Nike revenue continues to tumble

I don't know how many of you have actually bought Nike products (not shoes) in the last few years, but they're quality is actually shockingly bad. Shirts, socks, shorts, etc that just kind of fall apart after regular use. Many other brands that are gaining ground in the US just make better stuff.

Nike shoes are what they are in the running world, but I know quite a few competitive runners who used to wear Nike's regularly and hate all the latest updates to the Pegasus and other trainers. And every brand has a super shoe now, you don't need to stick with Nike for the best performance.

There's more going on with the downfall of Nike other than outside excuses like tariffs

Well the failed launch of Swoosh TC is not helping the running community either

Pegs are still the best shoe and everyone loves the new Vomeros. Nike's supershoes are great too. Cmon now

Wall Street is doing well.

Main Street is not.

/thread

They have actually enjoyed two much improved fiscal quarters and have trimmed a lot of waste over the past year. The challenge for Nike is to regain retailer and consumer trust plus navigate a market where they are no longer the sole product innovator. In many ways, the recent story of Nike mirrors that of the United States: Huge and respected, got corporate, got lazy and tried to milk past glories. Decided that their way was the only way and pissed off a lot of good partners in the process. Now, others are offering superior options and better value without stringent conditions/arrogance.

One is trying to correct their path and win customers back. The other is doubling down on isolationism, cutting out long term partners, and wondering why they are losing business.

You are all looking at this from a strictly running standpoint, which is understood...but here's the thing...Nike makes a ridiculous ton of money in two key shoe segments. Casual/Lifesytle and Basketball.

When the economy is down (which it is, regardless of whether certain politicians want to address this or not, because their stocks and funds are way up), the people who buy spend the money for these two types of shoes due to marketing and "branding" have, well, less of that money to spend on discretionary items like "extra" sneakers.

Now expand it out beyond shoes. Less money for non-essential clothing, etc....

Every time I go buy a Nike Outlet or Clearance store, they are pretty darn packed. Would tell me it's not a product issue. It's a pricing issue.

I agree, and other companies are closing the gap with training shoes and flats. Nike still has a strong hold on spikes. Adidas' latest line took a big step backwards going to plate and heel styles similar to their adistar line in 2002. The avanti and ambition plates reek of it. The Avanti TYO and previous ambition plate was far better. Even their Avanti xc drew from that with a clunky heel and outdated finger/spline plate.

I've heard good things about the new Vomeros, but I promise you once the current college runners getting free Pegs graduate they will quickly realize they aren't all their hyped up to be

3rd quarter Nike revenue was $12.5 billion.

They are not going away anytime soon.

Once you go woke, you go broke

They are not. Also from a stock buy perspective, they look pretty ripe for being a good pick. The approx 15% drop in the last 5 days, nearing a 5 yr low (54.39)...there's some solid potential for a good swing and nice return here.

I buy Nike products all of the time. I run strictly with Nike socks. I have may of their performance briefs, shorts, shirts, jackets. Batting gloves for my son. I’m not sure about their quality going downhill. None of the stuff that I bought are falling apart at all. It’s just BS when people spew this nonsense. One of my Nike jackets after heavy use, zipper broke after about 8 years. I think that’s pretty good use.

Their shoes are excellent as well. I just prefer Adidas shoes so that’s what I mainly wear, but if Adidas shoes weren’t around, I’d wear mostly Nikes. Their shoes are really good.

However, to be fair, it’s not like my clothes from other brands really fall apart either. Cheap stuff that I buy on Amazon, they tend to last as well.

What? The Republican Party are woke now?

oregonlive.com

Nike co-founder Phil Knight makes record-setting donation to help elect Republicans

Jamie Goldberg

It is the single largest donation Knight has made to an Oregon candidate or political action committee.

Open link

That they’re nearing a five year low at a time when the market is making all times highs tells you it’s a company in secular decline.

You might end up being right, but you’re definitely bucking the downward trend right now.

To put it in perspective, had you bought $100 worth of Nike stock and $100 of the S&P ETF: SPY 5 years ago, Nike would be worth $40; SPY $185. It has lost close to 80% of its value relative to the S&P in the last 5 years. That’s horrible.

Have heard this one before, Bud. You keep throwing your money into that sinkhole, though.

When adjusted for inflation, Nike is no longer a revenue growth company. They have been flat since 2020, in stark contrast to most major US-based companies over the last half-decade. And where there was an area for potential growth, greater China, they have completely misread the situation and are down down 17% just this year alone, and it's going to get much worse, believe me.

For the poster above who commented on the product's quality, there is some truth to it, and it very well may be the company's true Achilles heel. The product is no longer considered of high quality by affluent consumers. One poster commented that the outlet, bargain Nike stores are packed. I can assure you, this is not a good sign. In fact, quite the opposite for a so-called premium and captivating apparel brand.

Spikes and road racing shoes are great. I'll give you that. Those don't pay the bills, however.

Happy investing.

This is true.

It just means stock had been overvalued and did not deliver on growth expectations of the market.

Still with $40+ billion in annual revenue, Nike has huge market share and won't be disappearing, it was just a bad recent investment.

Knight is very PHILanthropic. He has donated more to charity than anyone in Oregon history. He’s donated to cancer and Alzheimer’s research. He’s donated to stop climate change. He’s donated to OU and Stanford. He’s donated to Republicans. He’s donated to Democrats. It’s hard to be too critical of Phil. Most of his last political donations were in response to the adverse effects of the liberalization of drug laws on Oregon as a whole.