Nike: Problems Aplenty And Management's Actions Are Not Helping

Oct. 13, 2022 10:30 AM ETNIKE, Inc. (NKE) StockNKE
Vinay Utham, CFA
1.04K Followers

Summary

  • Nike's Q1 performance might have beat estimates but it was far from impressive.
  • Excess inventory is at uncomfortable levels and China continues to be a headache.
  • From a valuation standpoint, there is more room on the downside.

Nike store logo, London, UK

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Investment Thesis

The macro-environment finally caught up with Nike, Inc. (NYSE:NKE) as inventory levels and logistics costs along with problems in China led to an unimpressive quarter. In this article, I argue why there are plenty of issues plaguing the

This article was written by

1.04K Followers
An independent investor in the Indian and US equity markets with a CFA Charter and a PhD in Finance from University of Durham, U.K. I hold an Honorary Associate Professor in Finance and Corporate Governance title at Brunel University London. I have a YouTube and a Podcast channel, titled The Stock Doctor,' where I discuss my views on the US and Indian markets every week. In addition, I actively undertake quantitative research in the areas of US equities, Behavioural Finance, Corporate Governance, Activist Hedge Funds, Cryptocurrencies and M&A , and have published in top-ranked peer-reviewed journals.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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