Nike, Inc.: Losing Credibility As Innovation Has Nothing To Show For

Vinay Utham, CFA
1.04K Followers
(17min)

Summary

  • Nike's Q4 earnings report led to a 20% decline in the stock following disappointing results and lowered guidance for FY25.
  • Despite touting innovation, Nike's strategy has not translated into market share gains, with competitors outperforming in sales and innovation.
  • China growth story for Nike has lost steam, with weak performance in Q4 and uncertainty in the macro environment for the region.

Missed Putt

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Investment Thesis

The last time I wrote about Nike (NYSE:NKE) (NEOE:NKE:CA), I analysed the company’s third-quarter performance and highlighted how the upcoming Paris Olympics could become a positive catalyst for the company’s latest products.

Since

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 a beneficial long position in the shares of NKE, LULU either through stock ownership, options, or other derivatives. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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