Avoid Nike: Earnings Struggles & Margin Pressures Deter Long-Term Appeal

24 days ago

Brett Schaefer

"Nike reported constant currency revenue growth of minus 1% and its worst gross margin in 20 years. Even if you combine their footwear competitors, I would say, 'no interest whatsoever' in Nike. It\'s difficult to see a 10x move given their size and pricing issues."

The speakers analyze Nike\'s recent earnings where weak same-store sales and margin compression were key issues. With competitive pressures from emerging brands and a high valuation (around 30x earnings), the panel expresses a clear trade call to avoid or trim exposure to Nike, arguing that there is insufficient risk premium for the premium price investors pay.

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