Nike Inc (NKE-N)

Excellent company with very strong brand. Has sold shares, but will wait to buy back in. Ability to generate new products is incredible. Would hold shares for 5 years. 

You cant' just blame weak sales in China, because US sales are down too.

One of the worst performers, down 33% on the year, 52-week low. She sold a while ago, took a small loss. Unlikely to fall much further. 19x forward PE. Pressure in the space, sluggish sales in China. Cutting costs. Still has strong branding, global market share of nearly 40%.

Likes the company, watches it. She'd wait for confirmation of a turnaround before getting in.

It's temping to buy on such weakness, but the company hasn't owned it to what's wrong with it. Something's gotta change.

Is there any hope? After its last recent report, shares plunged 20% to march 2020 Covid levels. It still isn't rebounding, but still falling today. Sales were -2% YOY from weakness in North American and EMEA, though sales in China were actually +3%. They beat earnings though largely from cost cuts. Overall, it was a mixed quarter, but the forecast was grim, with a 10% sales decline. Their return to sales growth will take a long time.

He owned it but sold. It seems to be losing its brand image and a company from Switzerland is gaining market share. The stock is down so it will be a value candidate for a while. Wait for signs of a comeback before buying.

Is plunging nearly 20% after reporting and on weak guidance. Expectations were incredibly high. New products and lower inventory were supposed to happen in the second half, but are now pushed into 2025. Also, revenue growth has fallen (projected) from high-single digit to low. It will take a while to right this ship.

Is plunging 20% today on weak guidance. Is down 40% and their multiple is cut in half and their chief product officer left. They moved away from their core business--athletic leisure to back-to-work. He prefers LULU, which at 20x PE trades lower than Nike. Believes in LULU's management and positioning.

EPS of $1.01 beat estimates of $0.84 and revenues of $12.6B missed estimates of $12.89B. Sales declined 2% year-over-year, but its gross margins expanded 1.1% to 44.7% for the quarter. Management noted it is addressing near-term challenges head-on, and guidance was updated to reflect FY2025 revenue to be down mid-single digits, with the first half falling by high single-digits. Several analysts downgraded the name, but historically NKE has shown resilience during economic downturns. 

We certainly do not like the negative momentum here, and from its peak in 2021 it is now at a 55% drawdown. This is a slightly worse drawdown than in 2009, and slightly better than its drawdown from 2000. It is still trading at a fairly high forward P/E of 22.5X, considering the large drawdown, but for a long-term hold, we see this name as having potential to recover eventually. But this process could take several years, and for now we would prefer to wait until its price has settled and found an area of support.
Unlock Premium - Try 5i Free

Shares have fallen the last two quarters as low as $90, but are rising now. It could reach $110. The summer Olympics are a tailwind and results from China just have to be less worse to please the street.

You can start buying this now. It's underperformed. It reports Thursday. Last April, shares held the September 2023 low and was slightly higher. In recent weeks, shares have based and are rising to its critical 200-day moving average. He will take a small position today and add if this cracks its 200-day.

Does not own shares at this time. Is a quality company, and has been watching closely. Waiting for share price to fall before investing in company. Also concerned about product innovation cycle - hoping is restarts soon. Upcoming Olympics could also be good for the company. 

Has sold shares, and bought Target instead. Concerned about China exposure, and US consumer trends. Current share price is under pressure, which could be a good time to invest. Overall, is a quality company. Would buy ~$90/share. 

One of the most valuable brands in the world. Global giant. About 50% off of 2021 highs. Forward growth expectations compounded over 3 years about 16% in terms of earnings, faster growth than what analysts are projecting. This is predicated on margin improvement. Shift to direct-consumer sales is secular tailwind to gross margins. Lots of free cashflow, buying back stock. 23x, cheaper than historical average of 31x. Yield is 1.7%.

He's looking very closely. Hasn't pulled trigger yet.