Nike: Turnaround Is Expected With A Strong Brand Equity

Summary:

  • Nike is the most valuable apparel brand, with a brand value of over $30 billion and a market share of 38.23%.
  • Nike faced inventory challenges during the pandemic, leading to delayed shipments and excess inventory, impacting margins in the short term.
  • These problems are expected to be short-lived, and a turnaround should happen soon to the benefit of shareholders.

Nike Hit By Supply Chain Shortages Struggles To Keep Up With Demand Ahead Of Holiday Season

Justin Sullivan

Investment Thesis

Nike (NYSE:NKE) has experienced a significant decline in share price in recent years. In my opinion, most of the reasons that contributed to this decline are short-lived, presenting a great opportunity for long-term investors.

The


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in NKE over 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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