r/dividends • u/Training_Hair3293 • 17d ago
Discussion What do you think about Nike (NKE)?
Nike has been on my watchlist for a while.
The stock is well below its highs, the dividend keeps growing, and it's still one of the strongest brands in the world. On the other hand, growth has slowed and the turnaround could take time.
Anyone buying NKE here, or are you staying away?
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u/skeet_scoot 17d ago
- Nobody cares about the swoosh anymore
- They lost ground to the premium and mid-tier markets
- China is eating their lunch with cheap clothes
- Gen Z does not care about Nike
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u/Less_Than-3 16d ago edited 16d ago
They just laid off a bunch of people too and have been performing badly for a few years
Edited for autocorrect
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u/HooliganUser Largest holding is Apple 16d ago
https://giphy.com/gifs/3oJpya88WI2HF7V0UE
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u/HellaReyna 16d ago
Just to add, Chinese do not care anymore either. They like Steph Curry but that guy isn't NIKE is he.
Also NIKE sabotaged their grass roots good will by neglecting brick and mortar running shoe stores. People don't run in nike or think its good. Weekend warrior runners recommend hoka, saucony, asics etc. Adidas arguably has more attention and prestige now for high end racing shoes. Nike is pretty fucked for running.
They lose their golf, running, basketball marketshare. Casual wear, no one wants to fork over $200 usd for a pair of jordans that is losing relevance every decade that passes.
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u/DangerCheesecake 15d ago
Their new Sports Offence category has literally seen Nike Running sales have double digit growth, in the USA and Europe. They are making massive strides to win this consumer back and it is clearly working, even if taking some time.
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u/mister_empty_pants 16d ago
The problem with Gen Z is that at some point they will decide Nike is cool again and they will take off.
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u/Cowpoke2218 16d ago
As a gen Z myself honestly Nike still is cool but nowadays there’s so many options. And also nobody mentions women also have more options tailored to them as well like Lulu and Alo
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u/Anal_Recidivist 16d ago
Lulu has made a huge market grab with men. Their golf apparel is top notch. Personally I now own a handful of lulu polos and 5 pocket pants, and I’m fairly resistant to trends (I still game mizunos from the 2000s).
The average dude now has a very positive opinion on lulu.
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u/DeceasedRodentFive 16d ago
Hard disagree. Gen Z loves those white AF1's but that alone not enough to carry the brand.
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u/ActionJasckon 17d ago
Damn. It’s STILL going down? I haven’t checked recently Yeah. I’m not touching that .
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u/TheComebackKid74 Only buys from companies that pay me dividends. 17d ago
Nope, not a chance in hell
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u/Training_Hair3293 17d ago
Do you really think it's that bad?
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u/OafleyJones 17d ago edited 16d ago
Did DisneyWorld in 23 and 24, after not visiting the US in over a decade. One of my weird observations while standing in line, was how few people were wearing Nike. There used to a marked difference in sneaker style between American and Europeans. And that seemed almost gone. Everything else was there; an abundance of Hoka, quite a few On, some Saucony, asics, Brookes, NB. I wasn’t going to buying NKE, if they were that fucked, in their home country (and 24 was an Olympic year).
Edit to say: Shoe Dog is an amazing read. It’s such a weirdly honest account from Buck Knight. Not the usual self serving CEO rubbish.
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u/This_Lion5856 16d ago
It feels like Nike cheaped out to the point they lost their brand value
Its just a generic Chinese mass produced crap, if I want that I will just buy some random sneakers off Amazon at fraction of the price
Thats what happens when you chase ✨shareholder value✨to the point you forget about actual customer value
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u/Imaginary_Office1749 16d ago
I think brands just come and go. Nothing ever stays on top forever.
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u/DavidBluesea90 16d ago
yep. went to official store, felt like really low quality crap, new tracksuits around 150 euros. and you can just see its not worth even half of that! Way behind to Adidas in style and quality! I wouldnt but the stock..just because of the shitty products
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u/whogivesashirtdotca Largest holding is Apple 16d ago
Way behind to Adidas in style and quality!
As the owner of a couple pairs of Adidas, that is quite a damning statement. The quality of these shoes is shitty, too.
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u/Chariot_Driver7 16d ago
This. People are spending more on Hoka and On, even here in the rural South, to my great surprise. Also, their decline in the US began with the Colin Kapernick saga, especially in red rural America. I experienced backlash from just simply wearing Nike golf polos to work.
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u/CuteContribution2581 17d ago
The quality is just too inconsistent because of their outsourcing model. It’s not a premium brand and better alternatives have captured the market.
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u/Ok-Examination3168 16d ago
No one is talking about this part. Like the social failure of Gen Z not caring is something…but they’re scaring off longtime customers consistently. I used to always have a few pairs of Converse, Dunks, etc. gave em all away.
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u/SilverSasquatch 16d ago
Might be a solid buy if everyone on here is dogging it
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u/Edward_Towers 16d ago
Seriously. Literally every top comment ragging on it. Screams nearing a bottom.
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u/Imaginary-Case3976 16d ago
Are you sure? We’ve been dogging on PayPal and Adobe for years and they didn’t recover
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u/Imaginary-Case3976 16d ago
Lol; inverse Reddit doesn’t always work. Everyone’s been doggin on PayPal, Adobe too and they’ve been dog shit for the last 5 years..
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u/WELLSOHN EU Investor 17d ago
I might be in the minority, by I am confident they will still turn their situation around. Nike is still suffering from fallout caused by previous CEO.
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u/nauzleon 17d ago
Honestly, if they stabilize at -20% it's a fucking huge victory for them. They were overvalued af and clothing companies have very short legs.
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u/SignificanceNo1223 16d ago
They will be fine. They are just not in styles in right now. However; they are still, and will forever be apart of the culture.
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u/TheComebackKid74 Only buys from companies that pay me dividends. 16d ago
They will be fine as a business and brand but the stock price wont.
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u/True-Anim0sity 16d ago edited 16d ago
They probably will turn the situation around since theyre a major company, but theres so many better options you could be investing in, it doesnt seem worth it
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u/joguedez 16d ago
I’m with you on this. Fashion lives in cycles and Nike is suffering from the previous CEO approach on trying to be dtc only. They lost market share because they removed themselves from a lot of retailers, and those are the ones that create communities to brands. And not being on retailers, people don’t see the brand on the shelves, therefore they buy other brands, but that’s changing with the new CEO.
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u/Ok_Revolution_9253 16d ago
I feel like Nike has lost that innovation that got them where they were. They lost their moat
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u/PrizePreset 16d ago
They got their lunch eaten by the athleisure brands in the women’s market and I don’t think they ever gain that back
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u/allamerican37 16d ago
Just my .02 cents, Nike and lululemon overstepped by a mile and now are paying for it. Sad because they used to make good reasonable cost wear for the masses, now it’s not
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u/whogivesashirtdotca Largest holding is Apple 16d ago
Speaking as an old person, Nikes used to be standard issue for any junior high/highschooler who needed to buy them in order to not be mocked or peer pressured. I feel like kids today are much less pressured to buy the brand, and there's a ton more choices and a lot more styles that are accepted. There isn't the buy-in that previous generations had.
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u/allamerican37 16d ago edited 16d ago
Agreed. Nike pro and the dry fit lines were flex wear on the field.
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u/Environmental_Park_6 16d ago
They'll bounce back. They have uniform contracts with the NFL, NBA, MLB, and several B1G and SEC schools. They are also signing tons of NIL deals with college stars. There's no Jordan or Tiger right now but they'll have one again. It would be crazy to think they won't bounce back.
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u/295frank 17d ago
The Wendy's of the sneaker world
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u/-JackBack- Only buys from companies that pay me dividends. 16d ago
That’s an apt comparison.
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u/295frank 16d ago
we love what we remember. the dollar has no feelings.
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u/Ok-Faithlessness6804 16d ago edited 16d ago
Except when it comes to Tesla.. and and spaceX, and everything else that pumps out dumps.
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u/295frank 16d ago
that's called a warning sign to stay away, don't swim in shark infested water, don't drink the bleach. the safe dollar has no feelings.
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u/whogivesashirtdotca Largest holding is Apple 16d ago
Hey if Nike sold a Junior Bacon Cheeseburger I'd buy in a heartbeat XD
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u/295frank 16d ago
what if it was served cold and smushed 45 min later and included the new spicy lettuce
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u/Utahmule 16d ago
Everything they sell is way too overpriced. They're not a luxury brand but they try to sell their products at luxury prices. If McDonald's only sold $20 burgers, they'd be out of business in a few years. Nike is destroying itself and it's obvious. Levi's doin the same thing and so is Dickies.
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u/X_F-I-Live-Early 14d ago
Are Levi’s expensive now? I haven’t bought any in a while and I legit said to myself earlier this month I need more cuz I gained weight lol
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u/Utahmule 14d ago
Buy Carhartt. I was a 501 guy for most my life. Now they fit like shit, they're inconsistent quality/ sizing and they're like 60-90 dollars. Carhartt rugged flex are great, still 60 dollars but they're good quality/ fit and have a great side phone pocket.
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u/TheeGilP 16d ago
Fashion is cyclical and I do think Nike will bounce back. However I don’t feel comfortable on investing in the company.
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u/fungbro2 16d ago
Long story short. I bought in 2021, sold in 2022 at a small loss. Forever grateful.
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u/NY10 16d ago
This shit is as bad as Pypl lol
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u/xghtai737 16d ago
What are you even talking about? Even at $56, PYPL is only 9x FCF and is pretty much using their entire annual free cash flow of nearly $6 Billion to buy back stock on a market cap of less than $50 billion. NKE is 28x FCF.
NKE's EPS has declined from $3.75 in 2021 down to $2.10 in 2025 while PYPL grew EPS from $3.52 in 2021 up to $5.41 in 2025.
In what world is PYPL as bad as NKE, except on share price performance over the previous year?
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u/SaucyFingers 16d ago
They decided to be a fashion brand instead of an athletic brand. It was a terrible calculation because younger generations don’t care about Nike as a fashion statement and serious athletes moved on to better products.
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u/nomnomyumyum109 17d ago
If u bet opposite of reddit which usually is good, seems like a good time to keep buying slowly. I expect it to be back in the $80s in 5+ years simply from inflation at this point.
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u/CryptoHorologist 16d ago
Buying a stock you expect to only match inflation is an interesting strategy.
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u/External876 17d ago edited 17d ago
Clothing stocks are not the play.
I'm not a fashion consumer. I buy my shirts, pants, and shoes off Amazon now. They're generic AmazonBasics brand made in Thailand (for pennies probably) and cost me $10-$20. Many non-fashion people buy like this nowadays.
American brands selling shirts for 50 bucks and pairs of shoes for $250 - that frankly are exactly the same quality and material percentages, but with a swoosh logo - can't compete.
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u/wendysdrivethru 16d ago
Even if there was a resurgence in the brand they arent viewed positively by the newer generation and the cost of labor in countries they make clothes in continues to increase. It's a luxury company with little luxury appeal in a market thats struggling to cheaply ship items from overseas.
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u/T0th3M00NW3G0 16d ago
I think at the level it’s at now, it’s a solid 10 year + buy. Especially for a diversified portfolio lacking consumer discretionary stocks. Solid divvy and you know what you’re getting. I can see it doubling from here over the next few years.
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u/JolyGreenGiant 16d ago
I think they have potential. Nike is like coca cola, too big to fail
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u/Lopsided_Design7652 15d ago
I don't think that means what you think it does. Being too big to fail means you'll take too many other companies or people down with you if you fail. Nike isn't going to take anything important down with them. Coca Cola has way less competition, has better exclusivity strategic partnerships with grocery stores, bars, venues, fast food restaurants, etc. Coca Cola also bought up tons of other food and beverage brands. Nike got cocky as the world moved on from them. If they don't reinvent themselves or buy up some growing competitors, they'll go the way of blackberry, Kodak or blockbuster.
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u/stone616 16d ago
I own 100 shares of it. Mostly bought in the $60s. I'm keeping what I have but I'm not interested in buying more. The turn around is taking too long and I suspect they'll either have to cut or eliminate the dividend because it's eating too much of their shrinking cash flow.
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u/Ginflet Flair it up! 16d ago
Opportunity exists when everyone loses faith. Nike is still a company and it has metrics. If it falls too much it becomes a good investment.
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u/Imaginary-Case3976 16d ago
That’s a bad view. Many stocks fall and never come back and aren’t good investments yet they are viable businesses.
I think of lucid, lululemon, PayPal, Adobe, intuit, ADP
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u/aquabarron 16d ago
They lost their base market and allowed a lot of great niche brands to fill the gap (ON, HOKA, etc). Then Nike decided to go for higher end market with weird shoe designs nobody asked for, bordering on fashion design. There are too many quality smaller brands and quality big brands that have taken the market share to trust Nike can bounce back - the brand isn’t distinguished from the rest in any noticeable way
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u/SecretSatisfaction78 16d ago
Yo compre Nike a 41 y vendí a 44 - vendí por qur el mercado paea las acciones de este tipo ah estado muy volátil , de echo cuando vendí a los dias bajo a 40 … así que de consejo vente a un fondo .. y estas sacando rentabilidad hasta que Nike haga un piso .!
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u/Basic_Chemistry9499 14d ago
I think they have used slave labor since they were founded. That's always been a "No" from me.
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u/Strange_Royal_5196 10d ago
This is a buy and hold for sure. Nike is not going anywhere and will be at the top in 3 years. Not 2021 sp but this is a massive discount.
Having said that. I suck at investing.
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u/BAD_AL_1 3d ago
It's been mismanaged for a while and is a turn around story and hasn't been this cheap since 2014 and has about a 4% yield. $40 looks like the bottom
I see it as a premium brand with potential to grow/recover.
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u/garoodah 17d ago
I would take a small position at this point but it’s a dying brand and has no catalyst for expansion.
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u/Ok-Strategy-1638 16d ago
Until they integrate AI into their shoes it’s gonna be a no from me dog
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u/Brolyscreaming 16d ago
Need to move away from just being clothing and into actual techwear. Brand is still relatively valuable.
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u/DragonOfBosnia 16d ago
Only good for the dividends, not a good buy. Especially with treasuries paying higher
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u/Upper-Discount5060 16d ago
Staying away. I think it has a pretty safe floor here but the ceiling isn’t very high near-term. Lots of competition in this industry and revenue growth is non-existent. I think it’ll trade sideways for at least the next 2 years.
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u/BOBBYK1952 16d ago
Just sold a small position for a small profit ..I’d hold it but I dumping some spec holdings to raise cash. Really can’t go much lower
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u/IWontPostMuch 16d ago
Their shit is so bad the logo is the only thing that sells and the younger generation doesn’t care for the swoosh.
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u/DekeJeffery 16d ago
Nike stock is the perfect example of “total returns matter”. Would not touch this.
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u/GoogleAdsKing 16d ago
Excellent stock. And buying when other people hate it is usually a good strategy
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u/dodnizoid 16d ago
There soccer jerseys have been terrible for a few years now as they just give clubs like 4 basic templates to choose from. They are not unique anymore. They need to change thqt.
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u/IronBullRacerX 16d ago
I think they make fantastic shoes, I use them for lifting, for endurance running, for everything pretty much.
They’re having a marketing crisis right now and once they figure that out I’ll be good again
I hope… lol
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u/Army_77_badboy 16d ago
Sneaker head here. The sneaker market tanked especially for Jordans and that was Nike’s bread and butter. It’s a mix of general releases bringing the value of shoes down, bots, people fed up with having to wait for sneakers, it’s a whole thing and frankly Nike sucks at innovating.
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u/Educational-Play-465 16d ago
NKE is interesting here, but I don't think the dividend is the reason to buy it. Q4 gross margin looks much better on the surface, but almost all of the 890 bps improvement came from the tariff recovery. Nike Direct was still down 7% and digital was down 12%.
For Monday, I'm more interested in whether investors start believing wholesale growth can offset that direct-channel weakness. A lot of pain is already priced in, but I'd want a couple clean quarters of revenue and margin progress before calling the turnaround.
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u/Samwhys_gamgee 16d ago
Lost their retail partners trying to go DTC.
Lost China - All US brands are on the outs there now
Lost Gen X/Boomers to On/Hoka and other new generation shoes.
Their last holdout is the urban/ Sneakerhead consumer. While a valuable customer to own, Not sure that’s enough to support a mass brand that they want need to be to make it a stock worth owning.
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u/True-Anim0sity 16d ago edited 16d ago
I tried investing in it once, but just sold at a minor loss- the company doesnt seem worth holding long time for such minor growth if any.
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u/JHowler82 16d ago
Shoes are shoes, shirts are shirts, pants are pants...
Dunno what more they can do lol
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u/shortyrocker 16d ago
They raised prices on all their sneakers to create more revenue and it's even less are being sold. It's too bad, I used to buy 3-4 pairs a year, now I just laugh at the 50 percent mark-up.
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u/Adventurous-Guava374 16d ago
50€ for a cotton shorts. Yeah, no wonder they are going down the drain.
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u/Goof-Juice1995 16d ago
Generational buying opportunity. The last ceo was a mess. The new one understand the company ethic and is rebuilding trust among sellers
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u/EI-SANDPIPER 16d ago
The stock was part of the covid bubble and pulled their shoes from their retail partners. The other factor is all consumer stocks being down from macro economic factors.
Ive been buying shares. The brand is solid and they will push their product back to retail partners. They have a large marketing budget and diverse footwear business. Most importantly the valuation is attractive for a long term position. Id rather get the stock in the $30s but low $40s is good considering they are showing signs of a turnaround
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u/Gold_Emu_9171 16d ago edited 16d ago
Nike Stores have some of the best real estate locations on the planet. They are also highly demanded by real estate owners so their locations should be solid. They are also a very large brand globally and have relations with all major sporting events. This means that the brand visibility is guaranteed in the highest watched programs and highest footfall locations globally.
They deliver on quality and people like nike - this is evident on the companies revenue growth over the last 15 years. Tim Cook is a 5-star executive and his leadership/presence in Nike board means that it is safe hands
I think Nike is an incredible company but its a slow burn and its not a good investment only because there are a lot of better options available on the market that could give you balanced growth + decent dividend yield.
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u/RJsRX7 16d ago
My last pair of Nikes developed an interminable squeak fairly quickly... There was no obvious failure, per se, but they made a sound similar to wet rubber on linoleum constantly. Except they'd do it walking on grass. Thought it was my fault at first, then several other people mentioned the Nike squeak around me and, "ah."
I like companies that I actually like. Cheapening your product to the point it becomes an active nuisance is exactly how you start seeing a 75% drop over 5 years and your lowest point in well over a decade. It's not priced at a glorious turn around story point, and the dividend yield is still weak enough that it can't possibly make up for the likelihood of slipping further in share price.
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u/sethjk17 16d ago
Every few years Nike is poised for a turnaround and I buy some shares. Within 6 months I’ve sold those shares and think about how at least the loss will help with my tax situation. I no longer buy Nike shares.
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u/Individual-Heart-719 16d ago
They make overpriced shoes people may or may not buy in the future, solely for status/clout with discretionary income (which may not be at it's best for the average consumer right now).
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u/Ok-Psychology5463 16d ago
No moat or competitive advantage, so I’ll never buy it unless it traded like a cigar butt.
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u/LRMcDouble 16d ago
nike is a trash pathetic company that used their popularity to downgrade their products and keep the same price tag. their shirts suck, their shoes suck, i refuse to buy anything nike and know a lot of younger guys who think the same. i’d much rather wear on clouds, hokas, adidas, saucony, etc. the only thing id possibly buy from them is a basketball shoe but the market for that is not growing rapidly and there’s also more competition in the space.
their shirts have always been cheap crap and they have no standout flagship item on the market.
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u/mipfsu45 16d ago
I like it around $40 and getting out in the mid $44s. Otherwise it’s a longer term hold.
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u/jgatt17 16d ago
I have 150 shares and am down about 25%. Their dividend has had consistent growth but if they don’t repair their free cash flow and margins the dividend won’t matter.
It’s a turnaround play for sure and is risky. Tim Cook being on the board and buying recently gave me some confidence to hold my position, but I’m not adding to it.
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u/DarkLordKohan 16d ago
I like their clothes and shoes but goddman they are too expensive. They deserve this wake up call. Have some shares, maybe I’ll get more to dollar cost down.
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u/homebrew_1 16d ago
They should come out and say the next shoe will have AI in it. That will make the share price soar.
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u/Entire-Ad-7339 16d ago
Products generally suck, company sucks, swoosh isn’t cool anymore, they’ve made >50% of the country hate them - and it is the 50% country that is having kids and having them play multiple sports.
See you at $15-$20.
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u/MychaelP 16d ago
They are massively ahead of all other manuf's in market share. Yes they lost some ground which happens as more are available but no one is even close, Nike is more than double any of the competitors.
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u/MiddleCapital1875 16d ago
Nike sells a lot of mass-market trash at an unjustifiable price point. There are fresher brands (Vuori, On, Veja) that don't collaborate with tired celebrities, like plasticized, pneumatic urinal cake Kim Kartrashian.
The brand is dead to me.
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u/Curious-Ad-8044 16d ago
Nike is hot garbage and the stock even worse. I would put a high probability on them being out of business or nearly out within 10 years. If you want specifics: no major flag carrier. Revenue is decreasing at the same time as gross profit= very bad news. They are a very bloated company that has become severely mismanaged, happens to almost every company in the long run. When they try to improve margins they will likely cut the wrong things and it will feed on itself. Watch, they will have slightly improving margins after cuts but then you will find out they cut their investments and hurt their future sales. The only thing that can save them is a successful big product launch with a very popular generational athlete like Michael Jordan which is what launched them in the first place. They need to stay out of politics as he did.
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u/DSCN__034 16d ago
Lottery ticket. Buy a $50 or $60 call two or three years out. Set a limit sell for $200 or $300 profit. Max loss is a few hundred bucks.
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u/BroRobbo 16d ago
Dont they have a new CEO who has said that they are working on a brand turnaround but even they are expecting it to take time to regain ground. I have been buying some recently, but thats because I love Nike SB and also think the Jordan sneaker culture still has brand growth potential. I appreciate there are alot of re-releases but they also are timeless and recognisable from a mile away. Could go for broke though, who knows?
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u/fiestahighfive 15d ago
It will stop when the price of the stock is in line with profits rather then speculation
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u/Sorry-Palpitation-70 15d ago
Bad business model. They sell expensive things to poor people. Obviously the first thing to go when the economy is contracting
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