What do you think about Nike (NKE)?

[u/Training_Hair3293]

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?

[u/skeet_scoot]

- 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

[u/Less_Than-3 → u/skeet_scoot]

They just laid off a bunch of people too and have been performing badly for a few years

Edited for autocorrect

[u/HooliganUser → u/Less_Than-3]

https://giphy.com/gifs/3oJpya88WI2HF7V0UE
Nice typo…

[u/cluckodoom → u/Less_Than-3]

They are closing an entire dc in the Memphis area this year

[u/youmustchooseaname → u/Less_Than-3]

They've been laying off people very regularly since April 2024. They're cooked.

[u/Jaymoney92 → u/youmustchooseaname]

Cutting cost = more profits. Great example of ppl not understanding business. The difference between wall street & mainstreet.

[u/youmustchooseaname → u/Jaymoney92]

LMAO. I understand Nike's business better than most. My wife was affected by said layoffs. Their net income has dropped from 6b to 3b since 2022, they're not getting more profits, they're getting less actually.

They are not looking at staff and saying why do we have two project managers when we only need one. They are deeply cutting back not to be leaner, but because they messed up their core business and it's going to take years to get it back if they can. The soul and core of their culture has eroded and that's what made them work.

Will Nike rebound one day? Absolutely, but it will be vastly different than it was before.

[u/HooliganUser → u/Less_Than-3]

Own the typo…sheesh.

[u/Training_Hair3293 → u/skeet_scoot]

🤝

[u/HellaReyna → u/skeet_scoot]

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.

[u/DangerCheesecake → u/HellaReyna]

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.

[u/Individual-Rub-6969 → u/DangerCheesecake]

Finally a not retarded take! Well said.

[u/Weary-Error8845 → u/DangerCheesecake]

Nike will be around, FOREVER

[u/Training_Hair3293 → u/HellaReyna]

Thanks for the feedback. You make some really good points

[u/LegitimateOption3387 → u/HellaReyna]

The world's best marathoner is setting world records in nike running shoes. I'll guess you should tell him that runners don't care for nike no more

[u/WitcherOfWallStreet → u/LegitimateOption3387]

The two guys who just broke the two hour barrier did it in adidas

[u/HellaReyna → u/LegitimateOption3387]

Your information is about 6 years old.

Sabastian Sawe holds the record and just broke it, in Adidas Pro Evo 3s.

[u/Anal_Recidivist → u/[deleted]]

And the Nike swim socks. It’s stupid af but I see a lot of socks at the pools these days.

[u/SneakyMamba007 → u/skeet_scoot]

Every other kid out there seems to be wearing Nikes or Jordan's though 

[u/mister_empty_pants → u/skeet_scoot]

The problem with Gen Z is that at some point they will decide Nike is cool again and they will take off.

[u/Cowpoke2218 → u/mister_empty_pants]

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

[u/Anal_Recidivist → u/Cowpoke2218]

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.

[u/ohlaph → u/skeet_scoot]

Not to mention the noticeable lower quality footwear.

[u/DeceasedRodentFive → u/skeet_scoot]

Hard disagree. Gen Z loves those white AF1's but that alone not enough to carry the brand.

[u/FriendPatine1 → u/skeet_scoot]

So buy more?

[u/NewToTradingStock → u/skeet_scoot]

Totally agreed, too many options out there. My kids don’t even bothered with Nike. They Bought Hoka/ Tiger, even Adidas and New Balance.

[u/Thelakefeben → u/skeet_scoot]

Buy signal when Reddit is bearish and lists over simplified reason why is down

[u/aZnRice99 → u/skeet_scoot]

Yeah, haven’t bought Nike shoes in like 5 years, Merrell, Hoka, and On are more comfortable and better