Added to YB: 2026-03-03
Pitch date: 2026-02-28
NKE [neutral]
NIKE, Inc.
+1.85%
current return
Author Info
No bio for this author
Company Info
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic and casual footwear, apparel, equipment, accessories, and services for men, women, and kids in North America, Europe, the Middle East, Africa, Greater China, the Asia Pacific, and Latin America.
Market Cap
$92.1B
Pitch Price
$59.90
Price Target
118.10 (+90%)
Dividend
2.64%
EV/EBITDA
19.29
P/E
36.46
EV/Sales
2.04
Sector
Textiles, Apparel and Luxury Goods
Category
turnaround
Nike: WTF is Happening? ($NKE Deep Dive)
NKE (deep dive): Down 62% from 2021 peak on self-inflicted wounds: hard pivot to eCommerce backfired as buying shifted back in-store, excess inventory liquidations crushing margins, retro/lifestyle oversaturation. China down 20% (structural w/ Anta/Li-Ning competition). Tariffs hit 10-15%, gross margin fell 45%→41%. Recovery plan: renew inventory innovation (running +20%), restore wholesaler relationships (NA wholesale +23% Q2), fix China positioning. At 36x LTM P/E, recovery priced in; even bull case (5% growth, 45% GM, 13% EBIT margin by 2030) = 16x P/E on $3.89 EPS, implying 60-90% upside but low margin of safety. Risk: earnings power structurally lower from tariffs, China decline, new competitors, wholesale mix-shift.
Read full article (7 min)