If we draw a Fibonacci chart from the very lowest point NKE has ever been at (0.1$ per share (Imagine buying at those levels)) It’s clearly visible we’re in a Golden zone.
Add on top of that, drawing a long term trend line, and we’re basically there. Very solid entry position.
In combination with this, it’s important to know the underlying trend of the business. Under former CEO John Donahoe, Nike shifted its focus toward direct-to-consumer (DTC) sales, reducing partnerships with wholesale retailers like Macy’s and DSW. This strategy aimed to enhance profit margins and customer data insights but led to challenges, including increased operational costs and strained relationships with key retail partners. Recognizing these issues, Nike reinstated collaborations with major wholesalers, aiming to balance DTC initiatives with traditional retail partnerships. Elliott Hill, who began his career at Nike as an intern in 1988 and returned as CEO after retiring in 2020, brings over four decades of experience and a deep understanding of the brand’s culture and operations. His longstanding commitment and comprehensive knowledge position him well to navigate the company’s strategic realignments and drive sustainable growth.