Morningstar Rating

Stock Research and Analysis

by Paul Swinand

Bulls Say

As one of the world's most widely recognized brands with innovative products, Nike prices at a premium. It routinely earns higher gross margins at wholesale than competitors.
Nike's athletic products span footwear, apparel, and equipment over global geographies and many sports categories, mitigating risks from any particular product or market.
Nike is important to major athletic retailers and as such has supplier power in the industry. Although retailers and Nike call themselves partners, history suggests consumers can switch retailers more readily than they will switch brands. Read more 

Bears Say

The global athletic footwear and apparel market is highly competitive and correlated to GDP growth. Even though Nike remains the market leader, it has a formidable competitor in adidas, which has historically held an advantage in soccer-dominated emerging markets.
Economic downturns could hurt top- and bottom-line results as more frugal consumers shy away from Nike's premium-priced products.
Nike is so large and has such a dominant share in many sports such as basketball and running that it is difficult to extrapolate current growth rates far into the future. Read more 

Management

Mark Parker, who has been CEO since 2006, started as a shoe designer with the company 30 years ago. We believe he has done an excellent job of keeping product cycles fresh and relevant while investing in innovation and product cost control for the long   Read more 

Profile

Nike is the world's largest designer and wholesaler of athletic footwear and apparel. The firm sells to more than 50,000 retail accounts through a network of more than 850   Read more 

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