Morningstar Rating

Stock Research and Analysis

by Paul Swinand

Bulls Say

As one of the world's most widely recognized brands, Nike wields significant pricing power. The company gets higher gross margins in footwear than competitors.
Nike's footwear and apparel assortment spans several geographies and categories, mitigating exposure to 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 Nike has the upper hand, garnering meaningful pricing power. 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 is favored in soccer-dominated emerging markets.
A prolonged global economic downturn could hurt top- and bottom-line results as cash-strapped consumers shy away from Nike's premium-priced products.
Trade barriers and tariffs on imported footwear in the European Union and Latin America could negatively affect profitability. Read more 

Management

Mark Parker was named CEO in 2006 following the resignation of William Perez, who clashed with founder and chairman Phil Knight. We think Nike is in good hands with Parker at the helm. A Nike employee for nearly 30 years, most recently serving as copresident   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 750   Read more 

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