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 has been able to raise prices and average price points even in tough times.
Nike's athletic products span footwear, apparel, and equipment over global geographies, channels and sports categories, mitigating risks from any particular product or market.
Nike is important to major athletic retailers around the globe. 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. Current trends in athletic apparel are fashion driven and the long run trajectory will moderate to levels suggesting a mature market.
Economic downturns could hurt top- and bottom-line results as more frugal consumers shy away from Nike's increasingly expensive products.
Nike is so large and has such a dominant share in many sports such as basketball, soccer, 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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