Nike (NKE) – Q4 2024 Earnings on June 27
Despite its 45% drop from 2021 highs and a 12% dip this year, there's a lot to be optimistic about. The post-pandemic shift and competition from brands like Hoka and Lululemon have hit Nike, but it's streamlining operations to save $2 billion over the next three years.
Nike has a strong history, with an 11% average sales growth from FY21 to FY23, and it's expected to post 1% revenue growth in FY24 and FY25. Adjusted earnings are also projected to rise by 16% and 5%.
With the Olympics coming up, Nike's stock usually benefits from the increased visibility and marketing opportunities (Nike CEO said it will be in the highest investment in marketing in the company's history). Plus, Nike's recent underperformance means it's trading 20% below the average price target and 45% below its all-time highs at around $95 per share. It's also at a 50% discount to its 10-year highs.
Nike has beaten earnings expectations in the last three quarters, and I believe it will report positive earnings again, which should drive the stock up.
Hedgefunds already noticed that and are going all in with bullish positions. Examples of those are : Bridgewater Associates (biggest hedgefund in terms of aum), Soros Capital Management, Sands Capital Management, etc.
I am going all in.
My position: Single leg long calls at $110, expiring on September 20th.
Buy Nike. It might just do it !
byu/Necessary-Bag-1348 inwallstreetbets
Posted by Necessary-Bag-1348
29 Comments
Eh
The company just had a lawsuit filed against them yesterday, interesting snippet here https://x.com/sneakerlegal/status/1804219316369277258?s=46. You notice how everyone is wearing uggs, hoka, on cloud, etc. shoes nowadays? This thing could pull a starbucks this quarter but maybe inversing my thesis is the move
Me no rikey the nike
Flip the bike sign upside down and it’s all of our PNL graphs
“Highest investment in marketing in the company’s history” sounds like they spend a lot of fucking money on operating expenses in the hope it generates future profits. If anything you should be looking 2 quarters out – your calls expire right before their next ER… which is probably why you bought them because they were cheap
That being said – retail is struggling and the Nike brand has fallen off since their dominance over the last couple of decades. They could be primed for a turnaround. I’ll buy in for oct calls if they pull back more
I am about to buy put for the coming earning, looking for $85 range , people are just tired of their product, all the shoes just sitting and mass return are coming. I resell sneaker , personally return hundreds of pairs this year since they are losing value bigly, people just don’t buy it, their inventory piles up , Nike recently raise the retail price in all the product line, but eventually sell them by huge discount, still can’t sell . I would definitely stay away calls, let alone 110s
I’m still boycotting after the whole Colin Kaepernick thing.
I’m buying Nike
I was at a concert and most of the yutes were wearing Nikes, bullish.
Told ya.
I’m thinking about ONON
The stock market doesn’t have discounts wal mart has discounts
No
Air Jordan’s are not the growth market they used to be. Women’s apparel is king and Nike is not the leader
Hokas way better
Have had a long position since 2018 and added to it recently when it dropped to low $90 range. One of the strongest brand recognitions in the world and has a hand in every sport/top athlete.
Hokas are so hot right now.
I have it on a watchlist for ballast and a bit further out. I don’t like the sound of all that advertising spending, tbh. And the Olympics, eh…
remindme! 3months
Covid bubble stock.
Bag holder here AMA.
Selling a put in the IRA Monday
Funny, I’ve thought about it too. I started looking a few days ago. They’ve been beaten down for months. But I do think this is their floor. With the Olympics coming up, there might be more interest.
All runners in my area wear hokas or on cloud. Nike is the default for ppl who don’t care about shoes I feel like
I am thinking about buying Nike but I just can’t do it.
Sold it about a year ago. Best decision I’ve ever made. Just about everything they make has plummeted in quality
There are better place to out your money.
Wrong Nike…
Everybody is chasing $NIKE on Cardano @Minswap
Tl:Dr Just do it!