Nike is down 75%, so I decided to look into it.
TLDR:
\- It was overvalued to begin with.
\- The decision to go all-in on online was pretty much a self-inflicted wound. They wanted to keep the gross margin. In the end, got a lower operating margin.
\- Elliott Hill is back as CEO (since 2024) and is reversing the damage. Fun fact: he started as an intern.
\- The market doesn't believe Nike will get back to slight growth while having a 10%+ operating margin.
Full deep dive (\~6 minutes reading time) for those interested: [https://thefinancecorner.substack.com/p/nike-down-75-insiders-are-buying](https://thefinancecorner.substack.com/p/nike-down-75-insiders-are-buying)
Looking forward to reading your feedback.
