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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (78757)	12/19/2025 4:48:14 PM
From: Harshu Vyas	Read Replies (2) \| Respond to of 79147

Couldn't agree with your post more. I was in Japan over the summer. Nike stores packed out. UK = same story. People have some kind of resonation/appeal to the brand. It's so powerful. I've never seen anything like it before. It's like they're hypnotised to the name, the logo, something. Ok, they may not be buying as much, but the interest is worth something that cannot be seen in the numbers. Maybe I'm falling for the in-person "eyeballs on a site" trick, but Nike is profitable. The second management get their act together and consumers fall in love with new products - which will result in margin expansion - the stock won't look so expensive. But that involves a successful turnaround. I have issues with management and the board. I'm not convinced with this sports/performance pivot. Hopefully, it's a narrative management want to spin because it's not why kids buy the shoes. It's not why customers fell in love with the tick. Trendy is part of Nike DNA now. Cutting that out would be an error. Seems to me Mark Parker has to go. He's been Chairman since 2015 - and the stock price is bouncing around those levels (all the while, he continues to cash out!). He oversaw the Covid mess (i.e cut relations with retailers to focus on DTC) and he's overseeing this mess. Idk whether Elliott Hill believes in this strategy but, if he does, he has to go, too. The Board just give me "Here's a plan, do it!" vibes. They hash it out without thinking and then they keep doing it when it's not working. Only to realise way too late they were wrong. Management are getting dangerously close to destroying their brand by copying Under Armour's strategy f*ck up of the 2010s. I am slightly worried. Yes, you have to push through old inventory to focus on the new stuff, but I'm not sure the new stuff will sell as well. It's very simple as I see it (and this is only from speaking to ppl my age) - 1. Improve quality (i.e comfort + able to be worn for more than a year!) of shoes. 2. Focus on inspirational marketing with your customer as the victor. 3. Sponsor/win contracts with the best athletes and build new franchises (difficult, of course, when you have had Jordan, Tiger and Serena Williams in the past!). Jordan won't be here in a few decades. Hopefully, Nike will. Nike's biggest issue wasn't that the shoes were ugly or they weren't in the right markets (which I've read in some places). Nike's low cost advantage of the past is gone and, arguably, under pressure. But they have something none of the other sneaker brands can buy. Mind share. Which gives NKE more than a fighting chance. Nike is the underdog in 2025. Can you believe it? Maybe my love for the brand and business Phil Knight created is blinding me. (I think the China sales is inevitable actually. That's not my main concern.)