What caused the Nike's best quarter ever and do you think it will be repeated? Not to sound like sour grapes or anything, but is it the result of the company’s brilliant and thoughtful strategy or is one of the primary reasons Nike has had great results layoffs and pushing people out the door?
8 replies (most recent on top)
New high again, on a down day in general and with daily demand well below average.
Is Knight smart enough to now short the stock, in the GRATS, all the way down, but is waiting to squeeze those shorts, that tried to short before they changed the weather vane.
Free Salazar, he was just doing what he was told, As in, "What ever it Takes".
Truly a Bubble big PE, in what was a poor Nike Olympics, after they paid a ton to have Naomi light the torch, rather than the Japanese Baseball Player , it was down hill from there.
When's Phil going to space?
It was about squeezing the last, fantastic, once in a lifetime, performance returns, from the layered GRATS that PHK set up with Jasper Ridge, to earn a family transferable bonanza, that PHK, being PHK, recognized was possible, with the low hurdle rate Treasury affixed to GRATS, with the near negative interest rates.
Unless someone at ProP gets a new IRS leak, we may never know how much Tax Free overage was generated for Knight Family GRATS, Jasper Ridge's Founder Wolfson, is the Primary Protector for SWOOSH LLC, and he has some very bright, almost exclusively SGBS grads, which is so PHK.
PHK watched those low rates, got to 2015, PHK retired, MP set the bar at 50 Billion by 2020, PHK set up Swoosh LLC, and the stock has been a rocket for anyone smart enough to have bought in and held.
Todays touch of 166.53, was a new high $263.15 B Market Cap, if PHK is still rolling over these GRATS, which he would do, this will deliver a pool into Knight Family Foundation Investment ARM that could finally allow Penny, to show some of her moves to Mackenzie and Melinda. Penny could make the Pacifica Northwest, the World Capital of Double XX philanthropy.
These moves were about throttling that stock to as high as it can go, tremendous accomplishment, whatever it takes, what it took, it was done.
Another question is where are they going to find talent to keep it going? Nike’s workplace rep is trash in PDX and West coast. Keep relocating people?
Nike makes widgets now. It'll be great in the short term but this strategy will ultimately ki-l Nike as a brand. But don't worry, they'll just blame it on consumers and "woke" athletes.
Most of the best talent left. The ones who created this moment for the brand are elsewhere now …. Great strategy
I think part of it is the acceleration of online and direct to consumer sales sparked by the pandemic. It massively increases the profit margins. On the other side of things, the company has been captured by Wall St (the C suite is no longer Nike lifers) and has been doing serious belt tightening. A lot of talent has left the company lately and backfills arent happening. They're outsourcing to India to save money. It'll be great for a few quarters and then it will stall.
I think stimulus checks really helped among other factors