According to Poser, Nike will likely pivot too quickly from DTC channels to wholesale, which could lead to saturation of its products in the marketplace, increased promotional activity and a hit to brand equity. Stock drops to $67/share.
“Nike is not as great a company today as it was prior to 2020, in our view, and does not appear to be heading the right direction despite management’s claims to the contrary,” Poser said. “We remain unconvinced that Nike has the team in place to once again become a growth company.”