Here are your top 5 priorities and areas to go look at looking at the next 10 years…. you’re welcome. Lotsa kool aid drinker will tell you how great we are and Nike magic and all that BS but the numbers are the numbers as you know.
- Revenue is up 43%, but net income is down 17%. More sales, less profit. Not exactly the dream.
- Operating margin fell from roughly 14% to 8.2%. Nike is working a lot harder for every dollar it keeps.
- Free cash flow dropped from $6.6B to $2.2B in two years. That limits everything from innovation to buybacks.
- Nike spent roughly $35B on buybacks, yet EPS barely moved from $2.16 to $2.10 over the decade. Fewer shares helped, but weaker earnings ate the benefit.
- Investor credibility needs rebuilding. The market does not need another turnaround story. It needs proof through margins, cash flow, and EPS growth.
Thanks Dave,
Concerned former shareholder waiting for confidence to buy again.