Thoughts? Let’s hear some good takes with solid reasoning
13 replies (most recent on top)
@dh BINGo this is my guess, PHK SALE. And LMVH wants a cheaper purchase price so down the stock goes.
It helps if you want to sell $500 sneakers by 2030, which is obviously where the industry is heading.
I think Nike’s trying to become more appealing to a Western European consumer. Except I’m not sure this specific affiliation helps with change of perception…
Won't matter a bit, no one wants your overpriced boring cr@p anymore. You've become the Xerox of athletic gear, pretending its still 1995 meanwhile the wise and annoyed have all moved on.
Nike’s appointment of Alexandre Arnault to its Board of Directors seems odd on the surface.
He’s 34, the son of Bernard Arnault, Chairman & CEO of LVMH Moët Hennessy Louis Vuitton, and currently oversees LVMH’s Wine & Spirits division. While Alexandre is a runner and football fan, he has no obvious track record in the sporting-goods industry. So, is he equipped to identify how Nike can best energize its consumer base? Time will tell.
But there’s another reason I find this appointment intriguing. Could it signal the beginning of a new romance between Nike and LVMH? Let’s look a few moves ahead on the chessboard.
Does LVMH have ambitions in the broader sports world? The company owns a stake in Paris FC, was a major partner of the 2024 Paris Olympics, and has increasingly positioned itself around Formula 1.
So, could LVMH ultimately have an interest in Nike itself? Could Bernard Arnault convince Phil Knight to sell the Swoosh?
A year ago, that scenario would have sounded outlandish. Today, given Nike’s struggles to reignite growth and reconnect with consumers, it’s at least an interesting thought experiment.
Could a deal someday be consummated over a glass of Moët & Chandon aboard a luxury yacht in the Greek Islands if Nike’s stock were to fall below $30? Probably not the way most analysts would model it. But stranger things have happened.
Arnault’s appointment doesn’t immediately explain itself, despite the positive framing from Mark Parker and Elliott Hill. Perhaps we’re looking at the first date in a relationship that could eventually become an engagement — and maybe even a marriage.
I don’t know whether LVMH can solve Nike’s current challenges. But I suspect Alexandre Arnault has been asked to assess whether the two companies might have a future together.
The first date has taken place. Now let’s see where the relationship goes.
@ce I remember a time not that long ago when Nike wouldn't even consider selling at Costco - not even socks.
It’s what you guys think. The truth is, Nike’s losing its status as a high-margin, tier-1 brand. And there’s no stopping the layoffs without margin expansion. Ever. Do you want a Nike that’s perceived as the new Reebok, as shoes you buy at Costco? As a discount brand? EH spoke of it several times, especially regarding the Chinese market, where Nike has little control over pricing and the customer experience.
And I know Nike sells at Costco sometimes. Now imagine if that were the norm and not the exception.
Papa A lost 65 billion so far this year. So the idea was to bring someone on board who is facing the same geo-economic political financial marketplace issues to the board. Baby A rebranded brands like Tiffany under different landscape but I am sure the decision will show up as slight gains in the stock - perfect timing before Oct 1
perfect nepo baby for BOD
I haven’t seen this Succession episode, is he the eldest son?
He is very familiar with losing billions in valuation in a short time so he should feel right at home with Nike
Knight Trust will sell controlling stake to LVMH. And we will see some wild collabs.
We’ll be knows something about the fashion business.