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RESEARCH NOTES

Nike Distribution Needs A “Personal Genie” - 2/10/25

Tickers: NKE, FL, DKS, KSS, ASO, JWN, JDSPY, LULU, ADS-DE, PUM-DE, ONON

Distribution is the single largest challenge at Nike today. Many seem to think the only issue is innovation and certainly they can improve in that regard. But while it is likely true that innovation solves most problems (i.e. “hot” product often finds a way to sell itself), a company the size of Nike needs both of those engines to run at full steam. Bulls like to think that all Nike needs to do is launch some innovation and everything returns to normal. But what if their distribution problems are largely structural?

Ground Zero in the Athletic Footwear Debate - 11/12/24

Tickers: FL, NKE, ONON, DECK, UAA, VFC, ASCCY, ADS-DE, PUM-DE

Nike recently admitted that “the multi-brand environment is very competitive today and it will take time to expand market share”. Newer brands such as On and Hoka have proven formidable competitors, particularly within the Running category. Meanwhile, missteps by Nike have opened the door for traditional niche brands (Asics, Brooks, New Balance) to expand. As the largest retailer of athletic footwear in the US, Foot Locker is ground zero in this once in a generation realignment of the athletic footwear industry.

“Send In The Cleaners” Under Armour Style - 12/18/24

Tickers: UAA, NKE, FL, DKS, ASO, M, JWN, KSS, JDSPY

If there was ever a time for Under Armour to get its act together, it’s when Nike is in disarray. Under Armour was on a straight trajectory to ample success until Nike became determined to kill their footwear dreams out the gate. The investor day last week (12/12) highlighted both future product and new capabilities. But none of that matters if Under Armour hasn’t cleaned up its own act first.