![\"\"](\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/3a2837b9410bf4175ec772d6d41399bd.jpeg\")
<\/a><\/figure><\/div>\n\n\n\nIt is the world\u2019s largest supplier of\u00a0athletic shoes\u00a0and apparel\u00a0and a major manufacturer of\u00a0sports equipment, with revenue in excess of US$37.4\u00a0billion in its fiscal year 2020 (ending May 31, 2020).<\/p>\n\n\n\n
The company markets its products under its own brand, as well as Nike Golf, Nike Pro,\u00a0Nike+,\u00a0Air Jordan,\u00a0Nike Blazers,\u00a0Air Force 1, Nike Dunk,\u00a0Air Max, Foamposite,\u00a0Nike Skateboarding, Nike CR7 and subsidiaries including\u00a0Jordan Brand\u00a0and\u00a0Converse.<\/p>\n\n\n\n
The company is headquartered near\u00a0Beaverton,\u00a0Oregon, in the\u00a0Portland metropolitan area and its shares are trading at the NYSE under the symbol NKE.<\/p>\n\n\n\n
On September 23, 2013, shares of the company replaced ALCOA as DOW Jones Index component.<\/p>\n\n\n\n
FINANCIAL RESULTS Q3-2021:<\/h3>\n\n\n\n
On Thursday, March 18, Nike reported fiscal 2021 financial results for its third quarter ended February 28, 2021, with the following highlights:<\/p>\n\n\n\n
- Total sales rose to US$10.36 billion from US$10.1 billion a year earlier, up 3 percent compared to prior year.<\/li>
- Direct sales were US$4.0 billion, up 20 percent on a reported basis, and up 16 percent on a currency-neutral basis.<\/li>
- Digital sales increased 59 percent, or 54 percent on a currency-neutral basis, with strong double-digit increases in all geographies.<\/li>
- Net income of US$1.45 billion, or 90 cents per share, compared with US$847 million, or 53 cents per share, a year earlier.<\/li><\/ul>\n\n\n\n
On May 6, the board of directors declared a quarterly dividend of US$ 0.275 per share, payable on July 1st, to shareholders on record on June 1st 2021.<\/p>\n\n\n\n
PGM CAPITAL COMMENTS & ANALYSIS:<\/h3>\n\n\n\n
Nike\u2019s\u00a0performance through the pandemic solidified the company as the indisputable world leader in athletic footwear and apparel.<\/p>\n\n\n\n
Execution of strategies like differentiated retail, massive digital growth, and overseas expansion all position the company for continued bottom-line growth and an even wider brand-based economic moat.<\/p>\n\n\n\n
The all-time chart of the shares of the company below shows its exponential growth since the end of the great recession in 2009.<\/p>\n\n\n\n
![\"\"](\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/05\/Screen-Shot-2021-05-29-at-8.57.54-PM-1024x337.png\")
<\/a><\/figure><\/div>\n\n\n\nMore recently, Nike has received criticism from the Chinese government and on the Chinese social media for expressing concerns about cotton from the Chinese region of Xinjiang being produced using forced labor <\/p>\n\n\n\n
The Company confirmed almost a year ago that it does not source any materials from Xinjiang, but the political weight of that statement is just now catching up to it in the form of potential boycotts from the Chinese Communist Party, Chinese influencers, and Chinese retailers.<\/p>\n\n\n\n
Based on the chart above Nike\u2019s stock is about 11% cheaper now than it was when it reported third-quarter earnings on March 18, of this year. Considering its sales were tainted by uncontrollable events,\u00a0the only major risk to Nike\u2019s execution of its growth plans are the Chinese boycotts.<\/p>\n\n\n\n
We believe that Nike\u2019s current troubles in China are likely to be short-term. Therefore we \u00a0believe that it\u2019s the perfect time to consider adding the company\u2019s stock to a balanced portfolio.<\/p>\n\n\n\n
Based on this we have initiated our coverage on Nike’s stock with a BUY rating.<\/p>\n\n\n\n
Disclosure:<\/h4>\n\n\n\n
We do own shares of Nike in our personal portfolio.<\/p>\n\n\n\n
In this rapidly changing world with its subsequent turbulence and coming hyperinflation cycle, PGM Capital is at your service as your Professional, Trustworthy, Dedicated, Financial Advisor and Asset Management.<\/p>\n\n\n\n
![\"\"\/](\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2021\/02\/When-you-succeed-we-succeed-transparant-1.png\")
<\/figure><\/div>\n\n\n\nLast but not least, before taking any investment decision, always take your investment horizon and risk tolerance into consideration. Keep in mind that share prices do not move in a straight line. Past performance is no guarantee for future results.<\/p>\n\n\n\n
Yours sincerely,<\/p>\n\n\n\n
![\"\"](\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric.jpg\")
<\/figure>\n\n\n\nEric Panneflek<\/p>\n","protected":false},"excerpt":{"rendered":"
Dear PGM Capital Blog readers, In this weekend\u2019s blog edition, we wish to elaborate, why investing in Nike Inc can be lucrative for growth investors. INTRODUCTION: Nike, Inc. \u00a0is an American\u00a0multinational corporation, which together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. The company was founded on January[…]<\/a><\/p>\n","protected":false},"author":2,"featured_media":21578,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51],"tags":[],"class_list":["post-21563","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pgm-capital-blog"],"_links":{"self":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/21563","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/comments?post=21563"}],"version-history":[{"count":43,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/21563\/revisions"}],"predecessor-version":[{"id":21609,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/21563\/revisions\/21609"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media\/21578"}],"wp:attachment":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media?parent=21563"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/categories?post=21563"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/tags?post=21563"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}