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@Bunifa Latif：$Nike(NKE)$ $Nasdaq100 Bear 3X ETF(SQQQ)$ $NASDAQ(.IXIC)$ NIKE Inc. is engaged in the design, marketing, and distribution of athletic footwear, apparel, equipment and accessories and services for sports and fitness activities. The Company's key operating geographies include North America, Europe, Middle East & Africa, Greater China, Asia Pacific & Latin America. It sells a line of equipment and accessories under the NIKE brand, and also designs products specifically for the Jordan brand and Converse brand. The Jordan brand predominantly designs, distributes and licenses athletic and casual footwear, apparel, and accessories that focus on basketball performance, while the Converse brand mainly designs, distributes, and licenses casual sneakers, apparel, and accessories. Investment Overview Digitalisation - the key long term growth driver. Nike Direct, especially Nike Brand Digital, continues to enjoy high growth momentum by leveraging on rising penetration via digital shopping that offers better convenience to customers. Management expects sales contribution from Nike Brand Digital could account for 40% of total revenue in the medium term through elimination of retailers . Besides, the focus on data analysis could also drive further product penetration, especially for its target customers along with a better understanding of consumer needs and improving customer interactions to drive long-term growth. Professionalism - the key differentiator. Nike’s strong focus on the professionalism and functionality of its products allows it to stand out of the crowd. To sportswear brands, functionality should sustain as the key foundation of long-term growth, while a good catch in fashion trends could also lift product attractiveness and create hot items in the market from time to time. Case in point, the Company has developed some of the globally largest footwear franchises under Air Force 1, AJ1 and Dunk. The Company’s product teams involve professionals from various fields, including athletes, scientists, and engineers. An approach that regards highly on product superiority has helped Nike to reinforce its profound brand awareness and customer loyalty, thus enhancing consumers’ stickiness to its products. Macro headwinds ahead with China recovery weaker than expected. Nike has demonstrated sustainable revenue and margin growth given its leading market position. Inventory levels are lower by 10% y-o-y, while its total inventory units across NIKE and wholesale partners are lower by double digit y-o-y, reflective through the slight downtrend in EBIT margin. Yet, macro-slowdown has inevitably dragged on Nike's key markets including Nike and EMEA, while China's recovery slightly missed expectations. Prolonged supply-chain problems; Lower-than-expected consumer confidence; intensifying competition; outbreak of new pandemics, etc. Am rather cautious about the stock at the moment. @TigerEvents @Daily_Discussion @TigerStars @MillionaireTiger DYODD Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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