re: Nike's stock is down 75% over the past 5 years

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Nike's stock is down 75% over the past 5 years

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Only bright spot of late is the Vomero 18, I've purchased five pair of them so far.

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10 yrs ago, after their new CEO took over after Phil, and had the genius idea to basically abandon specialty brick and morter shops and thought all of their specialty shopping should be online. By doing this they fricked over their long established mom-and-pops/indy chains, and specialty shops. Before they had like 75% of the shelf space in those shops and no one else could make a dent because of their long established relationships.

Once they fricked over those specialty running, recreation, shops, massive amounts of shelf space was now available and smaller brands inked deals with those shops. It's no coincidence there has been an enoumrous rise of brands like Onn Cloud, Brooks, Hoka, Aisics, New Balance, etc.

Before they never had the opportunity to get their shoes in the hands of runners and common buyers. But once Nike abandoned that market, these other brands could finally flourish... And they did.

Years later, Nike fired that CEO, and tried to get back in those shops, but the inventory space was gone and it ain't coming back. The very shelves they dominated, and voluntarily gave up, are now off limits. I think they have around 15% of shelf space now and now have no innovation or reputation among runners who finally abandoned Nikes and looked at other brands which were actually superior.

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Interesting. I don't go shoe shopping that often, just a couple times a year when my boys outgrow or wear out their shoes they wear to school. We've normally gone to Academy, or a Dick's Last chance outlet store. I've found Nikes there, but we usually just look for what is on sale in their size that looks decent. Last weekend I took them to an outlet mall up in Leeds Alabama, and there used to be a big Nike factory store there. It was gone. Big Under Armor store where it used to be. And for some reason, even at an outlet store, kids UA shoes were $85. That just isn't going to work for most people, especially for 5-8 year olds that grow out of them in 4 months. I don't mind spending $150 on a pair of shoes for me because my feet haven't grown in 30 years, and when they get too worn out to keep working out in or running/exercising in, they're great yard shoes.

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Wasn't the slogan with their Kaepernick campaign "believe in something, even if it means sacrificing everything"?

Looks like they sacrificed everything

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Not everything. They could still have the Gillette men and Bud Light drinkers.

I'm a Nike shareholder and buy 1 share every other week since 2017. It hasn't been fun in recent years.

I said this a long time ago that they should have gone the Coca Cola/Mondalez approach and started buying up smaller incumbent brands before they did their damage. No one competitor is going to kill you, but it sort of becomes death by a thousand paper cuts. ON Cloud, Vuori, Legends, Burlebo, Lulu, Hoka, the list goes on. Go to a PTA meeting at a private school. Nobody in there is wearing Nike. 10 years ago, the whole building was.

Nike has a ton of nostalgia to play with here, but nostalgia doesn't produce. I'm always a Nike optimist and will be until/if they start losing licensing deals (NBA, NFL, MLB, Blue Blood NCAA).

It doesn't help that you can buy Nike's for 50% off MSRP at every Ross and Burlington in the country. That's never a good sign.

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What’s weird is the Nike Vomero is one of the best running shoes on the market.

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A great shoe. I've had about 5 pair.

Under Armour is awful and their stock is down 79% in 5 years. It's the poor people's brand nowadays and they've lost most of their partnership deals like with The Rock and several college teams that were UA are now gone as well. Doubt they are around in 10 years.

We are a sports family and go out of our way to not buy Nike. My kids joke, as even they know better.

Just a small anecdote of us, has no impact on their stock price.

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An example is someone who drank Bud forever, mostly out of habit it was a comfort thing to them. Then they trans up an ad and offend hard core customers. Customer now tries Yuengling and finds it tastes better.

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although i strongly agree with the last sentence, almost everyone i knew (and i think the revenue reflects this) switched over to michelob ultra...another AB brand

I’ll wear Nike shoes until the day I die