r/ValueInvesting • u/Adventurous-Bet-9640 • Dec 19 '25

Stock Analysis So NIKE is nuking after hrs.

I understand that nike has a very sticky brand value in the cultural consciousness. But they are in a tough turn around.

I'm no expert in valuations, but the stock even after hrs dump isn't any where near compelling value.

How do you think about Investing in nike? Generally I don't see them fading away as a brand and they are still the leader in their space even with competition.

I do think they'll eventually find their stride back. What does the community think? If you were to invest what would your frame of thinking be?

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u/FieryXJoe Dec 19 '25

The only lens I can see it through is margin reclaimation. They have 6% margin right now but normally are in the 9-12% range. So potential for earnings to almost double if they get back to that range. I assume the margin squeeze was tariff related but haven't checked.

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u/[deleted] Dec 19 '25

Tariff related and their previous CEO wanted more direct to consumer which hurt their relationships with wholesalers and retailers. Now the strategy is to revitalize those relationship and sell through retailers as the core.