Nike's restructuring years

A few years ago Nike went through a transition period, and it was showing in their numbers. Third party retailers were taking heat and investors were concerned that the apparel business was going through a slump. But that was not the case.

What was really happening was a major disruption from online retail. This forced Nike to do a complete revamp of their distribution and inventory management systems. It didn't look good in the numbers, but as shareholders, we were confident that over the long run, this shift would be good for Nike because they would now be selling directly to the consumer through their own stores and their own online platform. Fewer middlemen means better margins and more control over the consumers experience.

Last night Nike hit an all-time high after surging 3%. This was off the back of a research report suggesting that Nike's direct selling to consumers was great for the business and has resulted in a far more efficient inventory process. What a twist!