Let's see what Nike has in store

Nike is expected to report quarterly earnings after the market close tonight. The stock has had a very rough four years, but the new management team assembled last year seems to be doing the correct things. The share price is up 30% from recent lows, and analyst ratings have mostly been upgraded since their numbers 3 months ago.

The sporting apparel industry has been a particularly challenging one since the highs of Covid. Nike has the advantage of a long legacy and well-established distribution networks, two things not easily replicated.

We have debated switching our athleisure investment to another company that has rising sales and fewer challenges, like ON Holdings. I think their shoes look great, and they have Roger Federer as an ambassador and shareholder.

The ON share price is basically flat over the last four years, even though they have tripled their sales. The key question for us is whether ON can maintain its momentum. They are currently a status symbol; people want to be seen wearing the shoes. When fads and fashions change, will ON be able to adapt too?

We will let you know tomorrow how the Nike numbers shape up.