The Largest Sports Brand Selling at a Discount
Previously, I discussed how Hoka and On are gradually capturing a portion of the market share in running shoes, a sector dominated by Nike. Investors have shown enthusiasm for their future prospects, a sentiment that has been reflected in their stock prices, rendering them less attractive to me.
Bye Nike; Buy Hoka and On?
Nike's share price plummeted by 12% following its quarterly results release. The guidance disappointed investors, as Nike slashed its full-year growth projection to just 1%, down from the previously forecasted mid-single digits. Nike, a well-rounded sportswear company, covers footwear, apparel, equipment, and more. However, footwear remains the primary r…
In contrast, Nike, the undisputed leader in sports brands, has seen its share price decline, making it an attractive option for value investors.
While Nike may no longer be classified as a growth stock, its established presence offers a contrasting sense of stability.
Moreover, Nike's business quality remains strong, and it boasts a much wider variety of sports products, unmatched by any other brand in terms of market share.
Nike's full-year revenue of $51 billion was more than double that of its closest competitor, Adidas, which reported $24 billion. Other sports brands are even smaller, typically generating less than $10 billion in annual revenue.