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Nike: just do it?

The family-controlled sports fashion group has shown resilience during the pandemic
May 6, 2021
  • Founded in 1964, Nike has grown into a $210bn retail giant
  • The focus now is on pursuing higher margins via a direct-to-consumer strategy
IC TIP: Buy at $133
Tip style
Growth
Risk rating
Medium
Timescale
Long Term
Bull points
  • Strong and extensive financial track record
  • Unparalleled scale and diversification
  • Chasing higher margins via DTC approach
  • Fund manager favourite
Bear points
  • Highly competitive retail market
  • Potential drawbacks of dual class share structure

Paintings, sculptures, jewellery and watches. All items that you might expect to fetch large sums of money at auction. A pair of old trainers, less so. Yet history was made last month when Sotheby’s brought down the hammer on prototype sneakers developed by Kanye West. The footwear changed hands in a private sale for a record-breaking $1.8m (£1.3m).

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