Nike’s investments in the Metaverse also appear to be paying off. However, in the near term, there are way too many risks facing the company, in the form of rampant inflation, ongoing supply chain issues, and stringent COVID lockdowns in China.
In this post
Is Nike high risk?
“The Risk Score is a relevant measure for the assessment of a stock attractiveness. NIKE Inc. shows a Risk Score of 7.00. 0 corresponds to a very high risk and 10 corresponds to a very low risk.”
Beta (Ref: DJIA)
| Levered beta | Unlevered beta | |
|---|---|---|
| 3-Year | 1.09 | 1.11 |
What are some problems with Nike?
Our research highlights allegations of forced labour in the Nike supply chain, gender discrimination towards female athletes and parents, and failure to ensure all employees receive a living wage.
Who is Nike’s competition?
Nike competitors include adidas, New Balance, Skechers U.S.A., Steve Madden and ASICS America.
Is Nike volatile?
Nike Stock Return Volatility
The firm has volatility of 2.6176% on return distribution over 90 days investment horizon.
What is Nike biggest problem?
Nike is facing snarls in its supply chain that are slowing imports from its Asian factories and dragging down sales. Consumers’ preferences, priorities, and values are reshaping industries.
What & was the main challenge faced by Nike?
Nike a leading manufacturer of shoes and other sports equipment in the world faced lots of problems in adopting new software to streamline its supply chain and manufacturing processes in order to reduce gap between its products demand and supply.
Is Nike still using child labor?
Nike has admitted it cannot guarantee that its products will not be made using child labour in a report designed to address the accusations that have plagued the company.
Who is Nike’s biggest rival?
Adidas
Established in 1949, Adidas is a global brand and Nike’s top competitor. Nike vs. Adidas rivalry cuts across different sectors from footwear, apparel, and sports equipment, and accessories.
What is Nike’s target market?
Although with apparel and sports the market can be broad, for the most part Nike primarily targets consumers who are between the ages of 15-40. The company caters to both men and women athletes equally, and is placing an increasing focus on tweens and teens to build long-term brand loyalty.
Why is Nike so successful?
By offering more products to more people, in more markets than any other sports company, they are able to capture a far greater market share of the market than any other company. Like most leaders in the market, Nike values the consumer and the importance of providing a quality product.
Is Nike a good buy now?
Investors should take notice amid its recent pullback: Nike is now trading below its five-year average P/E multiple and may continue lingering at these levels for a bit. Nike grants investors a triple threat with sound financials, an attractive valuation, and an unrivaled brand image.
Is Nike worth investing in?
Considering the last three quarters, Nike’s revenue was up 7% y-o-y to $34.5 billion, while profitability rose 9% y-o-y to $2.91 per share. The company has focused on protecting its margins which grew 190 basis points to 46.3% in the first nine months of 2022.
What is Nike’s rate of return?
Analysis. NIKE’s 1 year price total return is -32.6%.
What Does Nike need to improve on?
Based on this part of the SWOT Analysis, Nike Inc. must improve its policies and strategies in the areas of labor and employment, product mix development, and penetration in developing markets.
What are the threats in footwear industry?
Environmental problems. Lack of fresh investment in the sector. Uneconomical size of manufacturing units. Competition among units vying for export orders leading to undercutting.
What are Nike supply chain issues?
With nearly every aspect of the global supply chain — from manufacturing to transportation to logistics — disrupted, Nike has dealt with shipping delays, constrained production capacity, and price surges.
Why is Nike an unethical company?
Since 1996, Nike has been critiqued for manufacturing its products Indonesian, Mexican, Chinese, Vietnamese-based sweatshops. Many workers were found to have been subdued to minimum wage and long overtime hours; issues which violated laws put in place to protect workers (Greenburg and Knight, 2006).
How does Nike protect their brand?
Companies like Nike use trademarks to protect their brand. With a trademark in place, a company can prevent unauthorized use of their intellectual property. Items that can be trademarked include catchphrases, names, figures, lyrics, and symbols.
What will be some of the challenges to be expected by Nike when implementing its strategies in less developed instead of developed economies?
Three critical challenges affecting Nike in developing economies have been identified as maintaining a low-tech, low cost product, high tariff rates, and marketing and promotional strategies.
Does Nike use slaves?
Nike is one of the largest companies that use sweatshops and child slave labor. Nike has sweatshops all over the world. In the 1970s, Nike’s shoes were mostly made in South Korea and Taiwan, with some factories still in the United States.