Nike is fully committed to the sports sector and is “Nike again”: analyst

Sportswear giant Nike (NKE) reported fiscal second-quarter results, beating analyst estimates for both revenue and profit. Aneesha Sherman, senior analyst at Bernstein, joins Market Domination Overtime to assess Nike’s growth prospects.

Sherman describes it as “a good quarter” for the sportswear brand, albeit “unexpected.” She emphasizes that the most promising signal came from the press release’s message to “take immediate action, return to sport, return to our roots, be Nike again.”

She points out that in the past, whenever Nike had a bad year, it would refocus on its athletic foundation, “which has somehow been lost in recent years through its innovation efforts.” Sherman emphasizes that new CEO Elliott Hill should prioritize the company’s sales strategy to make a meaningful impact.

“Elliott Hill’s background is perfect for this,” she explains. Having worked at Nike for 30 years, Hill is “intimately familiar with the channels,” making him “the perfect person to lead this return to sales.”

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This post was written by Angel Smith