Nike: a turnaround checklist
A new management team, a stock down by more than half from its high, and a brand that is still the largest in its category. Turnarounds take longer than anyone plans for, so this report is a checklist of what has to happen before I buy.
Sample research report used to test the layout. Delete before launch.
Thesis
Not yet. The brand is intact, but the inventory, the wholesale relationships and the product pipeline all need to be fixed before revenue can grow again. I want to own the recovery, not the repair.
The checklist
- Inventory back to normal levels for two consecutive quarters.
- Wholesale partners reporting improved sell-through.
- A product launch that sells out.
- Gross margin guidance that rises.
Risks
- Competitors taking share permanently while the repair drags on.
- A further guidance cut.
What would prove me wrong
The stock running before the checklist is complete. Turnaround stocks often move on hope first. If it does, I will have missed the first leg, and that is acceptable.
Position
None. Watching the checklist.