Where Will Nike Be in 5 Years?
Nike (NYSE: NKE) has been one of the biggest surprise success stories of the coronavirus pandemic.
While nearly the entire apparel retail sector has been hammered by the crisis, Nike, after an initial setback, has thrived. The stock is up 30% year to date, and looks like the rare stock that has found a way to succeed in both a COVID-19 and post-COVID-19 environment.
Nike hasn't escaped the pandemic unscathed. Revenue slipped 1% in its most recent quarter and plunged by 38% in the quarter before that. But what has impressed the market is the company's ability to expand its margins and deliver strong growth in its digital channel. Its performance has convinced investors that Nike is gaining market share during the pandemic and will emerge from the crisis in a stronger position than its competitors. Those factors, especially its strength in the digital channel, also bode well for the company's competitive position five years from now.
Source Fool.com
