Today we're going to talk about the leader of sportswear, which has the number one market share in the world.$Nike (NKE.US)$。

1. Focus on direct selling: global sales have no dust, and the net interest rate has a significant advantage.

2. Replace Adidas,Nike as the main jersey sponsor of this World Cup

3. Understand the picture: taking history as a mirror, Nike can rise more before and after the World Cup!

Bill Bolman and Phil Knight co-founded the Blue Ribbon Sports Company (Blue Ribbon Sports) on January 25, 1964, and officially changed its name to Nike Inc (Nike) on May 30, 1971. Today, Nike is a world-famous sporting goods brand, headquartered in Beaverton, Oregon, USA. According to the list of the top 50 most valuable clothing brands in the world in 2022 released by Brand Finance, a famous international market research institution.Nike continues to sit firmly in the top spotForce pressing LV$LVMH Moet Hennessy Louis Vuitton SE (LVMHF.US)$Well-known luxury brands such as Gucci and Chanel。

In the 15 years up to 2022, except for the 2008 financial crisisNike closed down in only one year.And kept rising for the rest of the year From early 2007 to the end of 2021With a cumulative increase of more than 1529% over the past 15 years, it can be described as a long-term bull stock with steady growth.But the company's share price has fallen nearly 40% this year, dragged down by inflation and macroeconomic weakness.

The latest results released after trading on September 29th showed that Nike Q1 revenue was $12.7 billion, up 4% year-on-year and exceeding market expectations of $12.27 billion; net profit was $1.5 billion, down 22% from the same period last year. Investors are worried about Nike's inventory level, which has been increased due to continued fluctuations in the supply chain.The company's inventory at the end of the quarter rose 44% year-on-year to $9.7 billion.。

In less than two months, the quadrennial Football World Cup will be held in Qatar from November 21 to December 18. Due to the hot summer weather in Qatar, this will be the first World Cup in history to be held in winter.In full swingSports feastIn the near future, can Nike take advantage of the opportunity to blow the horn of counter-offensive through the cold winter?

The focus has shifted to direct sales: global sales have no dust, and the net profit advantage is significant.

Many people think that Nike and Adidas are two competitive sports duopolies, but in fact, Nike has long been ahead of its peers in global sales.

Thanks to its strong brand effect and accelerated transition to a direct selling model (Direct To Consumer), Nike is not only a leader in revenue, but also has an advantage over its peers in terms of net interest rates.

In order to shift the focus to the direct selling model, 60% of direct selling will be achieved by 2025. In just five years, Nike has reduced the number of wholesale partners by 50 per cent. Set$Macy's (M.US)$、$Urban Outfitters (URBN.US)$、$Dillard's (DDS.US)$, DSW, Zappos, and even$Amazon (AMZN.US)$And other well-known retailers are excluded from the long-term strategic partner list.

This is because direct selling is more profitable than wholesale, and Nike has more pricing power. Some Wall Street analysts estimate that Nike's gross margin for direct sales is 62 per cent, compared with 38 per cent for the wholesale industry. As can be seen in the chart below, Nike's direct sales revenue and share have been increasing in recent years. According to the 22FY financial report dataNike net interest rate is 12.94%.While Adidas, Puma and Under Armour were 10.41%, 9.02% and 2.99%, respectively.

Replace Adidas,Nike as the main jersey sponsor of this World Cup

The 32 national teams successfully shortlisted have released their official jerseys one after another, head jersey sponsors Nike,$ADIDAS AG (ADDYY.US)$And Puma have been campaigning for the teams they sponsor.

The number of teams sponsored by Adidas has shrunk to seven from 12 at the 2018 World Cup in Russia, with Nike replacing Adidas as the main jersey sponsor of the World Cup.Among them, a total ofThirteen teams are sponsored by Nike, including host Qatar, former champion "Gallic Rooster" France, and FIFA world No. 1 five-star Brazil, well ahead of Adidas (7) and Puma (6).

According to PR Marketing, a German football information company, in the last World Cup, 32 teams sold 14.9 million jerseys, bringing in about US $1.788 billion. Nike, who is firmly at the top of the jersey sponsor, will probably be able to hand over a good jersey sales report card this year.

Taking history as a mirror, Nike can rise even more before and after the World Cup!

In the past four sessions, two months before and after the World Cup (Statistical method: take the 2018 World Cup in Russia as an example, the holding time is from June 14 to July 15, the stock price range is from April 16 to September 14, the range is about 5 months)The share price of Nike has risen in varying degrees, with a maximum increase of 24.8% and an average increase of 10.4% over the past four years.Adidas, without exception, is falling, with the worst being the 2014 World Cup in Brazil, where shares fell nearly 30 per cent.

Watch the ball tip: 4 games a day in the group stage. The group stage matches are scheduled to kick off at 18:00, 21:00, 24:00 and 3am Beijing time. The final group stage and knockout stage are scheduled to kick off at 23:00 and 3 o'clock Beijing time respectively, and the final is scheduled to be held at 23:00 on December 18.

Maybe this will be the last World Cup for Cristiano Ronaldo and Lionel Messi, which is the youth memory of many people, just watch and cherish it. Which national team do you prefer? Can Mbappe and Benzema, who returns to the national team, lead France to defend the title? Comments are welcome to leave your views.

For those who are interested, you can put$Nike (NKE.US)$Join your choice to see if there is any "World Cup market" in Nike this year.