SHORT NIKE

We love the brand and believe in the LT NIKE story.

For us the future is brands like NIKE as sports apparel becomes a part of everyday wardrobes. Nike will continue to benefit from the secular tailwinds in fitness spaces and everyday wear.

However we feel that the stock going into these numbers is priced to perfection and some.

The tailwinds are already aggressively priced into the stock, as seen with ADS. Certainly future orders are unlikely to top the 20% mark recorded last quarter.

Add to this that analysts recommendations are 27 BUYS, 7 HOLDS and O SELLS. There is no margin for error, and good numbers are unlikely to be enough to see them push on.

We feel the increasing impact of competitive athletic market will effect Q3’s sales and margins which we think will lead to higher inventory levels.

It is now 18% off the February lows and 3% off all time highs.

Trading SELL into numbers tonight.