Ben Gilbert: uncertainty

Transcript context

…Fair enough. I totally see what you're saying. If you were to say that the equivalent Disney animation for Nike was running at the beginning, I think it is unquestionably basketball today. I don't see them slowing in basketball. That's the thing. It's hard to come up with a bear case. They're all these little nitpicky. I listen to a bunch of Tegus calls, and I listen to the earnings calls on quarter. In doing my investor diligence on this, these are the things that people are concerned about. A big one is this potential reversal of strategy on D2C. They reopened Macy's, and they put more inventory in Footlocker in the last couple of quarters. That's concerning because the whole narrative has been, we're going direct, but also, uh-oh, we have too much inventory, so we got to blow it out and discount it through our retail channels. There's lots of questions to management about if that thing is happening right now. Big slowdown in China, not just them, but all the big brands. It seems like the Chinese market is shifting to Chinese-native brands, or there's a lot of signs that that might happen. The China market is a huge important set of consumers to Nike, so I think them figuring out, especially how their social justice stances fit in with the CCP control in China, that's a huge open question. Are they going to be able to address that biggest market in the world for feat or not? At scale, it's the question. Yup, makes sense.…

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