David Rosenthal: belief

Transcript context

…I'm fascinated by that. I think they figured out clever ways to make a bunch of money on limited edition sneakers without having to be the marketplace for all the secondary sales. The other way that Nike potentially could capture this value would be to massively increase their prices. This is really interesting. I think this is where Nike is different from the luxury brands that we've covered, the LVMHs, the Porsches. Porsche makes tens of thousands of dollars of incremental gross margin with their library wine colors that you can buy. Nike sells these incredibly limited edition, retro, and otherwise sneakers, but they sell them for $150, $200, maybe $300, not a lot of money. The instant that they get purchased, you can turn around and sell them on the secondary market for $5000, some of these shoes, $10,000, maybe more. That is a very intentional decision by Nike not to capture that value. I think the reason they do it is to make all of this work, to make the dream work in a way that is applicable to everybody on the planet and not just Louis Vuitton's market, is they have to keep it attainable. They're willing to let that to $6 billion or whatever, go to secondary players, go to StockX, in order to keep the dream alive. It's pretty crazy. I don't think there is anything that I can buy from Nike that cost $500.…

Stored transcript either side of the excerpt. The highlighted words are the published quote; the surrounding text is unedited source, never generated.