Nibbling On NKE


I’ve worn Nike sneakers my whole life and I love them. Maybe it’s the branding, maybe it’s the quality, or maybe it’s both. Regardless, I know that I’m not alone in being a huge fan of Nike. Which presents an interesting opportunity heading into NKE’s 1QFY24 earnings report Thursday afternoon. Because the shares have been whacked in the last few months and I wonder if it isn’t overdone. Reviewing their last quarterly report, EBIT margin stands out as notably weak at 9.5%. I don’t see any other quarters below 10% in my spreadsheet which goes back three years. That resulted in a 27% decrease in EPS compared to the year ago period. Nevertheless, I can’t help sensing opportunity when a great company like NKE goes on sale like this. NKE is NOT United Natural Foods (UNFI)! Therefore, I just picked up a fractional position and also have a limit sell order pending for a few NKE $85 Sept29 Puts at 95 cents.

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