Nike (NYSE:NKE) is about to issue earnings results. Ponder this Bear Case Scenario:
Nike while a global brand still faces a formidable competitor in Adidas. Adidas dominates in soccer oriented sports cultures. Soccer is the world most popular sport. Nike is not strong here after many years of attempts.
Global sporting footwear and apparel is closely correlated to GDP levels. any fluctuations bites Nike in short order.
Import tariff barriers in Europe and Latin America can prove to be a serious impediment. Europe and Latin America are very soccer focused. Global manufacturing in Asia may not cut it for the soccer consumer.
Nike is top of the line premium branded. In any down turn cheaper lower margin alternative become popular.
George Gutowski writes from a caveat emptor perspective.