+ 0.70
+ 0.47%

Analyst Talks Nike's Leadership Shuffle

February 19, 2020 4:39 pm
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
Analyst Talks Nike's Leadership Shuffle

Nike Inc (NYSE:NKE) announced Tuesday a handful of leadership changes, including a new CFO, COO, and president of consumer and marketplace. According to BMO Managing Director Simeon Siegel, Nike is demonstrating the strength of its management roster.

What Happened

Despite multiple leadership changes, the only "new" high-ranking executive is John Donahoe who joined Nike as president and CEO in early 2020, Siegel said on Yahoo Finance's "On the Move." Nike does have a reputation for promoting executives from within so the latest move isn't anything new or surprising.

Nike's strength and advantages remain the same and a management change will be able to continue leveraging its scale and size, the analyst said. All the management team needs to do is keep focusing on what strategies work and remaining ahead of the competitive landscape, especially in terms of marketing and investments in the business.

Why It's Important

Nike is also showing an ability to stand out at a time when the coronavirus is forcing investors to sell shares of companies that aren't liked, he said. Encouragingly, investors are giving Nike "a pass" even though it derives a larger percentage of EBIT from China compared to rivals.

"At the end of the day, investors are owning Nike for the long-term and baring a prolonged epidemic, people would give it a pass," he said.

There is "no question" that Donahoe brings a strong level of experience in digital and technology and this focus will likely remain an ongoing focus moving forward, Siegel said.

Related Links

Judging By These Leveraged Funds, Consumers Are Still In The Economic Driver Seat

Nike Issues Coronavirus Warning, UBS Sees Zero Long-Term Impact

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to Benzinga Podcasts and our YouTube channel.

Related Articles

Nike Has Long Runway Growth With Focus On Direct Sales, Margin Growth: Analyst React To Q4

Shares of Nike Inc (NYSE: NKE) hit a 52-week high Friday after reporting a strong fourth quarter that beat Street consensus. Here is the reaction from analysts on the key takeaways from the earnings report and if Nike has more room to run. read more

Is Nike's Stock Still A Buy At All-Time Highs? The Street Debates

Nike Inc (NYSE: NKE) reported fiscal second-quarter results that came in better-than-expected and sent shares running to new all-time highs. read more

Piper Sandler Highlights Continued Foot Locker Store Closures In Downgrade

Footwear and apparel retailer Foot Locker, Inc. (NYSE: FL) is entering the final weeks of 2020 with many of its stores closed, and its long-term post-pandemic outlook has its own separate headwinds, according to Piper Sandler. read more

BofA Highlights Valuation Concerns In VF Corp Downgrade

Apparel and footwear VF Corp (NYSE: VFC) reported a 10% decrease in Vans brand revenue and this should prompt investors to turn bearish on the stock, according to BofA Research. read more