NIKE(US:NKE) Zhi Tong Cai Jing·2025-08-12 09:03Core Viewpoint - The article discusses the recovery of U.S. retail stocks, particularly Nike's return to Amazon, which is expected to lead to an expansion in retail industry valuations as trade tensions ease and pricing strategies improve [1][2]. Group 1: Market Context - The easing of U.S.-China trade tensions and a shift in the Trump administration's tariff policies have led Wall Street to refocus on retail stocks that were previously impacted by tariffs [1]. - Goldman Sachs forecasts a stable performance outlook for the U.S. retail sector, driven by companies like Nike, Amazon, and Walmart, as they optimize their channel and pricing strategies [1]. Group 2: Nike's Strategy - Nike's stock has rebounded over 35% since hitting a year-to-date low in April, with Walmart also seeing a stock increase of over 25% during the same period [2]. - Nike has reopened its official store on Amazon, offering approximately 90 products, primarily priced under $100, to attract cost-conscious consumers [2][4]. - The pricing strategy on Amazon includes significant discounts compared to other channels, allowing Nike to manage product pricing and inventory effectively while maintaining brand premium [2][4]. Group 3: Competitive Landscape - Goldman Sachs notes that while Kohl's and Academy sell many of the same Nike products, their promotional discounts often result in lower actual selling prices compared to Nike's Amazon store [3][4]. - The overlap of products sold on different platforms indicates a strategic differentiation in product positioning, with Nike's Amazon offerings tailored to value-oriented markets [3][4]. - The initial promotional efforts on Amazon are less aggressive than those on other retail platforms, suggesting a controlled approach to inventory and pricing [5][6]. Group 4: Future Outlook - Goldman Sachs maintains a "Buy" rating on Nike, setting a 12-month price target of $85, reflecting confidence in the company's strategic positioning and market recovery [6].