I Continue to Believe Nike (NKE)’s CEO is a Winner, Says Jim Cramer

Core Viewpoint - NIKE, Inc. (NYSE:NKE) reported strong earnings but faced challenges in the Chinese market, leading to a decline in share price post-earnings [2][3]. Financial Performance - NIKE, Inc. reported $12.43 billion in revenue and $0.53 in earnings, surpassing analyst expectations of $12.22 billion and $0.38 respectively [2]. - A significant 17% drop in revenue from China was noted, contributing to the decline in share price following the earnings report [2]. Analyst Reactions - UBS reduced its price target for NIKE, Inc. from $71 to $62, maintaining a Neutral rating, citing the need for the company to adjust its inventory [3]. - BofA also lowered its target price from $84 to $73, attributing the change to concerns regarding the Chinese market [3]. - Stifel cut its target by $3 to $68 while keeping a Hold rating, commenting on the miss in third-quarter guidance [3]. Market Position and Brand Identity - Jim Cramer emphasized the importance of NIKE's brand identity, noting that the company has strayed from being a sports brand to a lifestyle brand, which he views as detrimental [4]. - Cramer highlighted issues in the Chinese market, including poor inventory management and misalignment with market outlets [4].