ZeroHedge·2025-12-26 18:00Core Viewpoint - Nike is experiencing a challenging market environment, but recent survey data indicates potential for a turnaround, particularly under new CEO Elliott Hill's leadership [1][5][6]. Group 1: Market Context - Apple CEO Tim Cook's purchase of 50,000 Class B shares at a weighted average price of $58.97 highlights interest in Nike despite its four-year bear market [1]. - Recent earnings data show softer demand in China and mixed trends in North America, contributing to Nike's stock struggles [1]. Group 2: Survey Insights - UBS Evidence Lab's global sportswear survey indicates that Nike's brand is improving year-over-year and remains strong, suggesting a potential turnaround [3][5]. - Key elements of Nike's strategy, such as re-entering the wholesale channel, are showing positive results, with increased consumer accessibility to Nike products [6]. - The percentage of consumers who view Nike as "good for doing sports" has returned to its 2019 peak level, reflecting a successful refocus on sports under Elliott Hill [6]. Group 3: Brand Strength and Consumer Sentiment - Nike holds the highest Net Promoter Score (NPS) globally, with scores rising across all studied regions, indicating strong brand loyalty [13]. - The brand ranks highly in attributes such as "high-quality products," "good for doing sports," and "prestigious brand," reinforcing its competitive positioning [13]. - Global purchase intentions for Nike footwear and apparel are increasing year-over-year, suggesting positive consumer sentiment [13]. Group 4: Challenges and Valuation - There is a slight erosion in global aided awareness among the 16-24 age demographic, which may impact brand perception [8]. - The Converse brand's survey results are underwhelming, indicating challenges within Nike's broader portfolio [8]. - UBS has set a price target of $62 based on a valuation of 29 times the estimated FY28 EPS of $2.15, reflecting cautious optimism about Nike's future performance [8].