April 30, 2019

NKE – Market expectations are for Uniform ROA to expand to new peaks, and management is confident in the Nike App, product customization, and Express Lane


  • NIKE, Inc. (NKE:USA) currently trades at historical peaks relative to UAFRS-based (Uniform) Earnings, with a 29.9x Uniform P/E, implying bullish expectations for the firm, and management is confident in the Nike App retail sales, NikePlus membership product customization, and Express Lane initiative
  • Specifically, management is confident the Nike App leads to higher retail sales among users, and that digital initiatives will be a catalyst for North American retail growth. In addition, they are confident in their NikePlus membership customization, ability to create a shoe resale market, and that their Express Lane initiative will lead to shorter style update timelines.
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