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Nike (NYSE:NKE) has long been one of the world’s most well-known brands; a powerhouse that has dominated sneakers, apparel, and global culture for decades.
But recently their story took a sharp turn.
Shares of the athletic giant have fallen nearly 75% from their late 2021 peak, wiping nearly $200 billion off its market value. At the same time, profits have taken a hit, with the latest earnings report showing a 35% drop in net income (1).
Even the leadership behind the scenes seems worn down.
“I’m so tired of talking about fixing this, and I know you are too,” CEO Elliott Hill said at a recent internal meeting, according to Bloomberg (2). “You can’t sit there and say everything is great.”
Chief Financial Officer Matthew Friend was similarly cautious, stating that “the business is going badly” and “our business is not moving in the right direction.”
In a statement emailed to Bloomberg, a Nike spokesperson said: “This was a direct conversation about where we see real progress, where we need to move faster, and what we need to do to win. The discussion reflected the same truth we share externally: urgency, transparency, focus, and determination to restore growth.”
The company has been going through a difficult transition in recent years from changing consumer preferences and increased competition towards supply chain regulations and direct-to-consumer sales.
Some critics (3) have pointed out Nike’s marketing choices and cultural positioning, arguing that the brand leaned too heavily on social issues and is now paying the price for it (4).
The phrase “woke, broke” has resurfaced in online comments regarding the company’s recent struggles (5).
But this explanation may be too simple.
Nike’s challenges reflect broader pressures facing the retail and consumer goods industry. Rising costs, changing consumer habits, inventory missteps and increased competition from brands like On and Hoka have played a role.
In other words, it’s not just about messaging; It’s also about execution, strategy and a rapidly evolving market.
And these pressures show up in Nike’s financial statements, too.
Revenue for Nike’s third fiscal quarter, which ended Feb. 28, reached $11.28 billion, remaining flat on a reported basis and down 3% year over year on a currency-neutral basis. Earnings per share were 35 cents, down 35% from a year ago.
These numbers actually beat Wall Street’s expectations, as analysts predicted earnings of 28 cents per share and revenue of $11.24 billion (6).
However, Nike shares still lost 8.4% following the announcement.
What disappointed investors was the outlook. During the earnings release, management said it expects the company’s revenue to fall 2% to 4% this quarter, compared to Wall Street’s forecast for a 1.9% increase. The company also warned that sales in Greater China could fall by about 20%.
Nike expects revenue to decrease by a low single-digit percentage for the calendar year.
Even though Nike shares have fallen to their lowest level in a decade, not everyone is bearish. Following the report, Jefferies analyst Randy Konik reiterated his “Buy” rating on the stock and called the stock “very attractive” at current levels. Konik set a price target of $90; This is roughly 110% above where shares are trading today (7).
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For investors, the decline in Nike shares is a reminder that even the biggest names can falter and underscores the importance of building a diversified portfolio.
Rather than relying solely on stocks, many investors choose to spread their risk across different asset classes that may behave differently in times of uncertainty.
One of the most tested ways to do this is with gold, according to Ray Dalio, founder of Bridgewater Associates, the world’s largest hedge fund.
“People often do not have enough gold in their portfolios” said on CNBC last year. “Gold is a very effective diversification tool when times are bad.”
Long seen as the ultimate safe haven, gold is not tied to a single country, currency or economy. It cannot be minted out of thin air like fiat money, and in times of economic turmoil or geopolitical uncertainty, investors accumulate and increase its value.
Despite the recent downturn, gold prices have increased by more than 45% in the last 12 months.
One of the ways to invest in gold, which also provides significant tax advantages, is to invest in gold. Gold IRA with help from Priority Gold.
Gold IRAs allow investors to hold physical gold or gold-related assets in a retirement account, combining the tax advantages of an IRA with the protective benefits of an IRA. gold investmentThis makes it an option for those who want to help protect their retirement funds against economic uncertainty.
When you make an eligible purchase with Priority Gold you can: Buy up to $10,000 in precious metals free.
Like stocks, real estate has cycles, but it is not dependent on an evolving market to generate returns.
Even in an economic downturn, high-quality, essential real estate can continue to generate income through rentals. In other words, you don’t have to wait for prices to rise to see returns; The entity itself may be useful to you.
In fact, investing legend Warren Buffett has often pointed out that real estate is a prime example of a productive, income-generating asset.
In 2022, Buffett stated that he would “write you a check” if you offered him “1% of all the apartment buildings in the country” for $25 billion.
Real estate also provides a natural hedge against inflation. When inflation rises, property values often increase; this reflects high material, labor and land costs. At the same time, rental income tends to increase, providing homeowners with an income stream that adjusts for inflation.
Of course, you don’t need $25 billion to invest in real estate today, or even to purchase a single property outright. MongolianBeing a crowdfunding platform, it offers an easier way to access this income-producing asset class.
This is a real estate investment platform partial ownership in premium rental propertiesProviding investors with monthly rental income, real-time appraisals and tax benefits without the need for a large down payment or searching for tenants at 3 in the morning.
Team founded by former Goldman Sachs real estate investors handpicks the top 1% of single-family rental homes nationwide for you. In other words, you gain access to enterprise-quality services at a fraction of the normal cost.
Each property goes through a stringent review process that requires a minimum return of 12%, even in adverse scenarios. The overall platform has an average annual IRR of 18.8%. Offers usually sell out in under three hoursInvestments typically range from $15,000 to $40,000 per property.
You can sign up for an account and then Check out available properties here.
Another option is Lightstone DIRECTOffering accredited investors access to institutional quality multifamily and industrial real estate with a minimum investment of $100,000.
Founded in 1986 by David Lichtenstein, Lightstone Group is one of the largest private real estate investment companies in the United States, with more than $12 billion in assets under management.
Over nearly four decades, their teams have demonstrated strong, risk-adjusted performance across multiple market cycles, including a historical net IRR of 27.6% and a historical net equity multiple of 2.54x on investments placed since 2004.
Via Lightstone DIRECT Gain access to the same multifamily and industrial deals Lightstone pursues with its own capital.
Here’s the kicker: Lightstone is at least investing 20% of own capital in each transaction — roughly four times the industry average. Thanks to its skin in the game, the company ensures that its interests are directly aligned with the interests of its investors.
Prominent investors like Dalio often emphasize the importance of diversity, and for good reason. Many traditional assets tend to move together, especially during periods of market stress.
This message seems especially relevant today. Almost 40% of the S&P 500’s weight is concentrated in the ten largest stocks, and the index’s CAPE ratio hasn’t been this high since the dot-com boom.
This is where alternative assets come into play for many investors. These can include everything from real estate and precious metals to private equity and collectibles.
But there is one store of value that has been overlooked: It is rare by design, coveted globally, and frequently locked up by institutions.
We’re talking about postwar and contemporary art, a category that has outperformed the S&P 500 with low correlation since 1995.
It’s easy to understand why works of art often reach new heights at auction: The best works of art are in limited supply, and many of the most desirable works have already been snapped up by museums and collectors. This scarcity can also make art an attractive option for investors looking to diversify and preserve wealth during periods of high inflation.
Until recently, purchasing art was the preserve of the ultra-rich; just like in 2022, an art collection owned by Microsoft co-founder Paul Allen was sold at Christie’s New York for 1.5 billion dollars, making this collection the most valuable collection in the history of auction (8).
Now, Masterworks — a platform investing in shares of world-class works of art Works by famous artists such as Pablo Picasso, Jean-Michel Basquiat and Banksy can help you get started in this asset class. It’s easy to use, and through 27 successful exits to date, Masterworks has distributed more than $65 million in total proceeds (including principal).
Simply Browse through their impressive portfolio of images and choose how many shares you want to buy. Masterworks can handle all the detailsmakes high-end art investing both accessible and effortless.
The new offers sold out within minutes, but skip the waiting list here.
Remember that past performance is not indicative of future returns. Investing involves risk. See Reg A disclosures at: masterworks.com/cd.
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Nike, Inc. (1); Bloomberg (2); USA Today (3); YouTube (4); X (5); CNBC (6),(7); Christie’s (8)
This article provides information only and should not be construed as advice. It is provided without any warranty.
