nike

Executive Summary

Nike is the largest athletic shoe and apparel company in the world with a market share of nearly forty percent. The company incorporated in 1968, and has been headed by Phillip Knight, a co-founder and CEO, since its inception. Nike owns and operates over 700 factories worldwide and its products are distributed in 140 different countries.
Through extensive research amongst the consultants here at Prime Seven, we feel that our calculations prove that Nike’s current share price is overvalued. In addition to this, we have also found that Nike has faced a decline in growth in revenue and net income, a decline in market share, a series of questionable labor practices, and a slumping United States Economy. For these reasons, we feel that the NorthPoint should not invest in Nike for its Large-Cap Fund.
Nike’s Decline
Despite past years of great success, Nike has recently fallen into a slump. With the rise in competition from shoemaker Adidas and resurgence f...