01-06-2017, 04:13 PM
Starting with the consumer, who's not asking for more product but looking for more choice of the products they love. We're responding by giving this consumer more distinctive options with fewer products, what we call edit to amplify.
Parker went on to say that reducing styles and highlighting key items and concepts has a huge impact across Nike's value chain to help manage supply and demand "nike sock dart to drive productivity and profitable top line growth while highlighting and scaling our most compelling product stories." If Parker is right, this new strategy could be a way forward in improving sales, margins, and eventually earnings.
However, there were a few problems that have plagued the company through the last few quarters that continued to be a problem up until the end of the year.nike air max 1 Nike's gross margin has continued to decline, and as of the second quarter, it was all the way down to 44.2% -- its lowest point in nearly three years. The decline comes from a higher percentage of discounted sales because of inventory management problems, something Nike management has been working on for a few quarters, as well as higher-priced inputs.
Now that Nike's valuation has come down and is probably more in line with current performance, the stock could be a great long-term buy for future growth if some of its big initiatives perform as well as management predicts. If the "edit to amplify" plan plays out and Nike can get its gross margin back up a few percentage pointnike air huarache run it could post earnings faster than sales as it also continues to focus on cost-cutting. As that happens over the next few years, the stock could have plenty of room to run for the years to come, which would make its current price look like an attractive entry point after a rough last year.
Nike's goal of reducing product lines but increasing value within the best-performing lines doesn't mean it will stop innovating.nike air jordan 1 retro high Just look at its recently announced goal of helping one of its sponsored athletes to be the first ever to break a two-hour marathon, as well as its new HyperAdapt self-tying shoes launched toward the end of 2016.
Parker went on to say that reducing styles and highlighting key items and concepts has a huge impact across Nike's value chain to help manage supply and demand "nike sock dart to drive productivity and profitable top line growth while highlighting and scaling our most compelling product stories." If Parker is right, this new strategy could be a way forward in improving sales, margins, and eventually earnings.
However, there were a few problems that have plagued the company through the last few quarters that continued to be a problem up until the end of the year.nike air max 1 Nike's gross margin has continued to decline, and as of the second quarter, it was all the way down to 44.2% -- its lowest point in nearly three years. The decline comes from a higher percentage of discounted sales because of inventory management problems, something Nike management has been working on for a few quarters, as well as higher-priced inputs.
Now that Nike's valuation has come down and is probably more in line with current performance, the stock could be a great long-term buy for future growth if some of its big initiatives perform as well as management predicts. If the "edit to amplify" plan plays out and Nike can get its gross margin back up a few percentage pointnike air huarache run it could post earnings faster than sales as it also continues to focus on cost-cutting. As that happens over the next few years, the stock could have plenty of room to run for the years to come, which would make its current price look like an attractive entry point after a rough last year.
Nike's goal of reducing product lines but increasing value within the best-performing lines doesn't mean it will stop innovating.nike air jordan 1 retro high Just look at its recently announced goal of helping one of its sponsored athletes to be the first ever to break a two-hour marathon, as well as its new HyperAdapt self-tying shoes launched toward the end of 2016.