Managing Director Stephanie Simon of Winslow Capital Management says Nike Inc (NKE) is seeing an impact of the at-leisure trend in retail, where the consumer is buying less casual attire and more athletic wear.
“We are wearing our athletic wear places that we previously would have worn casual wear. Places where we normally might have worn jeans or khakis, people are just keeping on their yoga pants or regular athletic wear,” Simon says. “So that at-leisure portion of retailing is doing very well, and of course, that speaks to Nike’s sweet spot.”
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Simon says Nike is focusing spending and innovation on this area, with footwear and attire that are lightweight and have a style component to them. Despite past headwinds, Simon believes Nike is still a global growth company.
“They had a few misses a couple of years ago, but they have figured that piece of their business out. And so even with the currency headwind in China, their most recent quarter, this summer, it was quite spectacular,” Simon says.
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