In the retail space, a number of the world’s largest companies have refocused their energy to e-commerce in the wake of the coronavirus pandemic that has completely changed how companies are likely to do business moving forward. Nike, Inc. (NYSE:NKE) is certainly no exception. In this article, I’m going to make the technology argument for owning this stock, a stock which is typically viewed as a bricks and mortar retail play.
Nike’s shift to e-commerce in recent quarters has resulted in e-commerce growth of around 80% across the globe, an absolutely astonishing number. This growth has help offset extremely weak in-store sales numbers. On aggregate, Nike’s sales actually increased by 1% overall this past quarter, an amazing feat which has been the result of the company’s shift in focus. This incredible feat also indicates the ability of the company’s management team to quickly shift strategy and reallocate resources, a good sign for long-term investors looking to bet on a long-term winner.
The strength of Nike’s brand, and the company’s ability to pivot so quickly and gracefully has been impressive, and improves my estimate of the width of the company’s moat, or durable competitive advantage. Customers will find a way to purchase Nike products, a calming reality for investors who may have been concerned about the company’s bricks and mortar exposure relative to its peers. I think Nike is a great long-term pick, and investors ought to focus in on the company’s technological advancements when considering this stock today.
Invest wisely, my friends.