Nike’s (NYSE:NKE) revenue from footwear solid under the Nike brand declined from $24.2 billion in 2019 to $23.3 billion in 2020 although it recovered strongly to around $28 billion in 2021. Trefis expects the metric to grow to over $34 billion by 2023.
While sales fell marginally in 2020 due to the impact of Covid-19, they recovered nicely in 2021 driven by the robust economic recovery following the initial lockdowns. We expect long-term growth to be driven by Nike’s strength in marketing and innovation.
However, we think the projected growth is largely priced into Nike stock. We value NKE at about $140 per share, 5% ahead of the current market price.
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 Cumulative total returns since the end of 2016
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