Business Strategy and Outlook| David Swartz |
We view Nike as the leader of the athletic apparel market and believe it will overcome current challenges like inflation, elevated inventory, and uncertain demand for apparel. Our wide moat rating is based on its intangible brand asset, as we believe it will maintain premium pricing and generate economic profits for at least 20 years. Nike, the largest athletic footwear brand in all major categories and in all major markets, dominates categories like running and basketball with popular shoe styles. While it does face significant competition, we believe it has proven over a long period that it can maintain share and pricing.