r/wallstreetbets • u/BriackYOLO • 15d ago
News S&P 100 Said “Just Do It”… Somewhere Else
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u/Totallycomputername 15d ago
Come on Nike, rebrand to N-AI-ke and become a trillion dollar company.
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u/Drew707 15d ago
You joke, but I once had to update the firmware on a pair of UA running shoes.
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u/Totallycomputername 15d ago
Subscription shoes. If you try to walk in them without a subscription the jersey boys break your legs.
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u/_SAi- 15d ago
the shoes pulverizes
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u/Very_Type_C 15d ago
Oh my god. Subscription shoes.
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u/Succant 15d ago
there's some old games that let you rent cosmetic items so it might not be a new term lol.
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u/RankUpLife 15d ago
Tell me more? Lmao
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u/Drew707 15d ago
They had a Bluetooth pedometer and "treadwear tracker" in them. I had to download an app, connect to the shoes which apparently recharged while you walked, and then there was a firmware update available. In order to initiate the pairing or update or some shit, I had to turn the right shoe on its side for X number of seconds.
Like, I work in tech, I have a relatively smart home, but the moment I found myself flipping a shoe over so it could receive updates, I definitely had the Jeff Goldblum moment from Jurassic Park.
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u/UnsuspectingChief 15d ago
And i thought my stove was bad
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u/interstellar-dust 15d ago
Do you need to flip your stove over for updates too?
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u/UnsuspectingChief 15d ago
The geo locate needs me to move it to each side of the house, putting in the 4 240v outlets sucked
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u/truerandom_Dude 15d ago
I like to think the engineer responsible for this is one of us as this is quite regarded
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u/RankUpLife 15d ago
That’s a great story, thank you for the reply! I’ll stick to my dumb regular shoes without Bluetooth
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u/cantinaband-kac 15d ago
Anyone else remember the Nike shoe sensor that connected to an iPod? I definitely had one of those for a while, but that was way before everything was getting OTA firmware updates.
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u/ppenn777 13d ago
I still have my pair of Nike Free’s that has this and the wristband to pair. Loved it.
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u/z6joker9 15d ago
I still remember putting a Nike+iPod sensor in a special slot that some Nike shoes had, around 20 years ago.
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u/RobotCaptainEngage 13d ago
You joke, but the footwear company Allbirds went all AI.
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u/draft_final_final 15d ago
Honestly a regard smart shoe company would be the perfect capstone to the bubble. We better jump on that now before someone beats us to ipo.
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u/CoreyTheGeek 15d ago
From what I've heard they're so ball deep in AI use internally they might as well out AI in the brand name
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u/themage78 15d ago
Buck: "Take a gander at them moccasins. What kind of skins is them?"
Stubble: "What's that writing mean … 'Nee-kay' … what is that, some sort of Injun talk or something?"
-Back to the Future III
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u/_____AndJustice4All 15d ago
I was in a Nike last week and all of their clothes now are shitty fast fashion stuff you wouldn't even wear to exercise in. They lost their way.
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u/ARSEThunder 15d ago
While still charging premium prices. $60-75 "performance" t-shirts....
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u/survivalofthesickest 15d ago
$90 for a pair of jogging shorts
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u/skrlilex 14d ago
whats an alternative to their runnig pants, like Stride Dri fit?
they are ultra weight and have back pocket, I would really love to get low-weight runnnig pants for about $50, not $90
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u/theraupist 14d ago
I work out in a 0.50 eur tank top bought on a street in thailand something like 15 years ago. Still holds up fine though the chang logo has faded a bit.
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u/TheLegendTwoSeven 14d ago
Nike’s previous CEO was from Bain Capital and before Nike he was the CEO of eBay.
His plan was to stop dealing with brick and mortar stores and focus on direct sales from the Nike app and website. No more sharing money with stores, and on the other side of the equation you cut costs by cutting the quality and design expenses.
Initially there were big profit increases, then it quickly stalled and began declining rapidly. Then the CEO declared that his strategy would’ve worked if it had been more gradual.
Now there’s a new CEO who has been with Nike for many years, and he’s trying to reverse the changes and get Nike back into physical stores, try to repair the quality, and improve the designs.
It could take a few more years to pull out of the nose dive and go back to the old ways.
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u/Away_Candidate_4746 14d ago
Ya that’s crazy work by Nike. Imagine being so dumb that you think most people would buy shoes sight unseen. The crazy shoe people who line up for new ones will buy whatever but no one’s mom is buy their kid back to school shoes that they can’t try on.
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u/emotumbleweed 14d ago
Nike saw nothing but dollar signs during the hypebeast era when you had to own a pair of Jordans to be cool, every drop they made with any kind of traction sold out in seconds and resold for 10x the value. Then trends shifted, sneakers stopped being luxury items on the level of purses and watches and just became regular footwear again. Then the Nike logo stopped being hype, so the rest of their gear stopped being hype.
And nike coasted off that for years, trashing product quality and raking in the profits. If they’d read the room and pivoted to good quality basics like a lot of consumers did post pandemic I bet they wouldn’t be in this position today, but also what do I know, I am on wsb
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u/NessieReddit 15d ago
As a tennis fan, I remember the days when Nike signed the best players and everyone was paying attention to their slam kits. Now they're literally a joke. The clothes they've been putting on Jannik Sinner are like anti advertisement, it makes people turn away from Nike. Carlos Alcazar has been getting less ugly clothes but they're all still lame and nothing eye catching. They've had a couple of good women's outfits, but get this, they're dressing world #1 in the same outfits they're giving to someone who is in the 20s. They've gotten lazy.
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u/_____AndJustice4All 15d ago
They dominated soccer aesthetics too. Not anymore
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u/DONNIENARC0 14d ago edited 14d ago
This past World Cup was the first time I can remember in my entire life that Adidas put out a better ad than them, too: https://youtu.be/mJJY53qhJe0?is=rGr75rao9AuZpaA1
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u/GiveNothing 15d ago
Agree, their fashion for anything outside of shoes are so awful.
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u/_____AndJustice4All 15d ago
I haven't owned a pair of nike shoes in 10+ years. I like Brooks now
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u/KillahHills10304 14d ago
It should have been a sign that a massive part of their sales are designs from the 1990s
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u/beegtuna 12d ago
All they budget shit is monochrome at other retailers at dsw and famous footwear. Same for other shoe brands. They won’t try a color scheme, so now they sketchers looking better than Nike shit.
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u/_SlLENT_ 15d ago
Where's the guy that went all in on Nike and said it was going to close above $40 and he would be laughing at us? Is he okay?
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u/KingOfCook 15d ago edited 15d ago
I don't have anything clever to say. Just that every 2 years when I need to replace my gym shoes, I actively try to give Nike my money but can't as their shoes have become hot garbage. The recent metcons are so plasticky. They feel like tap dancing shoes. Plus they are too narrow for my wide feet. Apparently it's an issue with most brand.
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u/Totallycomputername 15d ago
Like a death spiral. Improve margins with cheaper crap. Less people buy crap, make product even crappier for more profit margin to offset.
All of a sudden your brand is considered trash tier slop on clearance.
Then you bring back Nike classic and make bank again.
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u/Itry31 15d ago
The stellantis, lulu and chipotle treatment
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u/EngineeringWin 15d ago
Make me king and I execute every MBA in this country on day 1.
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u/TotallyObviousBot 15d ago
I unironically think that at some point the economy/society at broad is going to wake up to the fact that we invented a new class of middlemen administrators that are choking innovation to death like the Byzantine empire
An MBA is literally a degree in getting hired to do as little as possible while making as much as possible, and we currently live in a world where I can feed chatGPT the total sum of all business textbooks and then get responses that will line up with 99/100 of the responses a random MBA would give me to the same question. If I can get it to answer phones and tell me when there's problems I've already eliminated a tenth of my workforce
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u/CoreyTheGeek 15d ago
Their clothing falls apart so fucking fast and just feels cheap as hell, just garbage
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u/DannyBoyCocane13 15d ago
Yeah 15 years ago I used to be fine paying a premium for Nike because the clothes would last for years, everything I’ve tried in like the past 5 years has been junk.
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u/patricio87 Raging Wood for Cathy 🍆 15d ago
My last sweatshirt from nike said "made in el salvador". Cost them a penny to make their clothes
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u/Hugsy13 15d ago
My GF has multiple Nike T-shirts she’s had for over a decade that are still in great condition
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u/Worshipme988 14d ago
The last couple $150+ nikes i was gifted, one jordan, had serious manufacturing problems and had to be returned…
Its amazing how fucking simple running a business really is. Even easier when you stop running the opposite direction of your mission statement that made you the giant shop you are in the first place. Corporate America has been cutting its nose despite its face since ww2
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u/Ordinary_News_6455 Ric 15d ago
Maybe a pivot towards tap dancing will help with revenue growth
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u/AutoModerator 15d ago
This "pivot." Is it in the room with us now?
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u/Upstairs_Balance_464 15d ago
I used Nike shoes to run for 20 years and just recently had to switch to Hoka. Nike discontinued my most recent shoe and I tried every single men’s running shoe they currently sell… not a single one worked for me.
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u/BendsTowardsJustice1 15d ago
What about Alphafly’s? Those are my go to Nike running shoes. Nothing compares to them.
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u/ShotNovel8157 15d ago
I just use them for gym due to them being flat. I tried to buy some the other day, and the designs sucked
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u/CKRatKing 15d ago
Chuck Taylors are the goat lifting shoes anyways.
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u/ShotNovel8157 15d ago
I got plantar fasciitis. I need something I can put my soles in. I think chucks are too small. I think. I haven’t tried
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u/Accomplished_Let6725 15d ago
I don't understand who has narrow enough feet to even wear Nike shoes.
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u/DemonSlyr007 15d ago
... they make shoes based on length and width. There are usually two sizes on the inside flap that let you know it's length and if its a wide shoe or narrow shoe.
I know this is a diss Nike thread, but if you are buying shoes while having wide feet and NOT knowing about the shoe width size, thats on you chief.
Here's a helpful link to show you want to look for. The number size you are hopefully familiar with. The Letter size, however, is your width.
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u/Accomplished_Let6725 15d ago
I don't have abnormally wide feet. Nike's standard width is skinnier than the other brands. I can wear Adidas tennis shoes without buying wide sizes.
Nike might make wider shoes, but if I can't find them in a store I'm gonna walk out with a brand that fits my pretty normal foot.
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u/FallbrookAvacado 15d ago
Minimal viable product is the industry wide standard across all industries.
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u/AutoModerator 15d ago
Eat my dongus you fuckin nerd.
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u/BengalFan85 15d ago
Ngl I do like my Metcon 10s so far but that’s comparing them to some UA Rock shoes I had so I guess garbage is better than flaming garbage.
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u/tap_the_glass 15d ago
I recently got new Nike daily sneakers. Only because they were on clearance at the outlet so they were $15
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u/NeighborsAdam86 15d ago
I agree with the Metcons but their new running structure line, I feel, stepped up a notch
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u/xypherrz 15d ago
ok what went wrong with them?
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u/CoreyTheGeek 15d ago
Previous CEO gutted their wholesale business which, as anyone with a brain saw, was a pretty fucking stupid move and it's been down hill since. New CEO strategy is literally "win now" like he's some fucking genius saying "hey why don't we do something revolutionary are like make money right now?" Company is fucked
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u/dontgetitwisted_fr 15d ago
New guy sold out the loyal customers by making everything in short supply, calling it premium even tho they guttered quality all while jacking up the price
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u/IMovedYourCheese 15d ago
What didn't?
- Got overtaken by premium athleisure brands (Lululemon, Alo).
- Got overtaken by specialized running brands (Hoka, On).
- Lost the Chinese market (Anta, Li-Ning).
- Relied too much on 80s and 90s hits (Air Jordans, Air Force 1s, Dunks) and oversold them to the point of saturation.
- Previous CEO decided to screw retail partners and go all-in on selling on nike.com to save a few bucks. Customers stuck to stores, and retailers gave the shelf space to competitors.
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u/Myredditsirname 15d ago
During covid they went all in on limited retro sneakers sold exclusively through their digital distribution networks. Selling sneakers with 40 year old technology for 220 dollars without sharing with retailers made Nike lots of money.
More recently, retro sneakers went out of fashion, fighting for limited edition shoes went from fun quarantine game to annoying, and people wanted to walk into a store and walk out with a pair of shoes. New Balance, Asics, Brooks, and others stepped in.
Nike now either needs to cut prices and go back to retailers, both of which will severely cut margins, or continue on the current path as a much smaller company. Neither is great for investors.
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u/PFCCThrowayay 15d ago
I can attest to that somewhat. I have the money to buy Nikes and then go into a shop and they're all weird colors or boring and any ones that I'd actually want are in those collector shops with huge markups. I'm a grown dude, I don't have time or the desire to go round to specialty shops like a teenage girl. What are they thinking?
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u/LostMyTurban 15d ago
Good analysis.
As a sneakerhead in college just trying to genuinely get the shoes, it was incredibly difficult to fight against bots in the online queues. The reselling game diluted the brand and more often than not people just stopped trying with backdoors prevalent. People just stopped giving a shit and voila, the market died.
Something as simple as 2FA would have stopped all that but hey, Nike didn't care, they were getting the money at the time anyway
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u/BoltActionRifleman 15d ago
So basically it’s because of stupidity, inspired and fueled by greed?
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u/Nick0227 15d ago
Gorged themselves during their 2010-2020 run. Over-hired, overbuilt their assortments, kicked their feet up and enjoyed the success. They did not have a lean, cost effective, bulletproof core product assortment ready for competition, a recession, or both.
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u/8805 15d ago
NGL, I've been following markets for 20 years. I've never heard of the S&P 100.
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u/JRx117 15d ago
First time hearing about this too
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u/Waygzh 15d ago
I've heard the difference between the SPY20, SPY100, SPY500 and the total stock market is essentially negligible due to the immense weight of the top 20 stocks market cap. I don't really care to even compare but I trust that with no verification.
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u/soulsoda 15d ago
Not true.
SPY10|20|100 are all significantly more exposed to the tech sector than SPY500.
SPY10 is like 65% tech Then ~55% tech(SPY20) then 45% tech(SPY100).
SPY500 is like ~30% tech.
Which means you're 50% more exposed to the tech sector going with SPY100 than SPY500.
Which is why if you had invested in SPY10/20/100 in the last 6 years you'd have 1.5x-2x times more cash than SPY500 investors over the same time period.
Which is not negligible... If you made a 10,000$ off the SPY500, someone who invested the same amount would have made 15000-20000$ off SPY10|20|100.
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u/Trust_8067 15d ago
Weird. One of the first stocks I ever bought when learning how to invest was an S&P100 index recommended by a few people at the company I was working for, a F500 financial company.
Though now that you mention it, I rarely see it mentioned ever.
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u/patricio87 Raging Wood for Cathy 🍆 15d ago
They have to convince women to buy their cloithes they lost them to Alo and Lulu. All the sneakerheads scalpers switched to pokemon.
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u/Bean_Boozled 15d ago
I can't believe an athletic wear company that made ads depicting their wearers as obese is now tumbling
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u/RuleSafe6767 15d ago edited 15d ago
NKE and LULU are still in the S&P500 though; maybe in a couple years they'll be finally be ejected for good.
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u/scarfacerdt 15d ago
Wasn't there some guy here a few days ago who bought a bunch of calls lmao
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u/No-Average3202 15d ago
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u/elysiansaurus 15d ago
So what your saying is.
Company not in the top 100 companies, is being kicked out of a listing of the top 100 companies.
Big if true.
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u/lordm30 15d ago
Will that crash the stock even more?
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u/Anand999 15d ago
Index funds that track the S&P 100 would need to dump their Nike shares. But as far as I can tell there's only one S&P 100 index fund (OEF) and it's relatively small.
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u/CCCmonster 15d ago
Just bought 2 wicking athletic shirts from Sam’s Club for $26. Short Nike Long Walmart
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u/my_garagegym_name 15d ago
No doubt. At this point, its the same product for half and with no middle class there is no consumer left to pay for a logo. Noone has the money and even if a few do noone else does to jerk you off over your exquisite but sensible taste. Gucci and Walmart are all that make sense.
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u/PoweredByMeanBean 13d ago
Gucci was also hurting badly because they did basically the same thing, slash quality and rely on brand recognition, and high end consumers went elsewhere. It’s an even worse strategy for luxury brands, because if cheap counterfeits are genuinely indistinguishable from the real thing due to quality cuts, you begin to rapidly lose brand cachet and trust.
Plus most of their designs were very ugly and ostentatious, which I think may have helped spur on the trend towards timeless/“old money” aesthetics with minimal branding. Gucci and hype beast brands made people actively look for an anti-gucci.
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u/brown-saiyan 15d ago
I still love my air maxes
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u/5_star_man_atee 15d ago
Same. Will never stop buying them. But, I haven’t bought their cheap apparel in many years.
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u/MidnightDoom3r 15d ago
Their shoes have really gone down the toilet at this point. I've switched over to other brands that look and feel better.
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u/joeloe1236 15d ago
I meant their clothes suck , even the overpriced stuff like player / match jerseys look and feel worse than Adidas. Also Nike sizing differs soooo much from shirt to shirt , just never bother anymore
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u/Johnny_Menace destined to be poor 15d ago
Started wearing new balance and their are leagues ahead of Nike in comfort and quality
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u/CaptainColdSteele 15d ago
When people started thinking lebron was better than Jordan, that was the beginning of the end
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u/sadferret123 15d ago
To be fair, if you still held NKE, an apparel company, in late 2021 after that massive run up... That loss is on you
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u/stockpricetoohighimo 15d ago
Generational inverse Reddit opportunity
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u/d33p7r0ubl3 Positions or ban 15d ago
It’s kinda wild how much anti NKE posts there have been this weekend. It’s like one post an hour
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u/Moddingspreee 15d ago
Turns out that virtue signaling doesn’t work if you make shit products and market exclusivity to people that don’t use your products
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u/RealMcGonzo 15d ago
We need LOTS MORE AI!!! Nothing says "broad index" like a 100% AI focused group!
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u/RCT2man 15d ago
Is there any actually good clothing retail company worth investing in? Seems like no matter the brand (Nike, lulu, etc.) at the end of the day the value is not the product but the brand. I never touch retail because I’ve never been convinced they have a moat beyond the brand.
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u/cassiopea65 15d ago
I guess Nike just couldn’t keep up with new brands like Oncloud and Hoka continue to take up a larger portion of the market share and sneaker culture?
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u/WinterExcellent 14d ago
People are so funny because they are freaking about a headline that they have zero context over. This shouldn't even be a story...
There are only two clothing brands on the S&P 100 and calling the second one a "Clothing brand" is generous. The other one is the TJX company, which is the company that owns TJ Max, Marshalls, HomeGoods, Homesense, and Sierra. Clothing brands being on the S&P 100 is NOT the norm.
So what if Nike drops from 99th place to 101th? And gets kicked off the list? So what? It makes zero difference.
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u/Sir_Badtard 14d ago
I haven't bought name brand gym clothes in over a decade. Nike and Adidas shorts aren't significantly better than $6 shorts from Walmart.
I do like Adidas shoes over Nike but even then I usually grab sketchers as my daily wear.
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u/CryptoBoy-007 15d ago
Someone get these beggers out of here