NIKE (NKE) Declined as it Chose to Aggressively Mark Down Inventory

Ensemble Capital Management, an investment management company, released its second quarter 2023 investor letter. A copy of the same can be downloaded here. During the quarter, the strategy slightly outperformed with a gain of 8.76% compared to the S&P 500’s 8.74% gain. The strategy’s performance in the quarter was driven by big gains generated by small companies in the portfolio. In addition, please check the fund’s top five holdings to know its best picks in 2023.

Ensemble Capital Management highlighted stocks like NIKE, Inc. (NYSE:NKE) in the second quarter 2023 investor letter. Headquartered in Beaverton, Oregon, NIKE, Inc. (NYSE:NKE) designs and develops athletic footwear, apparel, equipment, and accessories. On July 27, 2023, NIKE, Inc. (NYSE:NKE) stock closed at $107.67 per share. One-month return of NIKE, Inc. (NYSE:NKE) was -2.45%, and its shares lost 6.31% of their value over the last 52 weeks. NIKE, Inc. (NYSE:NKE) has a market capitalization of $165.488 billion.

Ensemble Capital Management made the following comment about NIKE, Inc. (NYSE:NKE) in its second quarter 2023 investor letter:

“NIKE, Inc. (NYSE:NKE) (-9.7%): Nike struggled in the quarter as it continues to work off excess inventory built up during COVID and recalibrate its distribution channels between wholesale and direct-to-consumer selling models. Foot Locker, which is a major Nike retailer, fell after its second quarter earnings on news that it was aggressively marking down inventory, which investors took as a sign that Nike’s margins may suffer for the remainder of the year.”

kristian-egelund-wwqRpSNBPq4-unsplash

NIKE, Inc. (NYSE:NKE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 81 hedge fund portfolios held NIKE, Inc. (NYSE:NKE) at the end of first quarter which was 71 in the previous quarter.

We discussed NIKE, Inc. (NYSE:NKE) in another article and shared the list of out of favor stocks that hedge funds love. In addition, please check out our hedge fund investor letters Q2 2023 page for more investor letters from hedge funds and other leading investors.

Suggested Articles:

• 30 Best Places to Live While Working Remotely
• 25 Best Places for Singles to Retire
• 20 Best States to Live in After Retirement

Disclosure: None. This article is originally published at Insider Monkey.