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Nike’s Brand, Reach, Products, and Digital Strategy Should Allow It to Overcome Challenges
We view Nike as the leader of the athletic apparel market and believe it will recover from current challenges, such as a lack of recent innovation and soft demand for sportswear in key markets. 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 most markets, dominates areas 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.