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Nike is COLLAPSING - Why The Sneaker Giant is in Freefall-MP3 · Earn Your Leisure

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  Speaker 1: The stock market and this is a story I actually
• 0:02
  Speaker 1: saw people making their own content off of it and
• 0:06
  Speaker 1: it's become a thing because everybody, you know, Jermaine Dupri
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  Speaker 1: commented on it. Shout out to JD, man. He's just
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  Speaker 1: a solid, solid person. Stay down. But Nike is being
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  Speaker 1: dropped from the S & P 100 after falling 80%
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  Speaker 1: from its peak and, you know, losing $ 230 billion from
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  Speaker 1: market capitalization in that time period.
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  Speaker 2: It's tough.
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  Speaker 1: I went from $ 179 to $ 38. And a lot of
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  Speaker 1: people have always said, like, invest in companies that you
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  Speaker 1: use and that you know. And everybody uses Nike. Everybody
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  Speaker 1: knows Nike. But, um... This now is a bad piece
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  Speaker 1: of advice. Yeah, this definitely is not a company that
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  Speaker 1: you should invest in just because you like Jordans.
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  Speaker 2: Um... Which is a lesson in itself.
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  Speaker 1: Pre-falling.
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  Speaker 2: Yeah.
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  Speaker 1: Pre-falling. And we've talked about Nike a bunch of different
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  Speaker 1: times and what they need to do to change it,
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  Speaker 1: if they can change, if it's just over. So what
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  Speaker 1: is this? What's the deal with Nike dropping 80% from
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  Speaker 1: its all-time high?
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  Speaker 3: Can we get a round of applause for Ian for
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  Speaker 3: being a bad guy, but telling the truth? To executive
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  Speaker 3: management at Nike, this has nothing to do with you.
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  Speaker 3: I'm just breaking down the stock overall. I think... The
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  Speaker 3: underlying story that's not being talked about enough, and I
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  Speaker 3: belabor the part about Jalen, Kyrie, Don C, Kanye, mismanagement there,
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  Speaker 3: talent leaving out. America's economy is weak, and then you
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  Speaker 3: didn't do a great enough job marketing to the new generation.
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  Speaker 3: And I think there was a bunch of mistakes, and hindsight,
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  Speaker 3: of course, is 20-20. But The part that's really important,
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  Speaker 3: and Apple has done a great job of this. Google
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  Speaker 3: kind of slipped with the deep mind, and we talked
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  Speaker 3: about it last week. Keeping the talent in-house that makes
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  Speaker 3: the company special is really important. Sometimes leadership thinks, well,
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  Speaker 3: because we have the brand and we have the IP,
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  Speaker 3: that's all you need. And sometimes the levers that move
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  Speaker 3: a business forward are some of the unseen talent that
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  Speaker 3: you don't always see. And then this connection from who
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  Speaker 3: you're selling to versus who you are as an executive
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  Speaker 3: is really important. The thing that I loved about Steve,
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  Speaker 3: Steve was the creator, innovator. He uses his own product,
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  Speaker 3: uses his own, like ate his own dog food. There's
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  Speaker 3: a lot of executives who are just there to get
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  Speaker 3: a check. And you can see it reflected in the practices,
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  Speaker 3: the culture, the product line, like a bunch of products
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  Speaker 3: came out. And like, we're like, how long are you
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  Speaker 3: going to re-release Retro J's? to the point. And then
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  Speaker 3: of course, then you have the mishap with jaw. I
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  Speaker 3: get it. Um, but that piece of advice by what
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  Speaker 3: you use was always the dumbest piece of advice I
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  Speaker 3: heard because if that company doesn't move GDP and at
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  Speaker 3: one point it did, and if you don't see how
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  Speaker 3: it's tied into the overall economy, it doesn't matter that
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  Speaker 3: you like it or not. Um, your feelings inside of
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  Speaker 3: a company don't matter at all. And most executive leadership
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  Speaker 3: don't even care about the consumer. So, I think this
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  Speaker 3: is one of the greatest declines I've seen in my
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  Speaker 3: lifetime for a brand to be so revered. It's almost
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  Speaker 3: getting to BlackBerry-esque territory in terms of fall off. To
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  Speaker 3: see a brand be so beloved, like for those of
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  Speaker 3: you who don't know, before the iPhone, the BlackBerry was
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  Speaker 3: damn near a luxury item, a staple, a status symbol.
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  Speaker 3: Jordans were that. People were getting killed over Jordans in
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  Speaker 3: the 90s. Now most kids... Don't want any Jordan apparel.
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  Speaker 3: Like I said, at any point, I wouldn't touch it.
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  Speaker 3: I hope they get new members to the team to
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  Speaker 3: help shape the vision. But the retail sector overall is
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  Speaker 3: weak and most people want luxury items. And that's been
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  Speaker 3: the cause of a lot of decay there as well.
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  Speaker 3: But I'll send it to you guys.
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  Speaker 2: I think this is a teaching lesson in the statement
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  Speaker 2: of invest in what you know. I think it's start
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  Speaker 2: with companies that you know. And then you can teach
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  Speaker 2: inside those lessons. I just had this conversation a week ago.
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  Speaker 2: Tell me the companies that you know. I don't know
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  Speaker 2: any companies. Well, let's start with some companies that you
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  Speaker 2: know and you probably just subconsciously don't. Like Sneaker, they'll
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  Speaker 2: know Nike. Well, is that a good company to invest?
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  Speaker 2: So it leads to a deeper conversation rather than saying automatically,
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  Speaker 2: blindly just invest in what you know. Because I could say, like,
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  Speaker 2: what phone are you using? And somebody says Apple. Well,
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  Speaker 2: let me show you why that could be a great investment.
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  Speaker 1: So there's opportunity.
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  Speaker 2: It becomes like a segue to have a conversation about
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  Speaker 2: companies investing. more so than it is to like, this
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  Speaker 2: is what you should build your portfolio around. Nike is
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  Speaker 2: in trouble. I am a Nike head and they are
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  Speaker 2: in trouble. And I'm just saying that. I'm looking at
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  Speaker 2: the numbers here. For the fiscal year, they're down 6 billion.
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  Speaker 2: Their operating margin went from 15.6% in 2021 to 8%
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  Speaker 2: here in 2026. The price to do business has cost more.
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  Speaker 2: The profit that they're bringing in has shrunk. They are
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  Speaker 2: losing in China. They are losing here in America in
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  Speaker 2: terms of the advantage that they once had. I shouldn't
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  Speaker 2: even say advantage. The dominance that they once had. We
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  Speaker 2: spoke about it last week. When your lead athlete, being
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  Speaker 2: LeBron James, speaks out publicly about the direction that the
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  Speaker 2: company is going and the changes that need to be made,
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  Speaker 2: that is a telltale sign. He's on his way out
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  Speaker 2: of the NBA. Obviously, he won't be the marquee athlete
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  Speaker 2: for them going forward, and there's no idea of a replacement.
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  Speaker 2: And he's saying, look, yes, EYBL is a big thing,
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  Speaker 2: but we need to be going back into the inner cities.
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  Speaker 2: We need to be speaking to our kids, our youth,
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  Speaker 2: because they can push the brand forward. It can't go
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  Speaker 2: from top down. We need to start from the grassroots
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  Speaker 2: and build up. We've watched companies do that, and they've
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  Speaker 2: done it with success. I mentioned the athleisure department. which
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  Speaker 2: was important when we talked about Lululemon, all the companies,
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  Speaker 2: they have the partnership with Skims. Okay, that's cool. But
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  Speaker 2: it's kind of spiraling. Can it recover? I'm not sure.
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  Speaker 2: At this point, I'm not sure. BBM is, when you
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  Speaker 2: said it, I kind of laughed in my head like, damn,
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  Speaker 2: is this the moment that we're looking at for a
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  Speaker 2: brand that we grew up, people loved, we shopped with,
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  Speaker 2: we collected from, Is this the moment for them? I
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  Speaker 2: don't know, man. I don't know. Yeah.
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  Speaker 3: And y'all should have, y'all need to call Kanye.
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  Speaker 2: Well, Adidas calling him back now.
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  Speaker 3: For sure.
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  Speaker 2: They're calling him back.
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  Speaker 3: You can't lose generational talent and think everything's going to
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  Speaker 3: be good for the next generation, especially if you don't
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  Speaker 3: love the product.
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  Speaker 2: Yeah. Travis Scott. Shout out to Travis, but Travis Scott
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  Speaker 2: is not Kanye West.
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  Speaker 1: Jesus. The only one that can help. but yeah it's
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  Speaker 1: over but you know I mean it's still it's still
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  Speaker 1: a reputable brand it's not like.
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  Speaker 2: It's what does it mean it's over I.
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  Speaker 1: Mean the era of just you know yeah monopoly so
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  Speaker 1: I don't think you know sometimes you know things just
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  Speaker 1: change IBM at one point in time was the most
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  Speaker 1: dominant tech company IBM is still a viable company they
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  Speaker 1: still you know one of the largest companies in the
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  Speaker 1: world but they're never gonna be Microsoft So, you know,
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  Speaker 1: I think Nike, everything has a life cycle. That's important
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  Speaker 1: to understand as well as business owner. No matter how
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  Speaker 1: big your business is, eventually it's going to decline and
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  Speaker 1: eventually it's going to be over. So the key is.
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  Speaker 3: You always say it and I don't mean to cut
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  Speaker 3: you off, but the power of right partnerships to extend
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  Speaker 3: like IBM didn't adapt to the new age that was coming.
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  Speaker 3: Same with BlackBerry. Blackberry laughed at the consumer and said,
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  Speaker 3: we don't even need consumer. And you left the entire
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  Speaker 3: consumer base open to Apple. And it happened with IBM.
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  Speaker 3: Can you talk about, you think, the power of partnership?
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  Speaker 2: Can I just say this real quick? How many partnerships, though, bro?
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  Speaker 2: They have partnership after partnership after partnership. And I'm like,
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  Speaker 2: it's not changing anything. And they've done it.
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  Speaker 3: Partnership with Kanye and Kyrie. People don't want to say it.
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  Speaker 3: That Kyrie mismanagement and Kanye mismanagement.
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  Speaker 2: From a marquee standpoint.
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  Speaker 3: Some of the Kobe mismanagement.
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  Speaker 2: They try. I feel like they're trying. I'm going to
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  Speaker 2: try to get back to this point. But like, even
• 8:54
  Speaker 2: like the, the terrorist squad ones that just dropped. Shout
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  Speaker 2: out to Joe. It's like, Joe's hot right now. Let's
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  Speaker 2: get that TS1 out there. The Awake collab, what they
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  Speaker 2: did with the Jordan 6. They've done it. They're trying, right?
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  Speaker 2: It's just so fly. Did the Miami threes. They've tried it. They've,
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  Speaker 2: Travis has had a successful run, but it's like, bro,
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  Speaker 2: when is the innovation? Like, I know maybe it's Wimby.
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  Speaker 2: They see something with Wimby and it's like, yo, he's
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  Speaker 2: the guy that's going to change innovation for us.
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  Speaker 1: Or is it Caitlyn?
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  Speaker 2: I don't know what the, I don't know.
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  Speaker 3: But the point I want to make, and Rashad, you
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  Speaker 3: can talk about this. When you have a great partnership,
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  Speaker 3: the thing is to not mess it up the first time.
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  Speaker 2: Oh, that's important.
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  Speaker 1: Go ahead. That's important. You got to value your partners.
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  Speaker 1: You got to, Value, the collabs. But like I said, also,
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  Speaker 1: businesses have lifetimes. It's just like a person. No matter
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  Speaker 1: whether it's the Indian Tea Company or this Rockefeller Steel.
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  Speaker 1: I mean, you look at some of the greatest companies
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  Speaker 1: throughout human history, they had a life cycle. No company
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  Speaker 1: has been around. for 500 years and has been on
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  Speaker 1: top for 500 years or even 200 years. Even 100
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  Speaker 1: years is really pushing it.
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  Speaker 3: Spinoffs.
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  Speaker 1: Spinoffs for sure. For sure, spinoffs, but that's why you
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  Speaker 1: got to have spinoffs. So it's like Nike, they had
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  Speaker 1: a hell of a run. Like I said, they still
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  Speaker 1: are one of the largest companies in the world, but
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  Speaker 1: they had a hell of a run. If you think
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  Speaker 1: about Nike, where it started, this is over 40 years
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  Speaker 1: performing at a very high level, 30 years of complete dominance.
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  Speaker 1: That's an unbelievable historical feat that they were able to accomplish.
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  Speaker 2: It's trading at its lowest level since 1993 when Michael
• 10:40
  Speaker 2: Jordan retired for the first time. Yeah.
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  Speaker 1: Well, you know.
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  Speaker 2: That's pretty amazing.
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  Speaker 1: Hey, things happen.