Prediction: Mark Parker is let go or the transition started (good holiday season will not save him). Bad holiday season will certainly ensure an inglorious exit for him. Probably another round of layoffs in Jan /Feb time frame. Apple or Amazon buys Nike for cash truest starts divesting off of crappy business lines.
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Sounds like MP is gonna stay for a while per his last post.
Good thread. Nothing else to add.
Did you pay attention to the A class shares that PKs son T inherited along with the board of director seat? A sale of the company will never ever happen. Put that thought to rest.
Second, MP is now Chairman and looking for a new CEO. You may not like the outcome of the latest layoffs but stockholders do, and their vote determines the board seats, which has always has determined the approved direction and planning of major business decisions.
Third, Apple and Amazon are temporary kingpins of the 20teens. Something unforeseen will destroy their dominance, it's just a matter of time.
I hate to tell you all but in the 10 year view of this companies history and stock, the layoffs are a poorly planned tragedy of expansive tribal knowledge but..... we will live and as far as the stock, this isn't even a blip on a 10 year chart. This company will likely be around in another 50-100 years.
Mark Parker has been with Nike since 1979 and has earned his position in the company. Unlike some of our other senior leaders, he's been through all the good and bad times, and he bleeds Nike. When he was elevated to CEO in 2006, Nike was a $14 billion dollar revenue company. In his command, we are now at almost $35 billion in revenue. While I understand the sentiment that the blame should go to the top when things go bad, I don't believe Mark is the problem. In my experience, I don't see the narcissistic and harmful behavior with Mark that has been exposed with some of the other C-level execs. Therefore, it would be a mistake to dismiss him for what is happening right now. Mark has always invested in innovation and feared that Nike would become a monolithic bureaucracy that can't adjust to the market. Some of those fears have come true, but I think he can lead Nike out of the storm. A few of the other leaders may need to be replaced, and Nike will have to get leaner and more agile. More layoffs may need to happen, hopefully in redundant areas, and with the folks that aren't committed to long term success for the company (verses temporary resume and bank account padding for themselves). And finally, Amazon and Apple technically might have the means to purchase Nike, but it seems like it would be getting far away from their core mission. If they were to get into athletic shoes and apparel, it seems like cheaper targets like Under Armour ($7 billion market cap) or even Adidas ($41 billion MC) would be easier to handle than Nike ($98 billion MC).
Let's think this crazy talk through a little bit. Apple or Amazon would never buy NIKE. It does not fit into their portfolio and would not be a strategic investment. The price NIKE would command means nobody would ever buy it. They can focus on fewer, better and get back to the basics laying off people and working lean. However, remember they went down before. If they figure out DTC growth they will boom again.
Stupid. Mark is not going anywhere until he decides to retire.