Sporting goods ODMs:Nike investor day implications,likely the largest opportunity since 2010
Conclusion: Nike’s accelerating investment in new product categories,efficiency, and international markets may bring its valuechain the largestopportunity since 2010. Our top pick in the valuechain is Shenzhou.
Updated guidance: overall in-line with DBe, sustainable China growth apositive surprise
Nike projects a high-single digit ppt revenue / mid-teens ppt EPS CAGR in thenext 5years. To highlight, Nike forecasts China revenue CAGR to be at low-tomid-teens ppt YoY into 2022(vs. previous guidance of a c.13% CAGR from2015to 2020). This likely indicates a more sustainable sales growth in Chinavs. our expectation.