Cramer's Morning Take: Nike 10/1/25

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Jim Cramer (1:03)

I'm Jim Cramer, and you're about to hear a sample taken directly from today's CNBC Investing Club morning meeting. I do want to emphasize that we are buyers of things that we like regardless, because we don't think the shutdown has any lasting effects. And that brings me to Nike, where it's all coming true. Elliot Hill is an old hand at Nike, who recognized that they got away from sport, that they had ceased to have their raise on debt, and he's bringing it back one area at a time. He's done the United States coming around, but he's gonna have to tackle China, and we're not gonna be able to hit 90 on the stock until, and I do think it's 90 We won't get to 90 if he hasn't solved the conundrum of China.

Jeff Marks (1:51)

Yeah, look, China revenue is down 10, EBIT down big as well on a reported basis, but where they've focused first with the WinNow strategy, they are seeing positive results, running growth sequentially over 20%, back to the wholesale channel, returned to growth there, expected to grow over the fiscal year, the Nike brand store on Amazon, driving strong engagement and better than expected sales. They have this new partnership with Skims, which is Kim Kardashian's clothing brand. They just introduced a new product line last week. They're really bullish on that. And you know, their inventory is coming down to, down 2%.

Jim Cramer (2:36)

Yes, that's good. They still have something in that channel that is kind of like the factory outlet. Not good, gotta get it out there, gotta clear it all.

Jeff Marks (2:45)

Yeah, but they do continue to expect a healthy market place, expected by the end of the first half, fiscal year 2026, which they just reported the first quarter, so the current quarter here. So all good signs. We added to our position. We put on a small one ahead of the quarter. Wanted to see how Hill's turn around with tracking. Yeah, but enough here to have more confidence in the turn.

Jim Cramer (3:09)

I think that there is so much here that is involving the love of sport and bringing back the reputations of Nike as a thought leader in sports. It has become a follower who is just using its old stuff. It was really pathetic what was to be happening here. It's being shaken up rather radically. And I think that Elliott is shaking up in the way that it always was shaken up, which is each time they get rid of the old and go with the new. I was very, very excited when I finished the call.

Jeff Marks (3:39)

Yeah, he's a sports guy.

Jim Cramer (3:41)

He's a total sports guy.

Jeff Marks (3:41)

He's a sports guy. And he's bringing the brand closer to the athletes. You mentioned Matthew Boss. You've had him on Mad Money before. Raises his price target to $100 from $93. So obviously, a really bullish stance there.

Jim Cramer (3:57)

And he does matter. He's someone that I've relied on before. And I know Elliott pretty well. And I'm going to tell you that Elliott is first and foremost a fan of sports and the people who play them. And that's what's been needed. I think it became a technology company. It's not. It's just you. Start your day with my outlook on the daily market every morning at 1020 a.m. Visit cnbc.com/morningtake to access all the benefits of being a CNBC Investing Club member.

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