Here’s Why NIKE (NKE) Stock Declined in the Third Quarter

Ensemble Capital Management, an investment management company, released its third-quarter 2022 investor letter. A copy of the same can be downloaded here. In the third quarter, the strategy outperformed its benchmark, the S&P 500, after three consecutive quarters. The strategy declined 2.6% compared to a 4.9% decline for the S&P 500 Index in the quarter. In addition, please check the fund’s top five holdings to know its best picks in 2022.

Ensemble Capital discussed stocks like NIKE, Inc. (NYSE:NKE) in the Q3 2022 investor letter. Headquartered in Beaverton, Oregon, NIKE, Inc. (NYSE:NKE) is a sportswear company that engages in the design, development marketing, and distribution of footwear, apparel, and other accessories. On October 17, 2022, NIKE, Inc. (NYSE:NKE) stock closed at $89.97 per share. One-month return of NIKE, Inc. (NYSE:NKE) was -12.16% and its shares lost 42.99% of their value over the last 52 weeks. NIKE, Inc. (NYSE:NKE) has a market capitalization of $140.766 billion.

Here is what Ensemble Capital specifically said about NIKE, Inc. (NYSE:NKE) in its Q3 2022 investor letter:

“NIKE, Inc. (NYSE:NKE) (-18.4%): The company spent most of the quarter trading about in line with the overall market. But on the last day of the quarter, they reported earnings that demonstrated strong consumer demand, but a series of geographic and product level inventory level issues. Given the start-stop nature of their production during COVID, strained global supply chains, and China consumers popping in and out of lockdowns, the company ended up with too much apparel inventory and announced they’d be slashing prices on certain items to reset inventory to appropriate levels quickly.”

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NIKE, Inc. (NYSE:NKE) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 72 hedge fund portfolios held NIKE, Inc. (NYSE:NKE) at the end of the second quarter which was 67 in the previous quarter.

We discussed NIKE, Inc. (NYSE:NKE) in another article and shared the list of best-undervalued stocks to buy. In addition, please check out our hedge fund investor letters Q3 2022 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.