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Squawk on the Street

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

Squawk on the Street

CNBC

Investing, Business, News

4.1567 Ratings

🗓️ 1 October 2025

⏱️ 4 minutes

🧾️ Download transcript

Summary

Cramer says this stock won’t hit $90 unless it solves its China business. Become a CNBC Investing Club member to go behind the scenes with Jim Cramer and Jeff Marks as they talk candidly about the market’s biggest headlines. Signup here: cnbc.com/morningtake CNBC Investing Club Disclaimer

Transcript

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0:00.0

I'm Jim Kramer and you're about to hear a sample taken directly from today's

0:06.5

CBC Investing Club morning meeting.

0:09.0

I do want to emphasize that we are buyers of things that we like regardless because we don't

0:14.7

think the shutdown has any lasting effects and that brings me Nike, where it's all coming true.

0:23.6

Elliot Hill is an old hand at Nike who recognized that they got away from sport,

0:30.2

that they had ceased to have their raise on debt, and he's bringing it back one area at a time.

0:35.9

He's done the United States coming around, but he's going to have to tackle China.

0:40.3

And we're not going to be able to hit 90 on the stock until, and I do think he gets to 90.

0:44.7

We won't get to 90 if he hasn't solved the conundrum of China.

0:50.2

Yeah, look, China revenues down 10, EBIT, down big as well on a reported basis.

0:56.5

But, you know, where heat they've focused first with the Win Now strategy, they are seeing

1:03.1

positive results running, growth sequentially, over 20%.

1:08.4

Back to the wholesale channel. Return to growth there.

1:12.6

Expected to grow over the fiscal year.

1:14.6

The Nike brand store on Amazon driving strong engagement and better than expected sales.

1:19.6

They have this new partnership with Skims, which is Kim Kardashian's clothing brand.

1:25.6

They just introduced a new product line last week. They're really bullish on that.

1:31.8

And, you know, their inventory is coming down to, down 2%. Yes, that's good. They still have something

1:37.1

in that channel that is kind of like the factory outlet. Not good. Got to get it out.. Got to clear all. Yeah. But they do continue

1:46.3

to expect a healthy

1:48.1

marketplace expected by the end of the first half

1:50.3

fiscal year 2026, which

...

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