Jim Cramer on NIKE CEO: "He Needs to Reinvent the Entire Business"

NIKE, Inc. (NYSE:NKE) is one of the stocks Jim Cramer recently covered. Cramer highlighted the reasons why he would be a “buyer” of the stock. He said:

“Same deal with Nike. The previous CEO took a good company and turned it into an also-ran… Now that Nike old hand, Elliott Hill has come in, he needs to reinvent the entire business. First, he needs to go back to the old brick-and-mortar distribution network… It means new science and innovation have to be developed, which seems to have been obliterated under the previous regime. Third, he has to fix China, not a quick fix. Oh, and let me just tell you, there’s still inventory within the system, and that holds down earnings. But most importantly, he’s got management and the rank and file rowing in the same direction because he was much loved before he left… This is another stock though that’s been pulling back as analysts realize that the fast turnaround is impossible. Again, they don’t seem to understand that turnarounds do take a lot of time. This is precisely the moment when people want to give up on Starbucks and on Nike, which is why I want to be a buyer, not a seller of both.”

NIKE, Inc. (NYSE:NKE) is an athletic and casual footwear, apparel, equipment, and accessories company that sells its products under brands, including Nike, Jordan, and Converse.

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