We're exiting a troubled stock after a muted quarter, while considering better options
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Jim Cramer's Charitable Trust is selling 1,600 shares of Nike at roughly $41 each at the opening bell, exiting the position entirely after realizing a 40% loss.
- Nike's most recent earnings quarter was muted, though the trust noted signs that management's turnaround strategy is gaining traction and that inventory and markdown discipline is improving gross margins.
- Nike management told investors the business is two quarters away from inflecting back to year-over-year sales and earnings growth, but the trust expects the recovery to be less sharp than previously anticipated.
- The trust acknowledged it was wrong about Nike's ability to fix the Greater China region in a timely manner and underappreciated the competitive pressure on the business.
- November's Investor Day is flagged as a potential catalyst if inventory is confirmed clean ahead of the event, though the trust chose not to wait and tie up capital for four to five more months in potential dead money.
- Proceeds from the Nike sale will be redeployed into stocks with cleaner growth stories, with a few buys planned later in the trading session.
Why it matters: Cramer's fund is cutting a 40% loss on Nike rather than waiting four to five more months for a potential November Investor Day catalyst, betting that the turnaround will be slower and shallower than hoped. The redeployment signals the trust sees better risk-adjusted growth opportunities elsewhere, and the call-out on Greater China and competition reflects ongoing structural concerns about Nike's international business.
