Our view on Nike is the same RESULT except now the stock has fallen by about $10 per share and we think that's an opportunity to add shares to our position because like to buy high-quality stocks when the market puts them up for sale like it has this week.
We believe Nike's transformation from wholesale to a direct-to-consumer company continues to be underappreciated by the markets. Management's accelerated focus on digitization is creating a more engaging Nike with a stronger margin profile, as the company generates roughly 10 points of a higher gross margin rate on digital revenue vs. wholesale in a normalized period. The accretive benefits of this transformation were on full display when the company reported a monster bottom-line beat with its recent earnings result RESULTs.
Nike's shift to direct-to-consumer is also incredibly important for the current moment we are in. Rising Covid-19 infections both at home and abroad may force the consumer to avoid bricks-and-mortar retail and shop online, and this plays right into Nike's wheelhouse. Meanwhile, we know Nike is one of the most popular brands in apparel and is gaining share among teens per recent survey RESULT.
Last point of note, Nike's sales in China were strong last quarter, and we continue to like exposure to this region because the local economy has bounced back strong from the pandemic.