Nike
...be the most profitable thus far out of the stocks that were required to be in the portfolio. Nike has surpassed analysts’ expectations for fiscal third quarter, reporting a 32% jump in earnings according to TheStreet.com. Earnings were 92 cents a share compared to 68 cents a share just a year earlier. The Nike shares were first purchased at $60.74 per share and at last close were up to $67.27 per share, an increase of 11.1% per share. A lot of things can be attributed to Nike’s success over the past three months.
Nike has been known for its ability to attract brand loyalty and already has a dedicated market share in place. By advertising to consumers at a young age, Nike is able to retain their loyalty for their teenage years leading up to their adult life. The introduction to consumers for customizing their own shoes has created a new competitive strategy. The rise in building its own retail stores will enable domestic revenue growth to outpace orders according to Andria Cheng, an analyst for MarketWatch.com. This will allow Nike to showcase its brand and give it a high level of brand control. Nike began selling its Converse line of shoes at Target Corp. under the label Converse One Star. This move will help target lower income families and increase market share. Nike also benefitted from the introduction of Air Jordan 23 basketball shoes. The retailer is also teaming up with Apple to work with major gym equipment manufacturers to make the Nike plus products, a line of running shoes that can sync to iPods to track workout performance, compatible with treadmills and other gym equipments.
Nike has just completed the acquisition of Umbro to gain a larger presence in the global soccer market in advance of the next World Cup. This has set up a head to head competition in the worldwide soccer market with Adidas, its main competitor....
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