Chasing Nike (NYSE:NKE) in the footwear business has to be a frustrating exercise for the likes of Adidas (Nasdaq:ADDYY), Skechers (NYSE:SKX), and Puma.
In good times and bad, Nike's unmatched commitment to marketing and
product development translates into strong share, revenue, and profits.
Should Nike ever make a similar commitment to leading the apparel
market, who knows how much larger the company could get? In any case,
Nike doesn't look cheap today, but then it so seldom does.
A Solid End To The Year
Nike brought the fiscal year to a good end with fourth quarter results.
Revenue rose more than 7% as reported, or about 9% on a constant
currency basis. Growth was led by the tiny equipment business (up over
10%), while footwear sales rose almost 7% and apparel was up 6%. While
the North American market has remained a hot one for Nike (up 12%),
China has turned positive again.
Please read more on Nike here:
http://www.investopedia.com/stock-analysis/062813/nike-stretches-its-lead-nke-addyy-ua-lulu.aspx
Showing posts with label Puma. Show all posts
Showing posts with label Puma. Show all posts
Friday, June 28, 2013
Monday, May 2, 2011
Investopedia: Wooly And T-Dawg Go Gucci
Somehow it just does not seem too likely that Gucci's core customer base overlaps much with folks who call themselves "Wooly" and "T-Dawg", but France's PPR, which owns the esteemed Gucci label, is going to give it a go anyway. On Monday morning, the French holding company announced that it would be acquiring U.S. boardwear apparel maker Volcom (Nasdaq:VLCM), which was founded by the aforementioned Wooly and T-Dawg in 1991. (For background reading, see Using Consumer Spending As A Market Indicator.)
The Terms of the Deal
PPR is paying almost $608 million for the smaller clothing company, giving Volcom shareholders $24.50 a share in cash, or a 24% premium to Friday's close. That puts a valuation on Volcom shares of about 1.5x trailing sales and about 10.5x trailing EBITDA - not exactly premium pricing for a once-hot stock.
Read the full piece here:
http://stocks.investopedia.
The Terms of the Deal
PPR is paying almost $608 million for the smaller clothing company, giving Volcom shareholders $24.50 a share in cash, or a 24% premium to Friday's close. That puts a valuation on Volcom shares of about 1.5x trailing sales and about 10.5x trailing EBITDA - not exactly premium pricing for a once-hot stock.
Still, it is difficult to value a company like Volcom on a relative basis. Billabong is publicly listed in Australia and trades at an even lower valuation, Quicksilver (NYSE:ZQK) is struggling, and other once-popular boardwear companies like Vans and Ocean Pacific faded years ago and were acquired by the likes of VF Corp (NYSE:VFC) and Iconix (Nasdaq:ICON).
Read the full piece here:
http://stocks.investopedia.
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