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 Skechers. Show all posts
Showing posts with label Skechers. Show all posts
Friday, June 28, 2013
Thursday, February 23, 2012
Investopedia: Can K-Swiss Stop The Bleeding?
The footwear industry is brutally competitive, and it looks like K-Swiss (Nasdaq:KSWS) is well on its way to being one of those cautionary tales. Although K-Swiss technically broke a five year streak of year-on-year revenue declines, free cash flow has declined six years running and the company's ongoing survival is no sure thing. While a hit product could turn things around relatively quickly, K-Swiss is starting to look like a longer and longer shot with each quarter.
A Fairly Lousy Fourth Quarter
Although K-Swiss did report 18% revenue growth for the fourth quarter (against expectations of a 3% drop), that surprising jump in sales did the company little good. Domestic sales rose more than 10% and international sales jumped almost 24%, but profitability was a major issue.
Read the full article here:
http://stocks.investopedia.com/stock-analysis/2012/Can-K-Swiss-Stop-The-Bleeding-KSWS-NKE-SKX-BWS-FL-FINL0223.aspx#axzz1mCOsX1dQ
A Fairly Lousy Fourth Quarter
Although K-Swiss did report 18% revenue growth for the fourth quarter (against expectations of a 3% drop), that surprising jump in sales did the company little good. Domestic sales rose more than 10% and international sales jumped almost 24%, but profitability was a major issue.
Read the full article here:
http://stocks.investopedia.com/stock-analysis/2012/Can-K-Swiss-Stop-The-Bleeding-KSWS-NKE-SKX-BWS-FL-FINL0223.aspx#axzz1mCOsX1dQ
Wednesday, January 11, 2012
Investopedia: A Better Brown Shoe Is Worth A Lot More
Brown Shoe (NYSE:BWS), the third-largest footwear retailer in the country and a major wholesaler to other retailers like Wal-Mart (NYSE:WMT) and Kohl's (NYSE:KSS), has seemingly been in perpetual turnaround for the better part of a decade. Although the company still has much to prove to the Street and the stock is off its lows, sustained operational improvements could make this stock a real winner in the years to come. (For more, see Earning Forecasts: A Primer.)
A Two-Part Business
Many readers will be familiar with Brown Shoe through its retail system. Brown Shoe operates the third-largest chain of footwear stores (Famous Footwear) after Collective Brands' (NYSE:PSS), Payless ShoeSource and Foot Locker (NYSE:FL), as well as specialty stores like Naturalizer. Perhaps less familiar is the company's wholesale business - a business that supplies brands like Sam Edelman to stores like Nordstrom (NYSE:JWN) and Saks (NYSE:SKS).
Read more here:
http://stocks.investopedia.
Tuesday, October 4, 2011
Investopedia: Wolverine Still A Winner
The footwear market has been mixed up for a while now and this quarter really has not been all that different. Struggling names like Brown Shoe (NYSE:BWS), Collective Brands (NYSE:PSS), and Skechers (NYSE:SKX) continue to have their issues, while companies like Nike (NYSE:NKE) and Wolverine (NYSE:WWW) continue to offer shoppers what they want even at higher price points.
Solid Third Quarter Performance
Wolverine had a bit of a problem last quarter when its outlook disappointed investors and they sold off the stock. As has been the case more often than not in this company's history, though, that conservatism was another set-up for an "under-promise, over-deliver" quarter.
Click the link for the full piece:
http://stocks.investopedia.
Solid Third Quarter Performance
Wolverine had a bit of a problem last quarter when its outlook disappointed investors and they sold off the stock. As has been the case more often than not in this company's history, though, that conservatism was another set-up for an "under-promise, over-deliver" quarter.
Click the link for the full piece:
http://stocks.investopedia.
Tuesday, September 27, 2011
Investopedia: Nike Asks, "What Slowdown?"
Few companies get as much credit for its brand value as Nike (NYSE:NKE), but brand value alone does not seem to explain why the company continues to do so well in an environment where consumers are looking left and right for bargains. The fact is, while Nike may not offer the cheapest options in its categories, the price gap is not as large as it used to be and the company has done a very good job of delivering value for money. (If you are interested in value investing, read The Value Investor's Handbook.)
A Good Start to the Fiscal Year
With 18% reported revenue growth and 11% constant currency growth, Nike is starting this fiscal year right. Nike logged 15% growth in North America, while Western Europe was flat on a constant currency basis and China was somewhat sluggish at 9% growth. Emerging markets continue to offer a lot of growth for Nike (up 24%), but are still a fairly small part of the total. On a product line basis, apparel was the laggard with 9% growth (hurt in part by difficult soccer comps), but footwear climbed 13%.
Read the full piece here:
http://stocks.investopedia.
A Good Start to the Fiscal Year
With 18% reported revenue growth and 11% constant currency growth, Nike is starting this fiscal year right. Nike logged 15% growth in North America, while Western Europe was flat on a constant currency basis and China was somewhat sluggish at 9% growth. Emerging markets continue to offer a lot of growth for Nike (up 24%), but are still a fairly small part of the total. On a product line basis, apparel was the laggard with 9% growth (hurt in part by difficult soccer comps), but footwear climbed 13%.
Read the full piece here:
http://stocks.investopedia.
Tuesday, August 30, 2011
Investopedia: Brown Shoe Needs More Execution, Less Excuses
I have been a fan of shoe retailer Brown Shoe (NYSE:BWS) for some time, having profitably owned it many years ago, but perhaps it's time to reevaluate that position. While many retailers are struggling in a difficult consumer spending environment, there are more worrisome issues between the lines. Brown Shoe is making mistakes that it should not be making and offering up fairly thin excuses in place of execution. Brown Shoe's problems are not unsolvable and the valuation is compelling, but shareholders have every right to demand more from this management team.
Another Poor Performance
This fiscal second quarter marks the company's third consecutive major miss with respect to analyst expectations. Revenue rose more than 7% in the quarter, but still came in slightly shy of the average analyst guess. The company's largest segment, Famous Footwear, saw sales drop almost 1%, while the wholesale business was up more than 24% and the small specialty segment rose about 1%.
To read more, click below:
http://stocks.investopedia.
Thursday, July 14, 2011
Investopedia: Expectations Gnaw At Wolverine
Would the real footwear market please stand up? Athletic shoe companies like Nike (NYSE:NKE) and Adidas (OTCBB:ADDYY) have been quite strong, and so has fashion-oriented Steven Madden (Nasdaq:SHOO). And then there are the likes of Collective Brands (NYSE:PSS), Brown Shoe (NYSE:BWS) and Skechers (NYSE:SKX) with weak sales and even weaker stocks.
Wolverine (NYSE:WWW) is on the stronger end of the range, even if the Street was not falling over itself to reward the company for solid second quarter results. Then again, if conservatism is the biggest sin of Wolverine, long-term shareholders should not be bothered by the quarterly noise. (For related reading, see Strategies For Quarterly Earnings Season.)
To continue, click below:
http://stocks.investopedia.
Wolverine (NYSE:WWW) is on the stronger end of the range, even if the Street was not falling over itself to reward the company for solid second quarter results. Then again, if conservatism is the biggest sin of Wolverine, long-term shareholders should not be bothered by the quarterly noise. (For related reading, see Strategies For Quarterly Earnings Season.)
To continue, click below:
http://stocks.investopedia.
Monday, June 13, 2011
Investopedia: VF Corp Laces Up Timberland
I've been thinking (and writing) for a little while now that several footwear stocks just look too cheap relative to even modest growth expectations. Apparently VF Corp (NYSE:VFC), one of the largest apparel makers in the world, agrees. Before the open of trading, VF Corp announced that it was acquiring outdoor footwear maker Timberland (NYSE:TBL) in a cash deal worth roughly $2 billion.
For VF Corp, this is an interesting expansion into new territory. For Timberland shareholders, it is a bittersweet end for a company that has not only been run well, but has frequently been lauded by the ethical investing crowd for its policies and philosophies. There's even something here for investors with no direct stake in either company - perhaps it is at least partial validation that footwear companies have traded too low in this latest market pullback.
The Deal to Come
Assuming that all of the necessary "i's" are dotted and "t's" crossed, VF Corp will acquire Timberland for $43 per share in cash. That represents a premium of 43% to Friday's closing price, a little less than $3 from the all-time high for the stock (set just back in late April, prior to a major fall due to an earning miss), and pretty much the full value for the shares.
To read the full piece, please follow the link:
http://stocks.investopedia.
For VF Corp, this is an interesting expansion into new territory. For Timberland shareholders, it is a bittersweet end for a company that has not only been run well, but has frequently been lauded by the ethical investing crowd for its policies and philosophies. There's even something here for investors with no direct stake in either company - perhaps it is at least partial validation that footwear companies have traded too low in this latest market pullback.
The Deal to Come
Assuming that all of the necessary "i's" are dotted and "t's" crossed, VF Corp will acquire Timberland for $43 per share in cash. That represents a premium of 43% to Friday's closing price, a little less than $3 from the all-time high for the stock (set just back in late April, prior to a major fall due to an earning miss), and pretty much the full value for the shares.
To read the full piece, please follow the link:
http://stocks.investopedia.
Friday, October 1, 2010
Crocs Back From The Dead
There was no shortage of people lining up to cheer the demise of Crocs (Nasdaq:CROX) as the stock plunged from an improbable high near $70 to under $2 in only about one year. This maker of distinctive (some would say ugly) footwear defied gravity and the howls of value-oriented commentators on its way up and there was almost a sense of palpable glee when the bubble burst.
Well, Crocs-haters may want to avert their eyes because Crocs is not dead. In fact, business seems to be pretty healthy, and that has fueled a rebound for the stock back into the teens. In fact, Crocs' stock has pretty much trounced the field for the past year. The past year has been a very strong one for footwear companies, but Crocs has more than doubled the one-year performance of the likes of Nike (NYSE:NKE), Timberland (NYSE:TBL), Skechers (NYSE:SKX) and K-Swiss (Nasdaq:KSWS).
Click below to continue to the full article.
http://stocks.investopedia.com/stock-analysis/2010/Crocs-Back-From-The-Dead-CROX-NKE-TBL-SKX-KSWS-DECK-UA1001.aspx
Well, Crocs-haters may want to avert their eyes because Crocs is not dead. In fact, business seems to be pretty healthy, and that has fueled a rebound for the stock back into the teens. In fact, Crocs' stock has pretty much trounced the field for the past year. The past year has been a very strong one for footwear companies, but Crocs has more than doubled the one-year performance of the likes of Nike (NYSE:NKE), Timberland (NYSE:TBL), Skechers (NYSE:SKX) and K-Swiss (Nasdaq:KSWS).
Click below to continue to the full article.
http://stocks.investopedia.com/stock-analysis/2010/Crocs-Back-From-The-Dead-CROX-NKE-TBL-SKX-KSWS-DECK-UA1001.aspx
Friday, September 24, 2010
Nike's Winning Formula
Although Nike (NYSE:NKE) is well-known as a global athletic brand juggernaut, it may yet still not get all of the credit it deserves. How many suppliers can dominate its retailers like Nike? How many companies have been so successful in their home markets and then ported over that popularity to overseas markets with hardly a hiccup? At best, it is a short list and would probably be made up mostly of much-larger companies like Coca-Cola (NYSE:KO) and Apple (Nasdaq:AAPL).
Looking at Nike's first fiscal quarter results, it seems like this story just keeps rolling on.
The Quarter that Was
Last year was a tough one, but Nike seems to be bouncing back well. Revenue was up 8% this quarter, with footwear and apparel posting similar growth rates of about 7%. Global futures, though, were up 13%, and that suggests an ongoing consumer recovery. That futures growth was strong in China and in emerging markets was not surprising, but North America futures were also very strong. Perhaps not so surprisingly, Western Europe and Japan were both soft (Japan in particular).
Click below for the full column:
http://stocks.investopedia.com/stock-analysis/2010/Nikes-Winning-Formula-NKE-ADDYY-SKX-KSWS-FL0924.aspx
Looking at Nike's first fiscal quarter results, it seems like this story just keeps rolling on.
The Quarter that Was
Last year was a tough one, but Nike seems to be bouncing back well. Revenue was up 8% this quarter, with footwear and apparel posting similar growth rates of about 7%. Global futures, though, were up 13%, and that suggests an ongoing consumer recovery. That futures growth was strong in China and in emerging markets was not surprising, but North America futures were also very strong. Perhaps not so surprisingly, Western Europe and Japan were both soft (Japan in particular).
Click below for the full column:
http://stocks.investopedia.com/stock-analysis/2010/Nikes-Winning-Formula-NKE-ADDYY-SKX-KSWS-FL0924.aspx
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