Saw this article on Motley Fool and thought I would share it. Here’s a little blurb:
Nike (NYSE:NKE) is the undisputed champion in the athletic footwear arena. The sports giant currently dominates the U.S. fitness footwear market, holding 62% market share, with sales of its popular basketball kicks leading the charge.
At the end of Nike’s fiscal 2015 fourth quarter, the company had future orders for its Nike brand shoes that totaled more than $13 billion, up 2% from the prior year. However, one of Nike’s smaller and lesser-known rivals is looking stronger than ever today.
Once known for its knock-off sneakers and off-brand prices, Skechers is proving it is more than a one-trick pony. Skechers has sprinted past Adidas, New Balance, and others recently to grab the No. 2 brand share position in the U.S. athletic footwear market, behind none other than Nike.
That’s an incredible feat for a company whose total revenue of $2.4 billion last year was less than 9% of Nike’s $30 billion in revenue. Of course, it is important to remember that Nike’s fiscal 2015 revenue also included apparel and accessories sales, whereas Skechers is solely in the business of selling shoes.
I agree, Karen Nike is a giant and isn’t going anywhere anytime soon. I was just echoing the title of the article.
If you read it, the article doesn’t really bash Nike, it just notes Skechers’ amazing growth the past couple of years and how its shot up in both stock price and market share.
I hadn’t owned any Nikes since I was a kid, but I recently needed to urgently replace some indoor court shoes (non-marking, and unfortunately Skechers doesn’t offer those as far as I can tell), and I ended up buying some Nikes in a hurry. They are the worst shoes I think I’ve ever owned. Horrible. Terrible. Everything I think a shoe shouldn’t be: heavy as bricks, super stiff with no flex, just awful. I will never buy Nikes again.
I like very thin-soled shoes (I wear Xero brand shoes as my day-to-day and my running shoes, and they’re wonderful). I agree with the opinions that Nike has basically helped destroy the knees of a whole generation of runners with their awful shoes that push people into heel-stomping instead of using the balls of their feet as nature intended.
You might look at Nike Free 5.0-- I have friends that swear by them. Very light and flexible. I own a pair but they are not really for me. I bought them for running when I was training for a half-marathon and the heel rise is a bit much for my stride.
I have a pair of Nike soccer cleats that have held up wonderfully for over five years now, in all sorts of weather.
Haven’t tried Skechers yet, but I go through a lot of shoes and will check them out. My go-to running shoe is Asiics, FWIW. For hiking and outdoorsy stuff, for a long time I preferred Merrell, which seem indestructable, but then I started having problems with the soles coming unglued, and I haven’t cared for the changes in styling either.
I really like my two pairs of Nike frees for casual use and shorter runs and I have gone thru multiple pairs of Nike Pegasus. All have been great although I have to agree my favorite shoe for serious running are my Asiics. My daughter wbo is a serious soccer player (still playing in college and plays on a women’s Premier League team) really likes the multiple pairs of Nike cleats she has burned thru. I wouldn’t be too quick to dismiss their athletic shoes. Particularly in running, to each his or her own. Plus all those $160 soccer cleats are trickling down to my Nike shares. I do own Skechers shares and dress shoes and am extremely comfortable with both!
Nike has basically helped destroy the knees of a whole generation of runners with their awful shoes that push people into heel-stomping instead of using the balls of their feet as nature intended.
I agree. I always hated running b/c of shins hurting, knees hurting, etc. Got a pair of Merrils (barefoot) and even though my wife makes fun of the way that I “prance” instead of run, they feel great!
I try to keep my kids out of shoes as much as possible!
I just started reading “Accounting Principles, Volume II,” a beast of a book! And the very first thing I learned on the first page in the first paragraph was something about Nike. Something I never knew. (But something that makes sense). Now, this wasn’t something about its financials, the company, its value as an investment, or anything likely to help one in evaluating whether it is better to buy or sell the stock. Still, its an interesting fact to know (if you didn’t, already).
So, for the edification of anyone not familiar with the following tidbit (from paragraph one of "Accounting Principles, Volume II, Chapters 13-26, by Weygandt, Kimmel, and Kieso) here is what I learned yesterday about Nike:
In 1971, Nike co-founder Bill Bowerman put a piece of rubber into a kitchen waffle iron, and the trademark waffle sole was born.
Ok, the question has to be asked, Why would ANYONE put a piece of rubber in a waffle iron? Can you imagine his wife running into the kitchen screaming, “What is that smell and what have you done to my waffle iron?” Now that had to be a site.
Nike is a giant and isn’t going anywhere anytime soon. I was just echoing the title of the article.