Nike Maintains a strong Presence Outside the U. S.
Wed Jul 30, 2014 12:14 pm
• Master Writer | 32 Posts | 320 Points
Nike is one of the world's most widely recognized brands, which makes it has a significant pricing power. We all know that footwear and apparel are highly competitive businesses, with many producers of athletic-oriented products, but few of them can dominate like Nike does, as an example, the firm gets higher gross margins in footwear than its peers.nike schuhe online
The Nike Brand business has six reportable segments: North america, Western Europe, Greater China, Central & Eastern Europe, Japan and Emerging Markets. In China, several opportunities for expansion could arise. This is not new; Nike achieved continued margin expansion and is positioning well for improved profitability and sustained growth. It is already a leader with revenue of more than $2. 4 billion in 2013 in that country. Looking at profitability, the revenue growth by 10. 87% has outpaced the industry average. Earnings per share increased by 2. 6% in the most recent quarter compared to the same quarter a year ago.nike air max verkauf
Finally, let′s compare the best measure of performance for a firm's management: the return on equity. The ROE is useful for comparing the profitability of a company to that of other firms in the same industry. The company has a current ratio of 22. 28% which is higher than the one exhibit by its peers: Adidas AG, Kering and Belle International Holdings Ltd. In general, analysts consider ROE ratios in the 15-20% range as representing attractive levels for investment.nike air max herren
It is very important to understand this metric before investing and it is important to look at the trend in ROE over time. In terms of valuation, the stock sells at a trailing P/E of 26. 7x, trading at a premium compared to an average of 24. 4x for the industry. To use another metric, its price-to-book ratio of 6. 2x indicates a premium versus the industry average of 1. 71x while the price-to-sales ratio of 2. 55x is above the industry average of 0. 93x. These ratios indicate that the stock is relatively overvalued.nike free 3.0 schuhe herren
As we can see in the next chart, the stock price has an interesting upward trend in the five-year period. If you had invested $10. 000 five years ago, today you could have $31. 727, about a 26% compound annual growth rate. Nike's success could be attributable to product innovation, marketing and distribution strategies. Operations abroad will be a growth engine, providing opportunities for growing market share, although North america continues to post surprising revenue gains.nike schuhe damen