This week’s Stock of the Week is the largest company in its sector, but it still has room to grow both online and overseas.
Fleet of Foot
Nike Inc. (NKE) is using an array of strategies to keep from losing its dominance in the $320 billion global athletic footwear, apparel and equipment industry as consumers shift their buying habits.
It is using innovative new technologies, designs and materials to enhance its products and justify high prices in the face of competition from brands ranging from Adidas to Under Armour. It is improving the process of personalizing the shopping experience, including customization of products and a personal shopper service. It has begun to provide some of its products for sale directly to Amazon.com to cut into sales on the site by unauthorized third-party resellers of Nike products. And its sales in China, Western Europe and emerging markets are growing strongly. Currently more than half of its annual revenue comes from outside of the US.
Revenue of $34.35 billion in fiscal 2017 should grow to $36.08 billion in fiscal 2018 and $38.98 billion in fiscal 2019. And the dividend of $0.72/share/yr., recently yielding 1.2%, appears secure.
Fiscal year: May. Earnings per share: 2019 est./$2.81…2018 est./$2.43…2017/$2.51.
Andrew A. Arons is managing partner, Synergy Advisory Management Group LLC, Hackensack, New Jersey, which manages $150 million. SynergyAMG.com