3/6/2024 0 Comments Colors of autumn 94 nike talk![]() The top-selling Air Jordan model gets a new color scheme every three months. Year-round sellers, such as basketball and running shoes, are revamped quarterly. There are new baseball shoes in the spring, new tennis shoes in the summer, hiking shoes in autumn. Image is all, or nearly all, and as with savvy fashion sellers, there is a new model for every season. Since quality scarcely varies between shoe makers, Knight has taken the sneaker and transformed it into a status symbol. Knight's success has been based on the realisation that shoes long ago ceased to be a luxury and are on their way to becoming disposable consumer goods. It is about entertainment, fashion - an image much admired by impressionable young consumers. Buffett sees that Nike is not about shoes. His Geico Corp sold off its 3.5-million-share stake in Reebok last year, but as of its most recent filing it still holds its two million Nike shares. It is tempting to say that this kind of profitability can't last in such an easy-to-copy product. Phil Knight's 35% stake in Nike makes him the sixth-richest person in America, with a recent net worth of $5.3 billion. Whereas Nike and Reebok historically have been valued at 10 or 12 times earnings, Nike's P/E is now a Disney-like 30. Nike shares have risen fivefold since the beginning of 1994, while Reebok trades have been static for five years. This has resulted in huge profits on Wall Street. Its closest rival, Reebok, has grown just 9%, to $3.6 billion, with profits sliding by 43% to $145 million. Nike's sales and profits have grown 71% and 80% respectively in the past two years. That is a net profit margin of 8.5% on what seems like a commodity product. In the fiscal year to May 31, Nike sold $6.5 billion worth of sneakers, apparel and sports equipment, with net profits above $550 million. The power of the Nike label translates into impressive figures. Among the 1200 US brands tracked by Young & Rubicam, Nike ranks among the top 10, alongside Coke, Disney and Hallmark. In less than 10 years this also-ran sneaker company has emerged as one of the world's great brand names. Knight has built a big company and an enormous fortune on what a decade or so ago would have seemed an unlikely product: athletic shoes. Lithuanian's top player, Arvydas Sabonis, also endorses Nike like the Americans, his sneakers bear the company's omnipresent "swoosh" logo. But at any given sports event in the world, it is tough for Phil Knight to barrack too strongly. Knight has a vested interest in the game: eight of the 12 American players are paid to endorse Nike. It is early in the Summer Olympics in Atlanta, and Nike Inc's founder, Philip Hampson Knight, is exactly where he wants to be: about 10 rows off the court, watching the US basketball Dream Team pound its Lithuanian opponents. You may have to select a menu option or click a button.Unconventional advertising to redefine the image of Nike sports shoes has hit its target, and in the process lifted profits 80% in two years. Follow the instructions for disabling the ad blocker on the site you’re viewing.You may have more than one ad-blocker installed. You’ll usually find this icon in the upper right-hand corner of your screen. Click the icon of the ad-blocker extension installed on your browser.When it turns gray, click the refresh icon that has appeared next to it or click the button below to continue.Click on the large blue power icon at the top.Click the UBlock Origin icon in the browser extension area in the upper right-hand corner.It will turn gray and the text above will go from “ON” to “ OFF”. Click on the “ Ad-Blocking” button at the bottom.Click the Ghostery icon in the browser extension area in the upper right-hand corner.Switch off the toggle to turn it from “ Enabled on this site” to “ Disabled on this site”.Click the AdBlocker Ultimate icon in the browser extension area in the upper right-hand corner.“ Block ads on – This website” switch off the toggle to turn it from blue to gray.Click the AdBlock Plus icon in the browser extension area in the upper right-hand corner. ![]() Refresh the page or click the button below to continue.Under “ Pause on this site” click “ Always”.Click the AdBlock icon in the browser extension area in the upper right-hand corner.Adblock Adblock Plus Adblocker Ultimate Ghostery uBlock Origin Others
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