Few consumer goods companies have created the kind of returns on par with Nike The company went public in 1980 and has returned -- inclusive of dividends -- over 57,000%.With that success, however, comes the law of large numbers. Sporting a market capitalization of $110 billion, it's tough to assume that Nike can reasonably grow anywhere near as fast as it once did. Does that mean that smaller upstarts -- like today's challenger, Skechers -- are better buys?It's impossible to answer that [url=http://www.djim.fr/Nike-Air-Max-90-Femme-c-1_20.html]Nike
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Sustainable competitive advantage
We'll start with the hardest -- and most important -- variable to analyze: a company's sustainable competitive advantage. This is often referred to as its "moat", and we have an entire page devoted to examining moats here.
Because just about anyone can make shoes and other athletic apparel, the only real moat companies like Nike and Skechers have comes from their brand value. In that respect, Nike is the clear winner. According to Forbes, Nike's brand is the 16th most valuable in the world -- and first among apparel companies -- worth almost $30 billion.
That brand value has been extremely important on the international front, where the [url=http://www.amolan.es/Adidas-Superstar-Hombre-c-1_6.html]Adidas
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While Skechers' recent earnings forecast has investors worried, those are short-term concerns. Management's tempered forecast for the coming quarters has more to do with the timing of order shipments than slacking demand, but that didn't stop investors from bidding the stock down significantly last month.
The company has been making significant strides in terms of its brand value, and has clearly found a winning formula with consumers. In fact, in 2016 Brand Finance rated Skechers as one of the fastest [url=http://www.marjannesimoons.nl/Nike-Air-Max-90-Dames-Bloemen-c-66_67.html]Nike
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That said, at the end of the day, this is [url=http://www.saltylemon.nl/Adidas-NMD-Dames-c-1_2.html]Adidas
NMD Dames[/url] really about the overall value of each company's brand, and Nike's is a clear winner.Next, we want to get an idea for how well these companies would do if there were an economic downturn today. Obviously, people are going to be needing shoes and -- probably -- athletic apparel no matter the economic climate. That said, most people will tighten their purse strings and delay those purchases if they feel like times are really tight.Both of these companies fall solidly outside of the "Fragile" camp. Even though Nike's debt load is significantly greater -- relative to its cash position -- as Skechers, the company should have no problem making payments on that debt. This past [url=http://www.marjannesimoons.nl/Nike-Air-Max-2016-Dames-c-19_20.html]Nike
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