e of dividends -- over 57,000%.W

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 Air Max 90 Femme[/url] question with 100% certainty. But by viewing the matchup through three different lenses, we can get a better idea of what we're getting if we pay for shares [url=http://www.saltylemon.nl/Nike-Air-Max-97-Dames-c-58_59.html]Nike Air Max 97 Dames[/url] today.
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 Superstar Hombre[/url] bulk of Nike's growth is currently coming from. Sales were up significantly in [url=http://www.saltylemon.nl/Nike-Air-VaporMax-Dames-c-85_86.html]Nike Air VaporMax Dames[/url] Europe, the Middle East, and Africa (19% growth), China (24%), and Asia Pacific and [url=http://www.saltylemon.nl/Nike-Air-Max-90-Dames-Paars-c-49_50.html]Nike Air Max 90 Dames Paars[/url] Latin America (13%). North American sales, on the other hand, have been lagging; but the company's most recent quarter suggests that those concerns could be disappearing soon.
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 Air Max 90 Dames Bloemen[/url] growing brands in the apparel industry, gaining 93% in value in just one year, [url=http://www.saltylemon.nl/Adidas-ZX-750-Dames-c-16_17.html]Adidas ZX 750 Dames[/url] and totaling $2.6 billion at the time.
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 Air Max 2016 Dames[/url] year, Nike did have to make one large $1.2 billion payment on its debt. But between [url=http://www.saltylemon.nl/Nike-Air-Max-270-Dames-c-46_47.html]Nike Air Max 270 Dames[/url] 2014 and last year, the most it has had to devote to paying off the current portion of long-term debt was $330 million. That's a figure that's easily covered by the company's free cash flow.
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