Nike Battles Upstart Under Armour, High Expenses
The Street - about 3 years
NEW YORK (TheStreet) -- Nike , the world's leading manufacturer of athletic footwear, apparel and equipment, delivered good quarterly results with strong direct-to-consumer sales growth. In the meantime, its rival Under Armour has also impressed investors with a blowout performance. And in the coming quarter, Nike will likely continue posting strong numbers for direct-to-consumer sales.
Is Nike a slam dunk, then?
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Investors should remain cautious, as Nike is still struggling to rein in its expenses. Moreover, the business's performance in China and other emerging markets is far from satisfactory. The company has not reported any growth in combined revenues from these two regions in the first six months of the current fiscal year.
Nike's shares have risen by nearly 10% in the last six months, to $72.67. Its price-to-earnings ratio is 24.8, making Nike considerably cheaper than Under Armour by that me
The Street article