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Cramer: Nike Is a Victim of Price Wars; There Will Be Others
Posted at 11:56 a.m. EDT on Monday, Oct. 31, 2016
Nike! Say it ain't so! Nike (NKE) gets taken to a sell at Bank of America Merrill Lynch; this, one of the greatest innovators, the dominant athletic apparel company of our time. What the heck? What's going on?
For years, Nike had the run of the table. Ever since Phil Knight blew away the competition, all laid out beautifully in his autobiography, Shoe Dog, and then taken to the next level by Mark Parker, Nike has had no peer in the business. Periodically, there'd be a challenger. I remember when we heard about Fila as a competitor. Or Reebok. Or Saucony. All pretenders.
And yes, Adidas (ADDYY) did have a good run for certain.
But they all died on the vine as Nike ran away with the business worldwide.
Suddenly, though, out of nowhere, Nike has not one powerful competitor, but two of them. Adidas has made a powerful return with its retro Stan Smith shoes. Most of you probably don't know who Stan Smith is. He was the great tennis player of my formative years -- the guy we all wanted to be in the seventies. His shoe has made a remarkable comeback.