It's going to take more than a few bolting Knights and Airs to bring Nike (NYSE:NKE) down. Despite the NBA retirement of Michael "Air" Jordan and CEO Philip Knight's goodbye later this month, Nike marches on -- the way great brands do.
Knight will be going out with a bang as the company he helped build obliterated Wall Street targets for its November quarter by earning $0.97 a share on an 11% spike in revenue. With global future orders up a healthy 9%, Knight will also be handing over the company practically assuring that the next two quarters will fare well.
The fiscal second quarter featured plumper gross margins, a more cash-enriched balance sheet, and even some share repurchases to boot. You can't underscore its net margin improvement either, as the company had earned just $0.66 a share during last year's November quarter.
The stock has nearly doubled over the past two years. The market rewards a job well done. In a niche filled with worthy rivals such as Adidas, Reebok (NYSE:RBK), and K-Swiss (NASDAQ:KSWS), Nike has transcended the role of shoemaker to become one of the most recognized brands in the planet.
Yes, the company has had its share of operating hiccups. From its uneasy relationship with Foot Locker (NYSE:FL) to a dip in domestic sales in fiscal 2003, it hasn't always been perfect for Nike. But when the company is on, it's as graceful to watch as some of the star athletes who wear the company's garb and footwear.
Are you a fan of Nike? Wearing some Nike right now? How will the company fare without Knight? All this and more -- in the Nike discussion board. Only on Fool.com.
Longtime Fool contributor Rick Munarriz is sure that he has a pair of Nike sneakers somewhere. He does not own shares in any companies mentioned in this story. He is also part of the Motley Fool Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.
