Remember when Nike
While Nike is far from inconsequential these days, there is little to cheer about its first $10 billion year.
For starters, its $2.77 a share in earnings in the 2003 fiscal year was pumped up by a weak dollar, creating favorable currency translations on sales overseas. Domestically, which many would argue is the critical battlefield for the company as trends eventually carry over on a global basis, sales suffered. While it was able to gain some ground stateside during the fourth quarter, it still suffered a 10% dip over the course of the year.
Meanwhile, rival Reebok
Nike may be proud of its record year, but investors have every reason to worry about the asterisks behind that "record" year. That swoosh can be many things, but right now it is not indicative of the market's affirmation of the company's recent track record.