A "fortunate confluence of changing fashion trends,
spiffy new products -- and some good old-fashioned cost
cutting" account for Nike's "rebound," according to Leigh
Gallagher of FORBES. One cause for optimism is Nike's new
"big-ticket item," the Tuned Air, as Venator has ordered
"more than a million pairs" of the shoe that retails for
$130, and "expects to sell" $200M worth, which is
"comparable to what it did with" the Air Jordan model. In
response to the changing fashion trends, Nike's fall sneaker
models, which hit stores in June, will have "bold color
combinations like orange and black." Gallagher writes that
although there are "still some soft spots," such as apparel
sales, Nike is "definitely cool again" (FORBES, 5/3 issue).
MONEY's Jeff Edgerton writes that part of Nike's rebound is
that the company is "lessening its reliance on $100-plus
'marquee' basketball shoes, with soccer and other footwear
and apparel lines taking up the slack." Robert Sanborn,
Manager of Oakmark, the "biggest mutual fund holder" of
Nike, said investors are again realizing that Nike is "one
of the great American brands, as well known around the world
as Coke or McDonald's." Also, Nike "should get big boosts
in 2000" from the European soccer championship and the
Sydney Games (MONEY, 5/99). On THESTREET.com, Suzanne
Kapner wrote on Venator's exclusive deal for the Tuned Air,
and reported that analysts and retailers are "cautiously
optimistic" that basketball shoes will make a comeback this
fall. One sporting goods exec: "We've seen double-digit
increases in basketball for April" (THESTREET.com, 4/19).
