Taiwanese College Students' Purchase Intention Toward Chinese Sportswear Brands

Total Page:16

File Type:pdf, Size:1020Kb

Taiwanese College Students' Purchase Intention Toward Chinese Sportswear Brands TAIWANESE COLLEGE STUDENTS’ PURCHASE INTENTION TOWARD CHINESE SPORTSWEAR BRANDS A DISSERTATION SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE DEGREE OF DOCTOR OF PHILOSOPHY IN THE GRADUATE SCHOOL OF THE TEXAS WOMAN’S UNIVERSITY DEPARTMENT OF KINESIOLOGY COLLEGE OF HEALTH SCIENCES BY CHIN-HUNG YU, B.A., M.A. DENTON, TEXAS MAY 2017 Copyright © Chin-Hung, Yu, 2017 all rights reserved. iii DEDICATION For my dad, mother, sisters, and my wife, thank you for your never-ending patience and love. Without you, finishing this dissertation would not have been possible. iv ACKNOWLEDGMENTS I would like to express the deepest appreciation to my committee chair Dr. Weatherford, who has the attitude and the substance of a genius. She was continually encouraging, guiding, caring, patient, and provided me with an excellent atmosphere for completing my dissertation. Without her guidance and persistent help this dissertation would not have been possible. I would like to thank my committee members, Dr. Nichols and Dr. Rylander, whose work demonstrated to me their concern for my research by an “engagement” in providing advice. In addition, I want to thank to my professors Dr. Miloch, Dr. Graham, Dr. Chen, and Dr. Palmer. Dr. Chen was my professor during my undergraduate studies who encouraged and sent me to the United States to pursue my dream. Dr. Miloch was my doctoral professor who taught and encouraged me to finish the program. Dr. Graham was super nice and willing to help with my grammar and took time to read my dissertation. Dr. Palmer provided me the opportunity to work in Pioneer Hall and helped me to assimilate into American culture. I would also like to thank my parents, two sisters, and grandparents. They were always supporting me and encouraging me with their best wishes. Finally, I would like to thank my wife, Amanda Tang. She was always there cheering me up and stood by me through the good times and bad. v ABSTRACT CHIN-HUNG YU TAIWANESE COLLEGE STUDENTS’ PURCHASE INTENTION TOWARD CHINESE SPORTSWEAR BRANDS MAY 2017 This research aimed to study factors influencing Taiwan College students’ purchase intention toward Chinese sportswear brands and also examined the usefulness of the Cognitive-Affective Model of Buying Intention for predicting Taiwan college/university students’ purchase intentions toward Chinese sportswear brands. Using structural equation modeling (SEM), the study found that normative influence positively affected brand consciousness, and brand consciousness also positively affected emotional value. Brand consciousness neutrally affected perceived quality. However, perceived quality and emotional value both negatively affected purchase intention (PC= -0.5 & -0.1; p < .05). Although the findings of this paper cannot be generalized to other consumer products or other segments of society, results revealed that college students in Taiwan are less likely to purchase Chinese sportswear brands due to quality concern and lack of an emotional connection. In conclusion, Chinese sportswear brands need to focus on increasing product quality and their brand’s emotional attributes in order to be successful in the Taiwan sportswear market. vi TABLE OF CONTENTS Page COPYRIGHT ......................................................................................................... iii DEDICATION ........................................................................................................ iv ACKNOWLEDGMENTS ........................................................................................ v ABSTRACT ............................................................................................................ vi LIST OF TABLES .................................................................................................. ix LIST OF FIGURES ................................................................................................. xi Chapter I. INTRODUCTION ................................................................................................. 1 Significance of the Study ............................................................................ 12 Purpose ....................................................................................................... 13 Chapter Summary ....................................................................................... 13 II. LITERATURE REVIEW ................................................................................... 15 Sport Consumption .................................................................................... 15 College Student Consumption ................................................................. 22 Normative Influence ................................................................................... 24 Brand Consciousness .................................................................................. 28 Emotional Value ......................................................................................... 32 Perceived Quality ........................................................................................ 34 Definition of Perceived Quality .............................................................. 34 Measurement Methods of Perceived Quality .......................................... 39 Purchase Intention ....................................................................................... 41 The Relationships between Each Variable ................................................... 44 The Cognitive-Affective Model of Buying Information ......................... 44 III. METHODS....................................................................................................... 47 Hypotheses .................................................................................................... 47 Participants .................................................................................................... 49 vii Data Collection .............................................................................................. 49 Instruments .................................................................................................... 50 Data Analysis................................................................................................. 52 Pilot Study ................................................................................................. 52 Main Study ................................................................................................ 52 Summary ....................................................................................................... 56 IV. RESULTS ........................................................................................................ 57 Pilot Study .................................................................................................... 58 Reliability Analysis .................................................................................. 61 Main Study ................................................................................................... 62 Demographic Profile Respondents............................................................ 62 Descriptive Statistic Analysis of Factors................................................... 64 Summary of Factors ................................................................................. 67 Background Variables .............................................................................. 68 Hypothesis Testing and Structural Model ................................................. 74 V. DISCUSSION.................................................................................................... 78 Demographics ............................................................................................... 79 Five Factors .................................................................................................. 79 Background Variable toward Five Factors ................................................ 81 Hypotheses and Structural Model Evaluation ................................................ 84 Normative Influence –> Brand Consciousness......................................... 85 Brand Consciousness -> Emotional Value, Perceived Quality ................. 85 Perceived Quality -> Emotional Value .................................................... 86 Perceived Quality, Emotional Value -> Purchase Intention ...................... 87 Implications and Recommendations .............................................................. 88 Conclusion .................................................................................................... 90 REFERENCES ....................................................................................................... 93 APPENDICES A. IRB Approval Letter ....................................................................................... 120 B. Recruitment Script for Instructors ................................................................... 122 C. Consent to Participate in Research................................................................... 124 D. Survey Questions ............................................................................................ 126 E. Curriculum Vitae for Doctoral Students ........................................................... 129 viii LIST OF TABLES Table Page 1. The Lists of Promotion Partners with Peak Sport ............................................. 4 2. The Lists of Sponsorship from Chinese Sport Brands ....................................... 6 3. The Lists of Peak
Recommended publications
  • Earnings Release 4º Quarter of 2018
    Earnings Release 4º Quarter of 2018 Jundiai, March 11, 2019 - Vulcabras Azaleia S.A. (B3: VULC3) announces today its results for the fourth quarter of 2018 (3Q18). The Company’s operating and financial information is presented based on consolidated figures MENSAGEMand in millions of reais, DA prepared PRESIDÊNCIA in accordance with accounting practices adopted in Brazil and international financial reporting standards (IFRS). The data in this report refers to the performance for the forth quarter of 2018, compared to the same quarter of 2017, unless specified otherwise. HIGHLIGHTS Net Revenue: R$ 354.0 million in 4Q18, growth of 12.5.% compared to 4Q17, and R$ 1,249.0 million in 2018, down 1.1% compared to 2017. Gross Profit: R$ 133.7 milhões in 4Q18, growth of 11.7% compared to 4Q17, and R$ 448.6 million in 2018, down 7.0% compared to 2017. Gross Margin: 37.8% in 4Q18, down 0.2 p.p. in relation to 4Q17, and 35.9% in 2018, down 2.3 p.p. in relation to 2017. Net Income: R$ 46.2 million in 4Q18 vs. R$ 45.4 million in 4Q17, and R$ 152.1 million in 2018, down 19.5% compared to 2017. EBITDA: R$ 69.1 million in 4Q18 vs. R$ 70.4 million in 4Q17, and R$ 218.0 million in 2018 vs. R$ 296.5 million presented in 2017. VULC3 Quote (12/28/2018): Conference call: R$ 7.10 per share 03/12/2019 at 10 am (Brasilia time), at 9 am (New York). Number of shares Common: 245,756,346 Telephones Brazil: Market value +55 (11) 3193-1001 R$ 1.74 billion +55 (11) 2820-4001 Investor Relations IR email: [email protected] Pedro Bartelle (IRO) Vulcabras Azaleia IR Website IR Telephone: +55 (11) 5225-9500 http://vulcabrasazaleiari.com.br/ 2 MESSAGE FROM MANAGEMENT 2018 brought many difficulties, but also brought the beginning of a significant partnership for the future of Vulcabras Azaleia.
    [Show full text]
  • Xtep International (1368 HK)
    Xtep International (1368 HK) Rating Maintain BUY A soft 3Q19 but still on the right track Target price HK$6.34 From HK$6.83 Current price HK$4.44 Upside.+42.7% Soft 3Q19 triggered sell off, still on track to achieve FY19E guidance Company Update Xtep posted a relatively soft 3Q19 operational data, with both SSSG and retail sales slightly decelerated to ~10% and ~20% Yoy (vs. mid-teens/>20% in 2Q19), 23 October 2019 with retail discount widened to 22-25% (vs. 20-25% in 2Q19). Xtep’s share price tumbled 16% after the release. Xtep attributed the mild slow down to warm Hayman Chiu weather, which hurt the retail sales of the newly launched fall winter products. [email protected] Xtep added that retail performance in the first half of October returned to similar levels as in July/August with similar retail discount in 3Q19, while inventory level (852) 2235 7677 continue to stay at a healthy level of ~4 months. Trading Data Though having faced a mild 3Q19, we believe Xtep is still on track to achieve its 52-Week Range (HK$) 6.74/3.81 FY19E revenue growth guidance of ~20%, driven by low teens growth in shoes 3 Mth Avg Daily Vol (m) 10.19 and ~30% growth in apparel, while keeping a stable GM in our view. No of Shares (m) 2,499.7 Market Cap (HK$m) 11,524.9 JV with Wolverine, K-Swiss and Palladium still in ramp up/ restructure Major Shareholders (%) Group Success (54.1%) stage, negligible contribution in the near term Auditors Ernst & Young Result Due FY19: Mar 2020 The acquisition of E-Land Footwear USA (incl.
    [Show full text]
  • Xtep International Holdings Ltd Target Price: HKD5.20 Price: HKD3.21 Attractively Priced As Concerns Are Overdone Market Cap: Usd918m Bloomberg Ticker: 1368 HK
    Company Update Hong Kong 24 January 2017 Consumer Cyclical | Sportswear Buy (Maintained) Xtep International Holdings Ltd Target Price: HKD5.20 Price: HKD3.21 Attractively Priced As Concerns Are Overdone Market Cap: USD918m Bloomberg Ticker: 1368 HK Maintain BUY on Xtep with a revised TP of HKD5.20 (from HKD5.70, 62% Share Data upside) due to our lower earnings forecasts. We keep our upbeat view, as: Avg Daily Turnover (HKD/USD) 10.1m/1.32m 1. We expect recurring NP growth to pick up to double-digit levels in 52-wk Price low/high (HKD) 3.15 - 4.64 FY17, after being flattish in FY16; 2. Its FY17F P/E of 9x is undemanding, and at a 20% discount to the Free Float (%) 40 sector average of 11x; Shares outstanding (m) 2,149 3. Its FY17F dividend yield of 7% is also generous. Estimated Return 62% Distributor flattening exercise. We now estimate accounts receivable (AR) Shareholders (%) provisions of about CNY50m in 2H16 from nil (1H16: CNY64m), as a part of Mr Ding Shui Po 60.3 Xtep International Holdings’ (Xtep) distributor flattening exercise. Xtep is granting longer credit terms to its Tier-1 and Tier-2 distributors so they have more cash to take over the operations of distributors in Tiers 3-5. Xtep expects such provisions to be written back once credit terms are re-tightened, as these Share Performance (%) distributors have repaid to date. We also expect inventory provisions from the restructuring of Xtep Kids, although done on a smaller scale as Xtep Kids YTD 1m 3m 6m 12m represents less than 5% of total sales.
    [Show full text]
  • Company Report Hong Kong Equity Research
    Monday, November 16, 2015 China Merchants Securities (HK) Co., Ltd. Company Report Hong Kong Equity Research 361 Degrees (1361 HK) Eugene MAK Lewis WONG 852-3189 6343 852-3189 6160 Attractive risk/return driven by strong sportswear sector [email protected] [email protected] ■ 361 Degrees (361) has been relatively overlooked despite the current sportswear sector upcycle due to company specific risks. WHAT’S NEW ■ We view the realization of the risks to be unlikely and hence 361 Assume coverage to be undervalued, making it a potential laggard play ■ Attractive risk/reward given 9x FY16E P/E vs 13x sector average BUY and earnings growth outlook. Assume coverage with BUY rating Previous N/A Riding the sportswear upcycle wave Price HK$2.99 We expect a FY15E/16E/17E earnings growth of 20%/11%/14% YoY with 12-month Target Price HK$3.61 (+21%) upcoming share price catalysts from i) FY15 annual results and ii) double (Potential upside) digit sales fair value YoY growth figures to be maintained for its upcoming 3Q/4Q16 sales fairs. Earnings growth will be driven by FY5E/16E/17E Previous N/A revenue growth of 11%/14%/13% YoY as China’s sportswear sector Price Performance continues to turnaround from increased consumer demand (from (%) increased demand in sports performance products as health awareness 60 1361 HSI Index grows and participation in sports by the Chinese increases). As one of the leading Chinese sportswear brands, we expect 361 to continue to 40 benefit from this sector upcycle which can be seen through successive 20 improvements in 361’s SSSG (1Q14’s 2% to 3Q15’s 8%) and sales fair figures while channel inventory remains healthy at 4x inventory-to- 0 monthly sales.
    [Show full text]
  • Xu's Sport Company Limited 許氏體育有限公司 Peak Sport Products Co., Limited 匹克體育用品有限公司
    THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION If you are in doubt as to any aspect of this Scheme Document, the Scheme, or as to the action to be taken, you should consult a licensed securities dealer, or registered institution in securities, a bank manager, solicitor, or other professional adviser. If you have sold all your shares in Peak Sport Products Co., Limited, you should at once hand this Scheme Document and the accompanying forms of proxy to the purchaser or to the licensed securities dealer or registered institution in securities or other agent through whom the sale was effected for transmission to the purchaser. Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this Scheme Document, make no representation as to its accuracy or completeness, and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this Scheme Document. XU’S SPORT COMPANY PEAK SPORT PRODUCTS CO., LIMITED LIMITED 許氏體育有限公司 匹克體育用品有限公司 (Incorporated in Hong Kong with limited liability) (Incorporated in the Cayman Islands with limited liability) (Stock Code: 1968) PROPOSED PRIVATISATION OF PEAK SPORT PRODUCTS CO., LIMITED BY THE OFFEROR BY WAY OF A SCHEME OF ARRANGEMENT (UNDER SECTION 86 OF THE COMPANIES LAW) Financial Adviser to the Offeror Independent Financial Adviser to the Independent Board Committee Unless the context requires otherwise, capitalised terms used in this Scheme Document are defined under the section headed “Definitions” in Part I of this Scheme Document.
    [Show full text]
  • The Commercial Games
    The Commercial Games How Commercialism is Overrunning the Beijing 2008 Olympic Games August 2008 This report is a joint project of Multinational Monitor magazine and Commercial Alert. Multinational Monitor is a bimonthly magazine reporting critically on the activities of multinational corporations <www.multinationalmonitor.org>. Commercial Alert is an advocacy group that aims to keep the commercial culture within its proper sphere <www.commercialalert.org>. The report was compiled and written by Jennifer Wedekind, Robert Weissman and Ben DeGrasse. Multinational Monitor Commercial Alert PO Box 19405 PO Box 19002 Washington, DC 20036 Washington, DC 20036 www.multinationalmonitor.org www.commercialalert.org The Commercial Games How Commercialism is Overrunning the Beijing 2008 Olympic Games Multinational Monitor and Commercial Alert Washington, DC August 2008 Table of Contents Executive Summary……………………………..……………………………….. page 7 The Commercial Games…………………………..……………………………... page 11 Appendix 1……………………………………..………………………………… page 31 The Olympic Partner (TOP) Sponsors Appendix 2…………………………………...………........................................... page 41 The Beijing Organizing Committee of the Olympic Games (BOCOG) Sponsors International Federation Sponsors National Organizing Committee Sponsors National Governing Body Sponsors The Commercial Games 7 The Commercial Games How Commercialism is Overrunning the Beijing 2008 Olympic Games Executive Summary 1. The 2008 Beijing Olympic Games Everywhere else, Olympic spectators, have been referred to as the “People’s viewers and athletes, and the citizens of Games,” the “High Tech Games” and Beijing, should expect to be the “Green Games,” but they could be as overwhelmed with Olympic-related aptly described as the Commercial advertising. Games. A record 63 companies have become The Olympics have auctioned off sponsors or partners of the Beijing virtually every aspect of the Games to Olympics, and Olympic-related the highest bidder.
    [Show full text]
  • Operational Restrictions in the Retail Sector
    Operational restrictions in the retail sector Written by LE Europe, Spark Legal Network and Consultancy and VVA Consulting November – 2017 EUROPEAN COMMISSION Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs Directorate E — Modernisation of the Single Market Unit Directorate E.4 — Business to Business Services Contact: Maciej GORKA E-mail: [email protected] [email protected] European Commission B-1049 Brussels EUROPEAN COMMISSION Operational restrictions in the retail sector Directorate-General for Internal Market, Industry, Entrepreneurship and SMEs 2017 Europe Direct is a service to help you find answers to your questions about the European Union. Freephone number (*): 00 800 6 7 8 9 10 11 (*) The information given is free, as are most calls (though some operators, phone boxes or hotels may charge you). LEGAL NOTICE This document has been prepared for the European Commission however it reflects the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein. More information on the European Union is available on the Internet (http://www.europa.eu). Luxembourg: Publications Office of the European Union, 2017 ISBN number 978-92-79-73246-1 doi:number 10.2873/6677 © European Union, 2017 Reproduction is authorised provided the source is acknowledged. Printed in Belgium Image(s) © artist's name + image #, Year. Source: Fotolia.com (unless otherwise specified) EUROPEAN COMMISSION LE Europe , Spark Legal and VVA i Executive Summary Contents EXECUTIVE SUMMARY .................................................................................................. IV 1 INTRODUCTION ..................................................................................................... 1 2 IDENTIFICATION, MAPPING, AND DESCRIBING OPERATIONAL RESTRICTIONS IN THE RETAIL SECTOR - OBJECTIVES, SCOPE AND METHODOLOGY ...............................
    [Show full text]
  • Il Nome Del Prodotto. Marchi, Termini E Professioni
    Il Nome del Prodotto. Marchi, Termini e Professioni a cura di Capitoli di Assunta Caruso Maria Teresa Zanola Claudio Grimaldi Beatrice Ferrari Victoria Bogushevskaya Carmen Fiano, Cristiano Furiassi e Kosztasz Panajotu Virginia Formisano e Agnese Daniela Grimaldi Micol Forte e Alessandra Della Penna Aldo Frigerio e Maria Paola Tenchini Silvia Gilardoni Alessandro Maisto, Serena Pelosi, Michele Stingo e Raffaele Guarasci Francesco Nacchia e Vittoria Massaro Assunta Caruso e Claudio Grimaldi Università del Salento 22/2017 Numero speciale Il Nome del Prodotto. Marchi, Termini e Professioni a cura di Assunta Caruso Claudio Grimaldi 2017 LINGUE E LINGUAGGI Pubblicazione del Dipartimento di Studi Umanistici dell'Università del Salento. Tutti i contributi pubblicati in Lingue e Linguaggi sono stati sottoposti a double-blind peer-review. Numero 22/2017 COMITATO DI CONSULENZA SCIENTIFICA DELLA RIVISTA Orietta Abbati, Università di Torino Jean René Klein, Université catholique de Louvain Jörn C. Albrecht, Rupprecht-Karls-Universität Heidelberg Emil Lafe, Centro di Studi Albanologici, Tirana Pedro Álvarez de Miranda, Real Academia Española Elena Landone, Università di Sassari Carmen Argondizzo, Università della Calabria Anna Maria Laserra, Università degli Studi di Salerno Sara Augusto, Universidade de Coimbra Lucilla Lopriore, Università degli Studi Roma 3 Gabriele Azzaro, Università di Bologna Monica Lupetti, Università di Pisa Marcos Bagno, Universidade de Brasília Stefania Maci, Università degli Studi di Bergamo Jean-Philippe Barnabé, Université de Picardie (Amiens, Francia), France Aldo Antonio Magagnino, Professional literary translator, Italy Carla Barbosa Moreira, Universidade Federal Fluminense – Brasile Francisco Martín, Università degli Studi di Torino Simona Bertacco, University of Louisville, USA Daniela Mauri, Università degli Studi di Milano Roberto Bertozzi, Università di Chieti-Pescara Selena Millares, Universidad Autónoma de Madrid Silvia Betti, Alma Mater-Università di Bologna Sandro M.
    [Show full text]
  • SGI Template 8 Page TM
    For a FREE trial subscription to Sporting Goods Intelligence, click here. A subscription form will open in a browser window. ® E-mail our editors at E-mail our staff at [email protected] www.sginews.com [email protected] ANTA-LED GROUP MAKES FIRM OFFER FOR AMER SPORTS December 7, 2018 Vol. 35, No. 48 The cash offer of €40 per share values the equity at €4.6 billion and Anta will also assume €1 billion in Anta makes formal offer to buy Amer for debt. The tender is expected to commence on Dec. €5.6 billion in historic deal. 20 and last approximately 10 weeks and is subject Imports in Q3 are flat and tariff threat has not to receiving 90% of the outstanding shares. It is changed sourcing. not conditioned on financing, which is evidently Trade War cease fire for 90 days but major already committed. Amer’s board has unanimously issues still unresolved. endorsed the offer. Anta would control a 58% stake in Lululemon shows no signs of slowing as Amer with Fountainvest owning 15.8%, Lululemon digital powers big gains. founder chip Wilson 20.7% and Chinese gaming Genesco sees strength in Journeys but sale of giant Tencent 5.6%, according to the Financial Lids still up in the air. Times. The consortium said it had received positive Zumiez has strong Q3 and carries momentum expressions of interest from about 12% of Amer’s into Holiday. shares and has invited the current management Big 5 shareholder group again pressing for under CEO Heikki Takala to continue running the changes.
    [Show full text]
  • Presentation 23 August 2021 1H2021 Highlights
    Xtep International Holdings Limited (Incorporated in the Cayman Islands with Limited Liability) Stock Code: 1368.HK 2021 Interim Results Presentation 23 August 2021 1H2021 Highlights Revenue Net cash and cash equivalents RMB 4,135 m 12.4% RMB 2,580 m 31 Dec 2020: RMB 2,251 m Profit attributable to ordinary Interim dividend per Share equity holders HK 11.5 cents 76.9% RMB 427 m 72.0% Payout ratio: 60.0% 6,015 ~4 months Xtep branded stores Core Xtep brand in Mainland China and Retail channel inventory turnover overseas as at 30 June 2021 as at 30 June 2021 2 Financial Review Consolidated Income Statement RMB m 1H2021 1H2020 YoY change Revenue 4,135 3,679 +12.4% Gross profit 1,729 1,489 +16.1% Selling & distribution and general & 1,257 1,198 +4.9% administration expenses (“SG&A”) Operating profit 684 501 +36.5% Profit attributable to ordinary equity holders 427 248 +72.0% Basic earnings per Share RMB 17.1 cents RMB 10.1 cents +69.2% Gross profit margin 41.8% 40.5% +1.3% pts SG&A to revenue ratio 30.4% 32.6% -2.2% pts Operating profit margin 16.5% 13.6% +2.9% pts Net profit margin 10.3% 6.7% +3.6% pts 4 Consolidated Balance Sheet RMB m 30 Jun 2021 31 Dec 2020 Change Current assets 8,936 9,027 -1.0% Current liabilities 3,296 3,334 -1.2% Cash and cash equivalents (A) 3,758 3,472 +8.2% Pledged bank deposits and term deposits (B) 760 937 -18.9% Bank borrowings (C) 1,938 2,158 -10.2% Net cash and cash equivalents = (A)+(B)-(C) 2,580 2,251 +14.6% Net current assets 5,640 5,693 -0.9% Current asset ratio (times) 2.7x 2.7x No change Gearing ratio1
    [Show full text]
  • Company: NIKE, Inc (NKE) Nielsen Fields, CFA Action: Long W/ a May-2022 Price Target of ~$90 [email protected] IRR: 12% Over 5 Years April 25, 2017
    Company: NIKE, Inc (NKE) Nielsen Fields, CFA Action: Long w/ a May-2022 Price Target of ~$90 [email protected] IRR: 12% over 5 Years April 25, 2017 Executive Summary NIKE, Inc is a BUY given that I expect business value to compound annually in the low teens through early 2022. Shares at ~$56 allow the long-term investor to pay slightly below fair value for the world leader in athletic footwear and apparel, and at just 25% of the footwear and 5% of the apparel global market, NIKE’s competitive advantages in local economies of scale – on a product by product and geographic basis – in advertising and sponsorship will allow the company to grow earnings at a low double digit rate. My base case valuation has NIKE valued at ~$90 in five years – $65 today at an 8% discount rate – representinG an 11% annualized return includinG dividends. Not setting the world on fire however the risk/reward is attractive given you do not lose much in my bear case of $43 yet would double your money in my bull case of $120; a case still more conservative than what management outlined at their 2015 analyst day. 2006A 2007A 2008A 2009A 2010A 2011A 2012A 2013A 2014A 2015A 2016A SUMMARY INFORMATION (Figures in millions, FYE 5/31) Key Items: NKE Summary Financials: Current Price $55.9 Revenue 18,627 19,176 19,014 20,117 23,331 25,313 27,799 30,601 32,376 Shares Out 1,654 Growth 14.1% 2.9% (0.8%) 5.8% 16.0% 8.5% 9.8% 10.1% 5.8% Market Cap $92,388 Gross Profit 8,387 8,604 8,800 9,202 10,148 11,034 12,446 14,067 14,971 - Cash (6,160.0) Gross Margin 45.0% 44.9%
    [Show full text]
  • © This Is a Licensed Product of Ken Research and Should Not Be Copied
    1 © This is a licensed product of Ken Research and should not be copied TABLE OF CONTENTS 1. Asia-Pacific Athletic Apparel and Footwear Industry Introduction 1.1. Asia-Pacific Athletic Wear Market Size by Revenue, 2006-2012 1.1.1. By Athletic Apparel, 2006-2012 1.1.2. By Athletic Footwear, 2006-2012 2. Asia-Pacific Athletic Wear Market Segmentation, 2006-2012 2.1. By Athletic Apparel and Footwear, 2006-2012 2.2. By Geography, 2006-2012 3. China Athletic Apparel and Footwear Industry Introduction 3.1. China Athletic Wear Market Size, 2006-2012 3.1.1. By Athletic Apparel, 2006-2012 3.1.2. By Athletic Footwear, 2006-2012 3.2. China Athletic Wear Market Segmentation 3.2.1. By Athletic Apparel and Footwear, 2006-2012 3.2.2. Atheltic Apparel by Gender, 2012 3.2.3. Athletic Footwear By Product Categories, 2012 3.2.4. Athletic Footwear by Gender, 2012 3.2.5. China Indoor Athletic Wear Market 3.2.5.1. Indoor Athletic Wear Market Size, 2007-2012 3.2.5.2. Indoor Athletic Wear Market Segmentation, 2007- 2012 3.3. China Athletic Apparel and Footwear Industry: Trends and Developments Increasing Sports Participation The Post Olympics Effect: Leading to a Slowdown in Demand Emerging Fashion Trends in Sports Industry 3.4. Market Share of Major Players in China Athletic Wear Market, 2011 3.4.1. By Athletic Apparel, 2011 2 © This is a licensed product of Ken Research and should not be copied 3.4.2. By Atheltic Footwear, 2011 3.5. China Athletic Apparel and Footwear Market Future Outlook and Projections, 2013- 2017 3.6.
    [Show full text]