Has Nike’s `Special’ Sneaker Strategy Gone Too Far?

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Dec. 19 (Bloomberg) –- Sterne Agee & Leach Analyst Sam Poser and Bloomberg’s Julie Hyman and Adam Johnson discuss whether or not Nike can continue to outrun its competition with Trish Regan on Bloomberg Television’s “Street Smart.” (Source: Bloomberg)

Is it time for you to get in?

We will go to our panel.

Julie, we are starting with you.

Nike has unveiled christmas themed shoes for three very important basketball stars.

Does every night he sneaker -- nike sneaker, are any of them actually really special?

That is the concern.

Nike has manage this process well, it introduces a new shoe, the ghana have shoe and they'd -- the gotta have shoe.

They do not have enough to keep out with the demand.

These are the three shoes that are coming out, lebron james, actually one of them should be kevin durant.

And kobe bryant.

All of them are going to be wearing them on christmas day and then they will go on sale the day after christmas.

There are actually six issues altogether that are going to go on sale in december.

They are supposed to be minted edition special types of sneakers.

So some folks in the industry have been questioning, you know, if you have all of these shoes that are limited-edition, at some point do people catch on and say, well, they do this so often.

You said a six limited- edition.

How many are they actually putting out and what are they charging?

Is very premium?

They are not that expensive.

It is just the cachet affect of selling the zen the resale value is quite high in many cases, -- of selling the shoe and the resale value is quite high in many cases.

Sam, seems a little gimmicky to me.

Does it work?

One, the data we have heard of holiday sales in the athletic space is very high.

The basketball businesses running up over the last few weeks.

We understand in the high double digits, over 20%. the running business is very strong.

What some of my contact said was that what nike is doing is offering more limited-edition shoes with less quantities.

They are keeping people hungry all the time.

So they are doing more but they are not putting as many in the marketplace.

Some of them are always bigger than others.

The michael jordan shoes are on fire.

The shoes that are launching this christmas, they did a similar thing last christmas, are a way to spend gift cards the day after christmas.

It is all very clean business.

So we like what this is doing.

Forgive me.

What was your thought?

Based on what the retailers are seeing for spring 2014, we're hearing the flow of it is a good product.

There is always a danger, i mean, sneakers can be very much a fan.

Nike has listed the test of time, -- has withstood the test of time, as we have seen.

You have upstarts.

How do they maintain their supremacy right now when there is all of this technology?

I know they are doing it as well but there is a sense that people want what is cool, what is new.

How does nike stay on top?

Nike has managed that pretty well over the past couple of decades.

Art of it has to do with technology and innovation, -- part of it has to do with technology and innovation.

The next phase of growth is going to come from apparel, converse, so not necessarily the nike brand.

The goal is to get to $36 billion in sales by the end of 2017. and again, a lot of the growth is going to come from apparel, women's apparel as well as the converse brand.

I used to have a pair of hot pink converse sneakers.

Let's go over to adam for a minute and take a look at what the stock is doing.

I bet they were hot.

Talk about hot, trish, we have to check out the chart.

Because look at this thing.

It is very clearly an uptrend going back to 2009. look at the breakout we got.

Up 55%. tough to argue with that.

The tricky thing, it is always scary when you get charts that look at this.

You feel like there is no support.

That is the home market.

This text has been automatically generated. It may not be 100% accurate.

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