Just Did It

The athletic-shoe race is looking like a blowout. On Sept. 18, Nike announced fiscal first-quarter earnings of $164.8 million, up 55% from the year before and far better than analysts had expected. Nike also served up a 100% stock dividend. The news was a slam dunk for investors, who pushed Nike shares up by 7 1/8, to 99 3/8--an increase of 40% since the beginning of the year. Rival Reebok International's shares, meanwhile, are down 10% for the same period. With footwear orders falling and ad expenses high, profits are slumping at Reebok, and key managers are bailing out.

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