Competition is heating up and threats are coming from all angles. Adidas is perhaps the most alarming because it was previously written off as a non-threat but is aggressively and some of the young standouts in the draft. China is a major growth market for both companies. I do appreciate the time you took reading it. Nike, a brand that many athletes and non-athletes have come to use to define premium quality athletic products and services. Nike is blending classic materials like polyester and spandex and innovative manufacturing techniques in the way these materials are woven to create attractive shirts, sweatshirts and vests that offer.
Accordingly, Under Armour remains my top investment choice for the next decade as well as my largest holding. It understands as well which athletes to cover and how to exploit value from athletics. I do not see any other athletic companies currently that possess the kind of immense brand power that Nike and Under Armour do. The firm has seen much growth in its business strategy development and brand recognition over the past couple decades. Part of it is certainly connected to the rise of fitness-conscious consumers who look at athletics not only as a hobby but also as an all-around lifestyle. Nike has had ample cash for years and generates massive revenue on a yearly basis. You can opt out anytime.
This model is different from other equity research platforms where analysts usually disseminate research. Although Nike's growth is admirable considering its already massive size and global footprint, Under Armour is the superior growth company in all aspects. Nike operates in approximately 180 countries and is able constantly introduce new product lines with successful expansion. Dive Insight: Nike is keenly focused on reviving its Jordan brand, turbo-charging its customer experience concepts online and off, and amplifying designs by and for women, all of which are helping move the needle in North America. Best of luck to you all.
While Nike is still a fantastic growth company in many aspects, one that I would no doubt own if Under Armour did not exist, the failure to eliminate a viable competitor long ago will most likely end up hurting the industry titan in the long term. And their influencer role is not just being played out in the store but in their neighborhoods as well. A structural change that the sports retail industry is undergoing is the growing split between the serious athletic world driven by performance needs and the style-centric market looking for performance along with style. Intraday data delayed at least 15 minutes or per exchange requirements. The cobra golf brand produces and sells golf equipment offering innovative design such as 9 point face technology, adjustable flight technology, and baffler rail technology. Over the past three years, Adidas shares rallied nearly 200%, while Nike shares advanced just 32%. Adidas is up a shocking 76% so far as the company has found its groove and returned to prominence in the athleisure market.
Nike spent 31% of its earnings on that dividend over the past 12 months, and Adidas spent 30% -- which gives both companies ample room for future hikes. For the 1 year horizon, the algorithm has a signal strength and predictability indicator of 56. The price sensitivity especially becomes risky when entering recessionary downturns in the economy. The opinions expressed are those of the writer. The other two big players cannot say the same.
Last year, Nike's revenue rose 6%, as its earnings -- lifted by buybacks -- rose 16%. A huge competitive advantage of Nike is that it does not own any factories for production, rather outsources operations to hundreds of factories in countries like China, and maintains very tight supply chain control. They also sponsor local races and have relationships with charities and schools. In short, Nike has returned to a pool market in North America. However, Adidas posted 30% last year, while Nike's revenues rose just 3%.
Nike purchased brands like Cole Haan, Starter, and Umbro in the last few decades. All quotes are in local exchange time. Contributors to Seeking Alpha have to disclose their holdings if any in any stock they may recommend. Performance brands are trying to become more stylish by paying attention to color and design. For the current fiscal year, which ends on May 31, analysts expect its revenue to rise 4%, but its earnings to fall 9% on declining margins and its weakness in North America.
Today, it has been able to successfully implement both aspects, which is rare. While I believe both companies will do well in the long term, I think much of Under Armour's future growth will come at the expense of the great Nike. The tretorn brand provides leisure shoes, rubber boots, tennis balls, and other rubber-made products. Running store in Chicago, Illinois, U. We're fueling demand through the launch of innovative products. Passing fad or a lasting industry game-changer? However, Nike's forward dividend yield of 1. Perhaps the best example of Under Armour's increasing diversity is the company's recent targeting of female consumers.
And its new product designs have hit on these key themes in preparation for the fall and winter. Nike's gross margin fell 160 basis points to 44. Conclusion The strong brand equity and financial health of Nike Inc. Under Armour is increasing its direct-to-consumer business as well, which now makes up 39% of total revenue. Fast forward to where we are now with a share price just above the 52-week low and it is hard to not be interested in Nike even with the growth concerns. Signage is displayed outside a Nike Inc.