For athletic apparel companies, here's a strategy: Don't split. Several of the world's biggest apparel companies have split
their stocks in the past year and have subsequently not performed well since.
Take Nike Inc (NYSE: NKE), which did a
two-for-one stock split in late December of 2015. Since the company split, it is down over 18 percent with fears that Nike is
experiencing slowed growth from increasing competition.
Skechers USA Inc (NYSE: SKX) at one point was one of
the best performing stocks of 2015. The company surprisingly became the No. 2 shoe seller in the country at one point, then the
stock did a three-for-one split in October 2015. It has dropped over 46 percent since.
Related Link: Finish Line's
New Plan Is Compelling, If It Works
Under Armour Inc (NYSE: UA) had experienced quite the
run up before its two-for-one stock split in April of 2016. Since then, its stock has steadily trended downward, more than an 11
percent decline.
Conversely, adidas AG (ADR) (OTC: ADDYY), which has
not split its stock, is up over 76 percent year-to-date.
Puma SE NPV (OTC: PMMAF) and VF Corp (NYSE:
VFC) have also not split; the former is up over 19 percent
year-to-date, but the latter is down over 12 percent this calendar year.
Full ratings
data available on Benzinga Pro.
Do you have ideas for articles/interviews you'd like to see more of on Benzinga? Please email feedback@benzinga.com with your best article ideas. One person will be randomly selected to win
a $20 Amazon gift card!
© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.