Camilo Posted October 13, 2004 Share Posted October 13, 2004 Nike bought Patagonia? You can think what you want about Patagonia or Patagucci or whatever, but it's a bad match. By Michael Kahn SAN FRANCISCO (Reuters) - With their simple design, rubber soles and canvas tops, Converse's Chuck Taylor All-Stars have long set the standard for retro cool -- a counterculture brand embraced by rebels from James Dean to Kurt Cobain. So Nike Inc.'s decision not to mess with a classic when the company bought Converse last year came as welcome relief to sneaker fans and a pleasant surprise to investors and analysts who have watched it stumble when it tinkered with past acquisitions. And with Converse helping to drive up sales, industry watchers say Nike is likely to duplicate this success by acquiring other brands. John Horan, who publishes the trade magazine Sporting Goods Intelligence, lists youth sporting goods company Burton and outdoor clothing retailer Patagonia as two possibilities. In a mature market, the world's biggest athletic shoe company needs new brands to boost sales, he said. "Burton would be a fantastic fit because it would get them a terrific platform in that Generation X sports arena," Horan said. "They would love to get their hands on Patagonia because Nike has an outdoor division, but it has never really gotten the credibility in the specialty market." To diversify its product offerings, Nike paid about $305 million for the nearly 100-year-old Converse. So far the bet has paid off. For the quarter ended Aug. 31, sales from the company's non-Nike brands grew 64 percent to $434.5 million, with Converse making up about three-quarters of that amount. Total revenue rose 18 percent to $3.6 billion, with Converse contributing four percentage points of that increase. "The fact they've got this under their belt and they probably did pretty darn well with it gives them a little bit more confidence to think about doing something bigger," said analyst John Shanley of Susquehanna Financial Group. "They certainly have the financial resources to accomplish that not only here in the United States but also in terms of potential international deals," he said. The article goes on, and here's the rest Quote Link to comment Share on other sites More sharing options...
John Frieh Posted October 13, 2004 Share Posted October 13, 2004 Won't happen... Yvon has gone on record more than once that he will sell to the employees at that time... the same thing he did with Chouinard equipment. But yeah… it would suck. Quote Link to comment Share on other sites More sharing options...
b-rock Posted October 13, 2004 Share Posted October 13, 2004 Sure would suck and be a big disappointment. Patagonia sets some of the best examples with regards to the environment and good employment practices, they're everything Nike is not. Quote Link to comment Share on other sites More sharing options...
sk Posted October 13, 2004 Share Posted October 13, 2004 NO NO NO NIKE can not buy my beloved patagonia Quote Link to comment Share on other sites More sharing options...
Ireneo_Funes Posted October 13, 2004 Share Posted October 13, 2004 I haven't bought anything from Patagonia for a dozen years, but yeah, it would be a drag if Nike bought them out. I've always considered Patagonia a socially conscious company, and I think that Nike is just the opposite -- only pretending to have a commitment to the environment and economic justice when it's convenient. Quote Link to comment Share on other sites More sharing options...
Fairweather Posted October 14, 2004 Share Posted October 14, 2004 I'll bet Nike wouldn't donate $15,000 to The Ruckus Societylike Patagonia! You call that being "socially conscious"? Boycott Patagonia. Quote Link to comment Share on other sites More sharing options...
AlpineK Posted October 14, 2004 Share Posted October 14, 2004 I like Patagonia...and Fairweather's distaste for what they do is just one more reason to buy their stuff. Quote Link to comment Share on other sites More sharing options...
cracked Posted October 14, 2004 Share Posted October 14, 2004 I like Patagonia, I don't mind their activism, and the only thing that pisses me off is them telling me to base my vote on a single issue. But their preachiness aside, they're a good company. Quote Link to comment Share on other sites More sharing options...
griz Posted October 14, 2004 Share Posted October 14, 2004 I'd be surprised if he ever went for a deal w/ Nike. I think he's kept that company private for all these years so he can tell companies like that to go fuck themselves w/o any debate. Quote Link to comment Share on other sites More sharing options...
snoboy Posted October 14, 2004 Share Posted October 14, 2004 Typical kneejerk liberals condemn Nike... in other news, Mt St Helens is still a volcano. Quote Link to comment Share on other sites More sharing options...
scott_harpell Posted October 14, 2004 Share Posted October 14, 2004 Overpriced Shite anyways. Maybe those sweatshop kid'll drop the price of a raincoat down to a couple hundred bucks. Their coats cost more than my first car. Quote Link to comment Share on other sites More sharing options...
griz Posted October 14, 2004 Share Posted October 14, 2004 You need to get a climbing buddy that works there... I had my last goretex jacket get flushed down the Middle Fork of the Salmon and he picked me up a new one for $10 at the next pup sale they had for employees. Sweeeeeet! Quote Link to comment Share on other sites More sharing options...
scott_harpell Posted October 14, 2004 Share Posted October 14, 2004 I go to the turkey sale in canada and they have 75% off. I would never ever ever pay retail. Their shite is good shite though. I have had some of there stuff for a long long time and it is ugly now, but still works. Quote Link to comment Share on other sites More sharing options...
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