Deckers Outdoor Corp (DECK), NIKE, Inc. (NKE): Speciality Shoes Took a Decking

The other thing I like about this shoe company is various international growth opportunities. Skechers USA Inc (NYSE:SKX) is quickly becoming a formidable competitor to NIKE, Inc. (NYSE:NKE) and adidas AG (ADR) (OTCMKTS:ADDYY) in the performance-sneaker category. Its Skechers USA Inc (NYSE:SKX) GOwalk sneakers have proved to be very popular with women, with strong demand in the retail stores and online.

The leader

NIKE, Inc. (NYSE:NKE) is the market share leader in the U.S. when it comes to footwear. At the end of last month, NIKE, Inc. (NYSE:NKE) posted March-ended quarterly EPS of $0.76 compared to $0.58 for the same period last year. The big news was that worldwide futures orders were up 8% year-over-year.

The company has a portfolio of brands that include NIKE, Inc. (NYSE:NKE), Converse, Chuck Taylor, Hurley, All Star and Jack Purcell. NIKE, Inc. (NYSE:NKE) also has a solid balance sheet and is returning cash to shareholders. During fiscal 2013. the company bought back 33.5 million shares for about $1.7 billion; it also pays a modest 1.3% dividend yield.

Bottom line

While Deckers is an interesting turnaround story and deep value investing opportunity, it will likely be some time before we see the fruits of its labor. However, for investors looking for a couple of shoe investments that will provide less volatility, NIKE, Inc. (NYSE:NKE), with its leading market position, and Skechers USA Inc (NYSE:SKX), with its diversified product portfolio and compelling valuation, are solid investment choices.

Marshall Hargrave has no position in any stocks mentioned. The Motley Fool recommends Nike. The Motley Fool owns shares of Nike. Marshall is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Speciality Shoes Took a Decking originally appeared on Fool.com is written by Marshall Hargrave.

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