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I remember six years ago when the Beastie Boys released their newest album. It dealt with New York City and what it meant to the group -- hence the title, "To the 5 Boroughs." It seems that athletic shoe and apparel giant Nike (NKE) also will attempt to capitalize on the pride generated in each of the city's five boroughs, as it will release a limited edition line of shoes celebrating each of the boroughs.
These shoes will only be sold in New York, with select stores in each borough receiving the corresponding shoe. These shoes were produced for the inaugural World Basketball Festival that will take place from August 12 through August 15. The selected stores in Brooklyn will receive shoes with a black, plum, and white color scheme; a logo for the borough; and laces that identify the shoes as the Brooklyn edition.
The only store that will have all five of the shoes will be the Nike store in SoHo. If you are a sneaker freak who doesn't live in New York, you may be able to score a pair of these shoes through the online Nike store. What is the price tag for these new kicks? $135 -- and you can bet that these shoes will sell out in the first weekend, if not the first day.
This is the marketing genius of Nike, these shoes are guaranteed sell outs at $135 a pop. In this economic environment, there are still plenty of people ready and willing to dish out the money, whether or not they are able. It is Nike's ability to make shoes that the huddled masses want no matter the cost that has helped the company weather the economic storm.
Check out this chart for Nike, the company kicked sideways through the worst of the economic downturn before turning lower in late 2008. This fall came to an end in March 2010, when the stock bottomed at the round-number $40 level and rebounded. Today, the stock is trading in the mid-$70 region. One concern is that the stock is at the top rail of its Bollinger Bands, suggesting that there may be a bit of a pullback in the cards. The thing is, Nike has enjoyed support from its 20-month moving average, which lurks just beneath the stock's current position.
A stock that Nike reminds me of is Apple (AAPL). The tech giant continues to produce gadget after gadget that the consuming masses clamor for. Sure sounds like the formula Nike is using. Nike produces shoes that the public will purchase no matter the cost. Take these limited edition shoes as an example of Nike's formula for success.
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