Interesting thought. It would seem the two companies have nothing in common.....but that would be wrong. Nike faces lots of competetion on the sports front from UA, adidas, among others. Granted, right now its winning the international war. But what if they diversified the brand a bit by buying out the UGG brand. Nike did once own the Cole Haan brand which they sold for about 500M about two years ago to private equity. Cole Haan was not profitable. Here, the UGG brand brings in 1.3B+ in revenues alone, and offers tremendous cash flow, and Nike could use that to leverage the other brands it would aquire such as sanuk, teva, and Hoka.
Just a thought but Coach missed the boat two years ago with the stock at 1B valuation. Nike has the cash on the balance sheet to make the offer.
UGG brand is projected to grow 11% next year. UGG PURE more of a factor. Stock is 33% off its OLD all-time high despite management projecting record profits come 2016. Time to buy is when somehting is cheap. If Nike were smart, they would think about diversifying their brand before something like a Coach happens to them when market share is eroding in one of their core brands.
Smart thing is to envision ahead where one day, it would be nice to have a brand such as UGGs to boost revenue and cash in winter and other brands that with Nike's marketing and presence, could really bring attention to that a small cap couldn't.