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Nike Divestitures Should Add Spring To Its Step-Barrons

|Includes: Nike Inc. (NKE)

Nike Inc. (NYSE:NKE) today announced that they are planning to divest their Cole Haan and Umbro brands. I think this is a good move due to the lower operating margins that these brands have, and they also distract Nike from their core business focus which is thriving. Nike's competitive advantages continue to grow as they are constantly building their brand and franchise value. Nike's scale makes them the lowest cost competitor in a difficult industry and no company can match their distribution capabilities.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.