The running shoe and apparel company Nike has been the number one running shoe company for a long time, Sarah Halzack writing for Bloomberg News asks has Nike lost some of its magic? At the end of September, Nike announced its North American sales had lost 3% of sales because of gross margins declined as more people shop in off-price sales.

All companies have a gross margin and if the image or brand they are projecting appeals to the general public, the public is willing to pay the extra cost of the merchandise. For Nike, fewer people are willing to pay full price or they are looking for the specials which means gross margins fall. Recently market research firm NPD Group reported Adidas outsold the Nike Jordan line.

Nike sells 55% of its shoes outside the US and in China sales were up 12%. The Nike brand is considered to be very strong, Nike’s online sales from its website was up 19% and from the Nike stores were up 5%.

The consensus is Nike is still in control of its narrative and world-building in the shopping experience for it has a rare asset. Nike has everyman appeal but also seen as an aspirational, high-end halo. The comparison is Apple.

Nike’s plan is to speed up the innovation pipeline to bring more fresh styles.

Linking to dividend paying stocks, unless there is a monopoly or monopoly like conditions, companies will be doing well until they begin to hit a roadblock of the public’s change. Change is wonderful until it is not.

There are more questions than answers, till the next time – to raising questions.