As of November 30, 2008, Nike had more than $1.7 billion in cash on its balance sheet, compared to just $445.5 million in long-term debt. Nike's strong balance sheet and ability to weather the recession puts it in a great position to buy other companies at bargain prices. The company is reportedly in discussion to buy Quiksilver, Inc., a sportswear company geared mainly towards surfing and skateboarding. Quiksilver’s stock price rose 46 percent on Monday, January 26 to $2.21 per share, on speculation that the company could sell itself or its brands.
In 2002, Nike purchased the popular surfwear company Hurley International in a deal reported to be worth between $100 million and $140 million. The recession could open new opportunites for Nike to push into surfing, a market outside of its traditional core categoreis of soccer, basketball, running, men’s training, women’s fitness and sports culture.
Nike has diversified its footwear into the rapidly expanding action sports/low-performance footwear market with the acquisition of Converse and Hurley International. These products become increasingly more popular in times of economic downturns, when customers begin to shy away from Nike's high performance shoes that average $100/pair and begin buying more low-performance shoes (average $65/pair)
In light of the Tiger Woods marital scandal, many of his main sponsors have either cut ties with him completely (such as Accenture) or cut back on using him in their advertisements (such as Gilette). Nike, however, has firmly stuck by their man, and many believe this will have no harm on Nike's business.
In its Q2 2010 report, the company announced that its shares rose by 1.9% after the reported figures were better than expected. The company expects future growth due to an increase in future orders, and believes this will more than offset any harm resulting from the Tiger Woods incident because its golf business only makes up 3% of its sales.