compare that to nike and granted the valuation is different, foot locker is more like 16, nike is more like 27 or something. >> the valuation of the company, vat you trap, it is exactly what it feels like right now. it is a name we liked or i've liked on the desk for a long time but has not performed. look at the valuation, it doesn't make any sense. look at last quarter's earnings, it doesn't make any sense. the one thing to throw at this right now and curious what erin's take would have been with online sales, are they doing enough there, is there enough growth for them right now in that space to be able to get them the growth that they need going forward? >> right. or are people just buying things online and not going to a foot locker, which makes a few -- nike, there are other brands out there, beefing up on dtc. >> right. nike is the king and i love that play. pete's been on the -- >> you would rather pay more for nike. >> i would. >> than less for foot locker. >> you can own foot locker, but you should have muted expectations in the near term. i really like the franchise. i think

it seems like there's a kinship between apple and nike. tim cook is on nike's board.t is that relationship? >> well, i think it's more kind of a cultural sameness than there is anything else. yeah, obviously tim cook is a very valuable board member, but sort of the cultures the two companies are similar that's why we get compared in the media. >> let's go back to the 1960s where the book begins. you're a runner with a track coach you're very fond of, an accountant and stanford business school grad. >> all those things. >> that produced a crazy idea. >> it was a combination of two things, came up with the running track in a classroom at stanford business school. and bioman was always tinkering with shoes and began to have some of his good runners, not just hacks like me wear the shoes. and they were wearing them quite successfully. and he was very sincere in believing the weight of the shoe was very important to a runner. and so that registered. then all the best shoes were being made in germany. and it made no sense, adidas and puma, made no sense. so i wrote a paper

nike. especially me, not a eureka moment. are a lot of bad names in is bestguess this, we could do. charlie: what has been the hardest part? phil: you know, we had a lot of difficult moments. i suppose there are several down moments in the history of the journey. but the one that comes to mind the most is when i got kicked out of the second bank, and they told me i no longer had a bank. they said we are so far over drafted we had to notify the fbi. they told me that at 5:00 on friday. what will happen on monday? charlie: what did happen? phil: the fbi never did anything. the bank was repaid instantly. we got bailed out by a japanese trading company, not a well-known company in the states, but it was the six-largest company in japan. they were wonderful with us, really helping us through the early years. charlie: still an affinity with japan? phil: totally. the company started there, had financing, i like the food and the scenery. charlie: there is also been enormous advantages you have had, in terms of timing. you came in --

charlie: nike is more than a shoe company. phil: it is. a company that provides inspiration, innovation for every athlete in the world. that is our goal. charlie: those advertisements we just saw, are they inspired by you personally? phil: no, i would definitely say not. although, sort of the culture of the company remains today, and it kind of grew out of the relationship between me and bill, we have fingerprints on that. he is my coach and co-finder. charlie: tell me about it. phil: wonderful man. very hard to describe. kenny moore wrote the best book on him, 420 pages, but he still did not capture the man. he had so many different parts of him. i like to say that describing bill bowerman is like trying to describe an elephant. it was really what day you caught him on, that is how you describe him. charlie: what did he mean to you? phil: everything, basically a second father, and inspiration to me. a strong disciplinarian on me, until the day he died. charlie: here is what is interesting. michael jordan, all of the things he did not do,

we made a transition from tiger to ba became nike. we had to come up with a brand name and a logo for the side of the shoe. we said we don't have any time to do research, we just have to pick a name and make it mean something. so we had a hat and went around to all 45 employees and everybody put a name in. and my name was dimension six which i was fortunately, i was not creative enough to puck a good name but was smart enough not to pick my own name. >> rose: and somebody put nike. >> jeff johnson actually the night after it was-- everybody put their name in, we didn't have a name we liked. and jeff johnson called and he put a name in. he said i have a better idea, he said nike. >> rose: did everybody instantly say yes. >> no, no, it was not a eureka moment, i said there are a really lot of bad names in there. i guess this is the best we can do. >> rose: what has been the hardest part of it though? >> oh, i think you know, we had a lot of-- difficult moments. i mean i suppose there's several down moments in the history's journey. >> r

or are you 100 percent nike?pretty much 100 percent nikes. i had dress shoes but when i got older it hurt my feet. now i wear black air maxes with my tuxedo. that's what this is. >> you wear that with a tuxedo. >> yes, i do. >> those are handsome shoes. >> thank you. they are certainly more comfortable than dress shoes. >> my husband would be very jealous. >> we need to get him a pair discipline deed, we do. >> so, any idea how many different models of shoes you have ever had over the years. >> how many i have had or nike has had. >> oh, it's tens of thousands for sure. >> how many do you have at home in your closet? >> in my closet i have about 50 pair. probably six of them are the same model. >> do you toss them when you don't need them? you are not sentimental with your shoes. >> what happens with any running shoes a lot of them are running shoes. they wear down in the heel and get you off strides and then you have to throw them away. >> what's sort of the secret to success in shoes? what should you look for?

nike continues to have growth.s the key of what's moving the needle. they continue to grow. yes, they have moved to oefrz markets. international, more growth, but under armour has done everything right. kevin plank has the right celebrities, quote/unquote, in terms of the superstars. his growth is unreal. >> you can almost hear without saying it phil knight saying he wishes he wouldn't have let a couple of athletes get away. is he thinking of spieth? steph? jordan, lebron to steph, tiger to spieth. it's interesting how under armour grabbed those. >> under armour is aggressive in the college ranks as well in terms of the sponsorships and deals with a lot of universities. >> if steph were in nike airs would he be in better condition now than if he was in under armour? >> i want to take a quick break. we'll be right back. i'm in vests and as a vested investor in vests, i invest with e*trade, where investors can investigate and invest in vests... or not in vests. this is my retirement. retiring retired tires. and i nev

of nike products. while knight resisted the charges at first, he now insists conditions and wages have been improved. >> initially your reaction to it, was making things worse. you were defensive about it. >> i was. good shoes come out of the good factories, fact that they could did concentrate on. >> knight has softened in his later years. his personal fortune now estimated to be around $5 billion. money, he says, was never the reason he started selling shoes. but now that he has it, he intends to use it. >> by the time you know the lives of my children and their kids run out, i will have given most of it to charity. >> together with penny, his wife of 48 years, they have already donated well over a billion dollars to various causes. they pledged $500 million for cancer research at the oregon health and science university. at stanford, where he drew up that blueprint for nike, they have given more than half a billion dollars and counting. but it's here, at the university of oregon, where knight's mark

yet another innovation only at a sleep number store. >>> nike's founder phil knight is out with a newen he sold sneakerers out of the trunk in the 1960s. he joined sarah eisner, and man, he brought the fire. >> yes, and there are so many case studies written on nike, and never has the story been told by the man who made it happen. he mentioned the book to come here on the stock exchange to talk about it and reminisce of the good old days, and while nike is still on top, i did talk about the intense competition between adidas, and others. and now, the founder of adee distalked about when he sold shoes out of his trunk, and did you have anything in common with him? >> well, no, not really. >> and he mentioned where the famous swoosh came by. >> when we broke out, we were a distributor for tiger shoes and when we broke off, we need eded graphic on the side and so we paid a graduate student at portland $35 for the swoosh. >> and he handed the reins over to mark parker, and he is prepared the to step in as chairman and i asked him if it is hard to let go, and he said, get back to me in jun

what is the significance of this nike shoe here? >> this put nike on the map. >> stephen: who the question signed the swoosh? >> a gask artist at portsland state university. we paid her $2 an hour. it's been easily worth it. but when we went public, we gave her 500 shares of stock, and she hasn't sold a single share and >> stephen: oh, that's great. (applause) when you say waffle, it was literally made in a waffle, right? >> we had a discussion with the track coach that became my partner and said the runner shoe hasn't had a new outer sole in 50 years. he was thinking about it when he was driving back and his wife was making waffles and that was the start of the sole. just this last year the international inventors hall of fame made them a member of their hall of fame for the waffle sole. >> stephen: well, you have a new book called "shoe dog." what's a shoe dog? >> when i got in the business a shoe dog is basically a shoemaker, and they had a -- >> stephen: not a cob snrer. no, but the shoe dogs went through the generations and the

the world headquarters of nike.rel company on the planet with sales topping $30 billion last year alone. it took to the starting line over 50 years ago, the brainchild of a young track athlete named phil "buck" knight. he's now 78 and one of the richest men in the world. >> there are times when the sun goes down i look out at the building i get choked up. >> an empire is sort of funny word, but it kinda is. >> well, we don't use that word about ourselves but it's gotten pretty big. >> he's a curious character, controversial, unpredictable and fiercely competitive a. just do it style of business that sometimes rubbed people the wrong way. >> seems l businessman. >> no, not at all. i'm proud of. that we do business the way we do business. >> when he announced he was stepping down last year, knight decided to reveal what he called his crazy idea of a business plan in memoir called "shoe dog" published by scribner a division of cbs's simon and shoes it. >> was crazy idea to the outside world but it never really was to m

, to have the players wear nikes, it helps sell nike shoes. so he introduced this concept that has blossomed and absolutely exploded since the 1980. he's also the guy who convinced nike to pour a lot of resources into signing michael jordan when he was coming out of north carolina and to build a shoe around him. so he is a guy who sort of invented commercialism in college sports. and then about 15 years ago he had seen so many players that he had worked with basically railroaded by the ncaa, by the ncaa's rules and quit his job. he was at reebok then and went on a crusade. there's no better word, a crusade against the ncaa. he's the one who ginned up a federal lawsuit against the ncaa that went to trial a couple years ago. he toured the country speaking at law schools, you know, in front of crowds of, you know, 15, 20 people trying to explain the ills of the ncaa in this off-the-cuff sort of, you know -- he's not a linear thinker. so you'd go and hear him speak, and, you know, you had no idea what he was saying, but you would understand the pa

usually nike or under armour you wear their clothing. how does zappos benefit here?> the unique thing about this partnership is that ronny has incredible flexibility now to wear whatever shoe he wants to on the field and he can change from week to week but this deal also includes not only on the field but also his lifestyle apparel as well. so when ronny is not on the field he can wear up to 1,000 different brands if he chooses to because zappos deal with 1,000 differ vendors from around the globe. in that perspective it's unique. in addition to being an ambassador of apparel he will do things in local community in las vegas. he'll do public appearances and work and he'll meet with their staff and it touches differ parts of ronnie's life and nontraditional. >> i wonder if you can address the trade offs involved in going this route. when an athlete wants to sign with a very particular brand he or she wants to associate himself or herself with everybody else who is also endorsing that brand. the sentiments that surround the quality of the brand things like that. whethe

. >> and the founder of nike, telling his story.lly never openly talked about the past, the nike story, how he and a group of fellow runners and accountant friends formed blue ribbon sports. ultimately grew up to become nike. but now he's 78, and he's ready to share his story. he's putting out a new memorier this week called shoe dog. being published today. he'll be sitting down with us for a rare interview on "squawk on the street," 10:30 a.m. eastern time. i haven't been this excited for an interview in a long time. >> we look forward to that. 10:30 on "squawk on the street." >> yeah. and just some nuggets from the nike history that nobody has ever heard before. where the swoosh came from. where "just do it" came from the and these market slogans and brands came from. he has a very close relationship with tiger woods, interesting. >> interesting. 10:30 squa"squawk on the stree." >>> these two are making their mark on the wec just st coast j they did in new york. in the university of california san francisco, the largest donation i

direct to consumer is very strong for nike in the last quarter.d we be concerned about the likes of a finish line? do they cut them out of the equation? >> you know, nike has always done a very good job owning its brand with its consumers. they have a strong relationship with that consumer. i think they need finish line and foot locker to some extent, foot locker to address a certain segment of the market, the basketball market. it is not the same dynamic you see with department stores, but i do think that nike is a long-term winner and probably a better stock than, you know, some of the retailers that rely heavily on their brand. >> it is not just nike. ralph wants to have 60% of its business direct to consumer. if that's the case, they'll do less in the department stores. that doesn't mean they don't still need to be in 500 macys as their showroom. >> i guess they get to capture the marriagen. >> every time ralph transfers a sale from macy's to them to direct to consumer, they get it at retail instead of wholesale. it goes up. >> we'll see you i

life, i'm still wearing nike shoes in the fight.comfortable, you know, what i said is on that video they misquoted that video because that video interview was five to ten minutes. i mean, i'm not condemning anyone or who am i to condemn them. i love them all. >> but if you were misquoted, then why did nike take back the sponsorship? if you were misquoted they would give it back again, wouldn't they? >> i don't know. i don't know because they cut the interview short and the whole video is about ten minutes and they didn't show it. and we know that politics in the philippines election -- >> so what are you going to do, manny, now that this is your last fight? i know you're involved in politics in the philippines. you've amassed quite a fortune. what else do you have in mind? >> well, even before, i'm already helping the people and you know, the money i earn in boxing, not only spending on my own family and own self-and helping people and giving them shelter and giving a house free for its family and giving sustainable livelihood, scho

steph curry with the warriors almost fell into their lapse because nike fumbled.hey were in a deal with him, they had him. and when steph curry was in front of them, they mispronounced his name and had kevin durant's name on a contract and it was a mess. he said forget it, i'm going with under armour. >> i heard the person who handled that for nike is no longer there. liz: really? >> that didn't go well. liz: endorsements are tricky with athletes, they are unpredictable, right? jordan spieth is sort of the golden boy right now. >> steph curry is too, you look at three young guys, mcilroy, day, good guys, these are all young guys. mcilroy, only a few guys have won the grand slam, the four big tournaments and mcilroy has a chance to do that at a young age, given how he played the last round, probably not this year. liz: i would never short mcilroy. wham i talking about? mike, good to see you, it's mcilroy, good to see you, thank you so much, mike. >> thanks. >> talking about under armour which is pulling back today. maybe a buying opportunity. closing bell. we've go

his agent and nike, is he an addict spiraling down a dangerous road? . >> plus beyonce gets crazy with lemonade. it has the beehive and the internet buzzing. is she revealing secrets about her own major? but first. >> the "nightline" five. >> if you have allergy congestion j mutting through your morning is nothing new. your mind. introducing rinocort allergy spray. hasn't your nose been through enough already? try allergy spray. muddle no more. >> number one, in just 60 thank you for joining us. known simply as johnny football, unemployed nfl quarterback johnny manziel is making headlines not for his game. tomorrow the 23-year-old is expected to be indicted on allegations that he attacked his ex-girlfriend back in january. the question tonight, is a >> he's known simply as johnny football. >> touchdown. of course it is. >> he had perhaps the greatest nickname in the history of college sports and the game to back it up. johnny football was like watching houdini in cleats. >> johnny manziel. >>> in 2012, he was the first freshman to win the heisman. fame

his agent and nike, is he an addict spiraling down a dangerous road? ♪. >> plus beyonce gets crazy with lemonade. it has the beehive and the internet buzzing. is she revealing secrets about her own major? but first. ♪ >> the "nightline" five. >> if you have allergy congestion j mutting through your morning is nothing new. your nose is the only thing on your mind. introducing rinocort allergy spray. hasn't your nose been through enough already? try allergy spray. muddle no more. >> number one, in just 60 seconds. when you want itchy, watery eyes and sneezes out of the picture, you go to walgreens for flonase allergy relief- over the counter in full prescription strength. with walgreens right around the corner, it's easy to get more complete relief in a flash. how's that for picture perfect? well... "perfect" might be a slight exaggeration. swing by walgreens for flonase that helps block six allergic substances, not just one. walgreens. at the corner of happy and healthy. thank you for joining us. known simply as johnny football, unemployed nfl quarterba

his agent and nike, is he an addict spiraling down a dangerous road? ♪. >> plus beyonce gets crazy with lemonade. it has the beehive and the internet buzzing. is she revealing secrets about her own major? but first. ♪ >> the "nightline" five. >> if you have allergy congestion j mutting through your morning is nothing new. your nose is the only thing on your mind. introducing rinocort allergy spray. hasn't your nose been through enough already? try allergy spray. muddle no more. >> number one, in just 60 seconds. from bank of america to buy a new gym bag. before earning 1% cash back everywhere, every time and 2% back at the grocery store. even before he got 3% back on gas. kenny used his bankamericard cash rewards credit card to join the wednesday night league. because he loves to play hoops. not jump through them. that's the excitement of rewarding connections. apply online or at a bank of america near you. thank you for joining us. known simply as johnny football, unemployed nfl quarterback johnny manziel is making headlines not for his game. tomorrow

his agent and nike, is he an addict spiraling down a dangerous road? ♪. >> plus beyonce gets crazy with lemonade. it has the beehive and the internet buzzing. is she revealing secrets about her own major? but first. ♪ >> the "nightline" five. >> if you have allergy congestion j your morning is nothing new. your nose is the only thing on your mind. introducing rinocort allergy spray. hasn't your nose been through enough already? try allergy spray. muddle no more. >> number one, in just 60 seconds. i'm chris van hollen, and i approve this message. narrator: an attack ad from the campaign for donna edwards. so untrue. so outrageous that president obama said, "pull it down." the obama white house called the ad on chris van hollen and the nra "misleading." the sun says van hollen and president obama have the exact same position. the post praised van hollen as a "leading champion on gun safety," and condemned the edwards ads that "mislead" voters. donna edwards. will she say anything to win an election? donna edwards. the e-class has