CEO on the hot seat: Mark Parker, Nike
Parker can focus on international opportunities, but will bump up against tougher competition.
By Jon Birger and David Stires, FORTUNE

NEW YORK (FORTUNE Magazine) - Beware the fury of a frustrated founder. In January Phil Knight ousted CEO William Perez, his hand-picked successor, after only 13 months on the job and replaced him with Mark Parker.

A Nike lifer, Parker has to grow the company internationally and build the company's other brands such as Converse, Starter, and Cole Haan. And he has to hope Knight grants him the autonomy Perez claims he never got.

Opportunities

You wouldn't know there was turmoil at the top based on performance. Earnings were up 25 percent last year, and the stock is near an all-time high.

Parker can build on Nike's success in women's apparel, make more inroads into the European soccer market, and turn Nike's presence at the 2008 Beijing Summer Olympics into a Swoosh coming-out party in China.

Stock outlook

Nike (Research) is trading at 17 times trailing earnings -- well below its 10-year average.

Still, the Adidas-Reebok merger may create a more potent competitor. And as Citigroup analyst Kate McShane notes, with a third of Nike products sourced from China, further appreciation of the yuan could drive up costs and squeeze profit margins. Top of page

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Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.