I'm wondering if there is more here than meets the eye. The purchase price seems actually pretty reasonable at least by today's valuation standards. Do we know what the profitability is on the current sales?

Wikipedia on this seems to indicate that the popularity is being drive by product placement and branding deals as opposed to actual product quality (which, while high may not be enough ib its own to even justify the "reasonable" valuation. (Also Nike has been quite successful long term with this practice).