NIKE, Inc. (NKE)

Sector: Consumer Discretionary|Industry: Footwear & Accessories|Market Cap: $114.99B|Employees: 79.4K


NIKE, Inc. is the world's largest seller of athletic footwear and apparel, designing, developing, and selling athletic footwear, apparel, equipment, accessories, and services globally. The company's primary revenue streams are from NIKE-owned retail stores, digital platforms, and wholesale accounts, with manufacturing primarily outsourced. NIKE's competitive advantages include strong brand recognition, innovation, and a global distribution network.

  1. Filings
  2. Company Profile

Business Summary

NIKE, Inc. designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services globally. It is the world's largest seller of athletic footwear and apparel. NIKE sells its products through NIKE Direct operations (retail stores and digital platforms) and wholesale accounts (independent distributors, licensees, and sales representatives). Products are manufactured by independent contractors, primarily outside the United States. NIKE's brand portfolio includes NIKE (focused on performance athletic products), Jordan (focused on basketball), and Converse (focused on casual sneakers and apparel). The company also offers interactive consumer services and digital products.

Key Statistics

  • Employees: 79,400 (as of May 31, 2024)
  • Geographic Footprint: Nearly all countries around the world
  • Headquarters: Beaverton, Oregon, USA
  • Founded: 1967
  • Number of locations/facilities: Over 40 buildings at headquarters; 8 significant distribution centers in the US, several international; 1,040 retail stores globally
  • Revenue: $51.4 billion (FY2024)
  • Market Cap: $140.9 billion (as of November 30, 2023)
  • Key Subsidiaries/Brands: NIKE, Jordan, Converse, Air Manufacturing Innovation

Leadership

  • Executive Chairman: Mark Parker
  • CEO: John Donahoe II
  • CFO: Matthew Friend
  • EVP, Chief Human Resources Officer: Monique Matheson
  • EVP, Chief Legal Officer: Ann Miller
  • President, Consumer, Product & Brand: Heidi O'Neill
  • President, Geographies & Marketplace: Craig Williams

Key Financial Metrics

  • Annual Revenue: $51.4 billion (FY2024)
  • Net Income: $5.7 billion (FY2024)
  • Market Cap: $140.9 billion (as of November 30, 2023)
  • Total Assets: $38.1 billion (FY2024)
  • Number of Employees: 79,400 (as of May 31, 2024)
  • Key Financial Highlights (FY2024): 1% revenue growth (0% change reported, 1% currency-neutral); Gross margin increased 110 basis points to 44.6%; $443 million restructuring charge related to streamlining; $6.4 billion returned to shareholders via repurchases and dividends; ROIC of 34.9%

Products and Services

NIKE designs, develops, and markets athletic footwear, apparel, equipment, and accessories. It also offers interactive consumer services and digital products such as fitness apps and sport content.

  • Footwear: Designed for specific athletic uses and casual wear.
  • Apparel: Sports apparel featuring NIKE trademarks, often marketed in collections.
  • Equipment: Bags, socks, sport balls, eyewear, and other sports equipment.
  • Digital Products and Services: Fitness and activity apps, sport content, and in-store digital experiences.

Key Business Segments

NIKE's business segments are North America, EMEA, Greater China, APLA, Global Brand Divisions, and Converse.

  • North America: $21.4 billion in revenue (FY2024)
  • EMEA: $13.6 billion in revenue (FY2024)
  • Greater China: $7.5 billion in revenue (FY2024)
  • APLA: $6.7 billion in revenue (FY2024)
  • Global Brand Divisions: $45 million in revenue (FY2024)
  • Converse: $2.1 billion in revenue (FY2024)

Business Strategy

NIKE's strategy focuses on sustainable, profitable long-term revenue growth through product innovation, consumer connections, and compelling digital and retail experiences. They prioritize investment in NIKE Direct operations and enhancing the brand experience with wholesale partners. A key initiative involves streamlining the organization to reinvest savings in future growth, technology, and data analytics to improve consumer service.

Industry Context

NIKE operates in the highly competitive athletic footwear, apparel, and equipment industry. Key competitors include Adidas, Anta, ASICS, and Under Armour. Competition centers around product innovation, consumer engagement, effective sourcing, and distribution.

Risk Factors

  • Global Economic Conditions: Changes in consumer spending, inflation, currency exchange rates, and access to financing could negatively impact NIKE's business.
  • Intense Competition: The athletic apparel and footwear market is highly competitive, requiring continuous innovation and effective marketing.
  • Climate Change: Climate change and related regulations could affect raw material availability, consumer preferences, and operating costs.
  • Supply Chain Disruptions: NIKE's reliance on independent contract manufacturers and global supply chains exposes it to disruptions from various factors.
  • Intellectual Property Infringement: Counterfeit products and intellectual property disputes could harm NIKE's brand and sales.

Last Updated

2024-07-25

(Generated from latest 10-K filing)