Written by, Sandeep Kumar
Updated April, 11, 2022
Nike’s brand value is $34.6 billion, making it the most valuable brand among sports businesses. Additionally, Nike’s worldwide revenue has been estimated at $44.53 billion.
Nike, Inc. – an American multinational corporation, is the world’s largest manufacturer and supplier of athletic shoes, apparel, and sports equipment. Its income comes from its apparel and footwear, which account for roughly 96% of the company’s sales.
Moreover, this sports giant is forecast to report $10.6 BN in revenue during its 2022 Q3, with earnings of 71 cents per share.
Let’s dive in a bit deeper for more details.
Nike ranks second with consumers aged between 45 to 65, third with consumers aged 25 to 44 and fifth with consumers aged 18 to 24.
Nike’s ultimate goal is to equip teens under 20 with athletic apparel, especially in sports like soccer/football.
Sources: Investopedia, SneakSaver
Nike has 112 footwear factories in twelve nations from which its products are sourced. Vietnam accounts for 49% of footwear production, China for 23%, and Indonesia for 21%.
Coming to apparel manufacturing countries, Nike has 334 factories located in 36 countries. China accounts for 27% of apparel, followed by Vietnam with 22% and Thailand at 10%.
Source: Companies MarketCap
The latest reports on Nike’s market cap (2022) show that the current year’s market cap is $211.41 billion. However, this is a decrease of roughly 20% compared to last year’s (2021) market cap of over $263.55 billion.
Interesting Nike fact: Nike’s highest market cap from 2001 through 2022 was in 2021 ($263.55 billion).
Sources: CompaniesMarketCap, Yahoo!Finance
According to recent data, Nike is the world’s 38th most valuable company by market cap. And the Enterprise value, which is a theoretical takeover price for 9th February 2021, is around $226.08 billion.
The global sports market value was around $458.8 billion in 2019, which has declined by 15.4% in 2020. Market value has declined mainly due to the lockdown imposed by various countries owing to the COVID-19 outbreak.
By 2025, the global sports market value is expected to reach $599.9 billion and $826 billion by 2030 at a CAGR of 6.6%.
Interestingly, North America was the largest region in the global sports market, accounting for 35% (approximately $136 billion) of the total in 2020.
Sources: The WealthRecord, The Small Business Blog
Following the latest digits by Nike’s reports, we can certainly state that the brand is currently valued at around $35 BN. Furthermore, the total value of Nike’s assets is estimated to be $23.26 BN.
Additional reports indicate that Nike’s expected operating income is close to $5 BN, and their anticipated net profit is precisely $4.24 BN.
According to the Statista report, Nike’s share in the international sports and sports-inspired footwear market is steady at 27.4% (approximately $106 billion) in 2019 and 2020.
In 2018, Nike’s global brand value was valued at $28.03 billion, and in 2019 it was around $32.42 billion.
Nike’s brand value has a firm hold of its home market, which is North America. The company in North America generates approximately 43% of the total revenue.
Sources: MacroTrends, Finbox
In 2019, the gross profit of Nike was around $17.47 billion. In 2020, a decline of 7.06% can be seen in the gross profit when compared. To add up, Nike’s gross profit margin for 2020 was around 43%.
Nike’s net income has declined by 36.98% compared to its 2019 annual net income, which was around $4.03 billion.
Nike has seen a gain of 30.66% in 2019 for shares; it tells a story of significant buy demand for shares. Moreover, the average stock price in the last 52 weeks was around $110.58.
Sources: News Nike, Nike
The latest Nike sales (2022) show that the brand’s direct sales are up 15% on a reported and 17% on a currency-neutral basis. Furthermore, as many as $10.9 BN earnings are reported in Q3, 2022. In other words, Nike is up 5% compared to last year’s profits and 8% higher on a currency-neutral basis.
Statista survey from 2021 revealed some interesting Nike customer demographics facts and stats related to its customer demographics.
This is by customer segment, Nike’s worldwide wholesale income for 2021:
Let’s see some revenue patterns of Nike’s growth in the last few years.
Following the Nike shoe sale stats (2021), from the different products the brand sells, footwear makes up precisely 66 percent of the total earnings.
The second major product category added to their profits is apparel with 31 percent. Furthermore, Nike’s equipment offers accounted for no more than 3 percent.
Sources: Statista, Statista, Investopedia
The global revenue of Nike by region was around $37.2 billion in 2019. It declined by 4.6% in 2020. But in the Q2 of its 2021 fiscal year (FY), revenue has grown by 8.9% ($11.2 billion) compared to the year-ago quarter.
In 2020, the revenue generated in the North America segment was around $14.48 billion. In Q2 FY 2021, the segment’s revenue was $4 billion (nearly 36% of total revenue), which grew 0.6%.
Europe, Middle East & Africa
Nike’s revenue share in this segment is approximately $9.34 billion. In Q2 FY 2021, Europe, Middle East, and Africa segment posted $3 billion (21% of the total revenue) in revenue, which grew by 16.6% compared to last year.
In 2020, Nike’s Greater China revenue amounted to about $6.67 billion. In Q2 FY 2021, the China segment’s revenue posted $2.3 billion (nearly 29% of the total revenue), which grew by 24.4% compared to the previous year.
The Asia Pacific & Latin America
In 2020, Nike’s revenue share in this segment was approximately $5.02 billion. In Q2 FY 2021, the Asia Pacific and Latin America segment posted $1.5 billion (14% of the total revenue) in revenue, which grew by 0.2% compared to last year.
Sources: Statista, Statista, CampaignMe
Nike has a total of 1.096 retail stores throughout the world as of May 31, 2020. There is a slight decline in the number when compared to 2019 Nike stores, which were 1.152.
In 2020, Nike had to close 46 shops in the US and ten shops overseas due to the coronavirus pandemic, accounting for 5.1% of total retail stores.
Fun fact: The total number of Nike US retail stores in 2020 was around 338, and non-US stores were 758.
Nike is the largest athletic apparel company globally, with the highest average revenue per store of $34 million. Nike was able to react quickly to the shifting conditions, allowing it to increase its average revenue in 2018.
Sources: InsightsDigitalMediaSolutions, TheFinancial
Nike’s internet sales have increased to 82%, with quarterly earnings of $10.6 billion. Additionally, Nike shares have also surged by 13% due to the rise in digital sales.
Sources: Statista , Statista, Statista
Nike’s footwear is a significant revenue source, accounting for nearly 66% of the company’s overall income in 2020.
Nike’s footwear revenue in different regions is given below:
Nike’s apparel segment’s global revenue share accounted for 31% for the fiscal year in 2020.
Nike’s apparel revenue in North America is around $4.63 billion.
Nike’s share of the Equipment segment accounted for 3% of the total revenue for 2020.
At the same time, Nike’s equipment segment revenue in North America is approximately $0.5 billion.
Sources: Statistic, Fashionabc
Nike’s marketing expenses have been reduced by 4% compared to the previous fiscal year, which was around $3.75 billion.
Their spending on advertisements was almost constant over the years. What’s more, a total of $17.54 billion were spent on advertising over the last five years by Nike.
According to the American customer satisfaction index, Nike outscored Adidas for the first time in five years, with a score of 78. And Adidas has scored just a point lower than Nike.
In 2019, Adidas outranked Nike with an American customer satisfaction index score of 83 for the fourth consecutive year. And Nike had a score of 81, which was the highest rating awarded in decades.
An interesting fact is that Nike sponsored athletes from almost 50 countries in different sports, from cricket to NFL.
All in all, Nike is one of the world’s most prominent athlete sponsors, which spends over $6 billion per year on athlete sponsorship and endorsements.
Cristiano Ronaldo is considered the highest-paid sportsperson in the world. In 2003, Ronaldo signed the first contract and, in 2016, signed a lifetime deal valued at $1 billion. He wore around 60 different Nike cleats while working together.
Nike has acquired six companies and invested in eight more companies.
Source: The Motley Fool
Nike is moving away from conventional retail locations and toward a digital-first platform. Consequently, the most recent Nike partnering up is with Roblox, a gaming company. What’s more, Roblox created a virtual world, i.e., a game called “NIKELAND,” where players may decorate their avatars with Nike apparel.
Approximately 200 children, some as young as 4 and 5 years of age, are involved in the production line. About half of the world’s soccer balls are made in Pakistan, where child labor is involved.
According to the per-capita income of $1.900 per year – a typical person survives on $5 per day in Pakistan. And some parents willingly send their children to work to survive.
Here raises the question, Is it cruel for Nike to give them a chance?
Some of the facts about Nike companies from certain regions are given below:
But Nike paid Andrew Young, who reasons the issue by saying, “That’s the way they do things there; you run around to get your motor started.”
However, Philip Knight, the CEO of Nike, lied to shareholders that only one employee was injured on the arm.
Sources: macrotrends, Statista
Have you ever wondered how many employees does Nike has worldwide? According to Statista’s survey (July 2021), we learned that exactly 73.300 people on a global level work for Nike. This number seems like a decrease of almost 3% if we consider the reports for 2020 when there were 75.400 people working for this giant. Additionally, in 2019, Nike had no more than 76.600 employees globally.
Carolyn Davidson, a graphic designer, designed Nike Swoosh in 1971 — her invoice for this design was $35. Furthermore, her work with the Swoosh resulted in four-year employment, freelance projects, and eventually $1 million.
Let’s find some of the facts:
Ever wondered how many stores does Nike has? As of March 2022, Nike has no more than 250 stores in the US solely. Additionally, California has 39 Nike retail stores, making it the state with the most Nike outlets in the United States. What’s more, California is responsible for 15% of all Nike locations in the US.
Other US states that have Nike stores are these next ones:
|Total Number of products||643||2625|
|Products sold at MRP||429 (66.7%)||659 (25%)|
|Market Cap||$226 billion||$70 billion|
|Brand value||$34.8 billion||$16.5 billion|
|A country with significant sales||North America (45%)||Western Europe (29%)|
|Revenue||$37.4 billion||$22.63 billion|
|Gross Profit||$16.24 billion||$11.25 billion|