Written by, Sandeep Kumar
Updated June, 7, 2021
Nike’s brand value is $34.8 billion, making it the most valuable brand among sports businesses. Also, the global revenue of Nike has been recorded at approximately $37.4 billion.
Nike, Inc. – an American multinational corporation is the world’s largest manufacturer and supplier of athletic shoes, apparel, and sports equipment. The company’s apparel and footwear make up about 96% of Nike’s brand revenues.
In 2020, Nike’s brand value was $34.8 billion, making it the most valuable brand among sports businesses. Also, the global revenue of Nike has been recorded at approximately $37.4 billion.
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 and football.
Nike has 112 footwear factories in 12 countries from which the products are supplied. In footwear production, Vietnam accounts for 49%, China at 23%, and Indonesia at 21%.
Coming to apparel manufacturing countries, Nike has 334 factories located in 36 countries. China accounts for 27% in apparel, followed by Vietnam with 22% and Thailand at 10%.
According to the 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 at 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%.
An interesting fact is that North America was the largest region in the global sports market, accounting for 35% (approximately $136 billion) of the total in 2020.
( Statista )
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.
( Statista )
In 2018, Nike’s global brand value was valued at $28.03 billion, and in 2019 it was around $32.42 billion.
The brand value of Nike has a firm hold of its home market, which is North America. The company in North America generates approximately 43% of the total revenue.
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 is around 43%.
( Statista )
Nike’s net income has declined by 36.98% compared to 2019 annual net income, which was around $4.03 billion.
( Investopedia )
Nike has seen a gain of 30.66% in 2019 for shares; it tells a story of significant buy demand for shares. The average stock price in the last 52 weeks was around $110.58.
( MacroTrends )
Let’s see some revenue patterns of Nike’s growth in the last few years.
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 $4.0 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 & Africa segment posted $3.0 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 & Latin America segment posted $1.5 billion (14% of the total revenue) in revenue, which grew by 0.2% compared to last year.
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.
The total number of Nike US retail stores in 2020 was around 338, and non-US stores were 758. The number of stores in the US was 384 and 768 non-US stores (international) in 2019.
In 2020, Nike had to close 46 shops in the US and 10 shops overseas due to the coronavirus pandemic, accounting for 5.1% of total retail stores.
( Trefis )
Nike is the largest athletic apparel company globally, with the highest average revenue per store of $34 million. Nike was able to adapt to the changing dynamics quickly, which helped grow Nike’s average revenue in 2018.
Nike’s online sales have jumped to 82%, with quarterly revenue of $10.6 billion. Nike Shares have also surged by 13% due to the rise in digital sales.
Footwear is a key product for Nike, contributing nearly 66% of the entire revenue for the fiscal year 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 for the Equipment segment accounted for 3% of the total revenue for 2020.
Nike’s equipment segment revenue in North America is approximately $0.5 billion.
Nike’s marketing expenses have been reduced by 4% compared to the previous fiscal year, which was around $3.75 billion.
Nike’s spending on advertisements was almost constant over the years. 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 scored 78 for its athletic shoes and outranked Adidas for the first time in five years. 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 kinds of sports, from cricket to NFL.
Nike is one of the world’s most prominent athlete sponsors, which spends over $6 billion per year in 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.
( Tracxn )
Nike has acquired 6 companies and invested in 8 more companies.
( ChinaLaborWatch )
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?
( PersonalUmich )
Some of the facts about Nike companies from certain regions are given below:
( BusinessToday )
( MacroTrends )
In 2020, Nike employees worldwide were approximately 75,400, a 1.69% decline from 2019, which was about 76,700.
( Vogue )
( CreativeMarket )
Carolyn Davidson, a graphic designer, designed Nike Swoosh in 1971. Her invoice for this design was $35. The success of the Swoosh landed her a job for 4 years, freelance work, and eventually $1 million.
( NikeNews )
Let’s find some of the facts:
|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|