Business Description

NIKE, Inc. develops, markets, designs, and sells athletic footwear, accessories, apparel, and equipment. The company was established in 1964 and is headquartered in Beaverton. The company operates in the following regions: North America, Europe, the the Asia Pacific & Latin America Middle East and Africa; Greater China; Global Brand Divisions, Converse, Corporate.

The design, development, and marketing of athletic footwear, apparel, and equipment are done in North America, Europe, Greater China, the Middle East, Africa, and the Asia Pacific and Latin America segments. The global brand divisions are NIKE Brand licensing companies. Converse designs markets, apparel, and licenses casual footwear and accessories. The corporate segment includes unallocated general expenses and administrative costs.

Key Financials

Revenue (US$ Mn):

• US$ 44,538 Mn was the annual revenue generated by NIKE, Inc. in 2021
• NIKE, Inc.’s annual revenue for 2020 was US$ 37,403 Mn, a -4.38% decrease from 2019
• From 2018’s annual revenues, NIKE, Inc. registered a 7.47% increase in 2019, amounting to US$ 39,117 Mn
• Total revenue of US$ 36,397 Mn was generated in 2018 by NIKE, Inc.

Operating Income (US$ Mn):

• NIKE, Inc.’s operating income for 2021 was US$ 5,953 Mn, a 91.11% increase from 2020
• The operating income generated by NIKE, Inc. in 2020 was US$ 3,115 Mn
• At a 7.36% increase from , NIKE, Inc.’s operating income of US$ 4,772 Mn was indexed in 2019
• NIKE, Inc. generated an operating income of US$ 4,445 Mn in 2018

Net Income (US$ Mn):

• US$ 5,727 Mn was the net income generated by NIKE, Inc. in 2021
• NIKE, Inc.’s net income for 2020 was US$ 2,539 Mn, a -36.98% decrease from 2019
• From 2018’s net incomes, NIKE, Inc. registered a 108.43% increase in 2019, amounting to US$ 4,029 Mn
• A net income of US$ 1,933 Mn was generated in 2018 by NIKE, Inc.

Operating Margin %:

• NIKE, Inc.’s operating margin for 2021 was 13%, a 60.24% increase from 2020
• The operating margin generated by NIKE, Inc. in 2020 was 8%
• At a 0% decrease from , NIKE, Inc.’s operating margin of 12% was indexed in 2019
• NIKE, Inc. generated an operating margin of 12% in 2018

Gross Margin %:

• NIKE, Inc.’s gross margin for 2021 was 45%, a 3.23% increase from 2020
• The gross margin generated by NIKE, Inc. in 2020 was 43%
• At a 2.05% increase from , NIKE, Inc.’s gross margin of 45% was indexed in 2019
• NIKE, Inc. generated a gross margin of 44% in 2018

SWOT Analysis

Strengths

Revenue Growth

The company’s strong revenue growth helps it gain investor confidence and improve its ability to allocate sufficient funds for future growth opportunities. Nike’s FY2019 revenue was US$39,117million, compared to US$36,397 million in FY2018. This is an increase of 7.5%. The increase in the demand for Converse and NIKE products was responsible for revenue growth.

Increased Nike brand revenue was due in part to the Consumer Direct Offense’s continual delivery of innovative products, strong brand relationships, and effective retail experiences for its customers via its mobile apps, e-commerce websites, partner and company-owned shops, and digital partner platforms and wholesale customers. The revenue growth was also due to a 3% increase in North America, Greater China, and Europe, the Middle East, Africa (EMEA), and Greater China, and 2% from Asia-Pacific, and Latin America (APLA).

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