Company Overview - Nike Inc.
Nike, Inc., is known as the world's "largest" athletic and apparel seller. The company was incorporated in 1967 and is headquartered in Beaverton, Oregon. As of May 2018, the company had 73,100 employees working in its offices and retail stores worldwide. At the end of its 2018 fiscal year, the company generated total revenue of $36.39 billion.
- Nike, Inc was incorporated in the State of Oregon in 1967. The company's core business is the "design, development and worldwide marketing and sales" of apparel, equipment, footwear, accessories and services.
- The company describes itself as the "largest" apparel and athletic footwear seller worldwide.
- The company markets and sells its products through its retail stores, digital platforms, independent distributors, retail accounts, licensees, and sales representatives, located in several countries around the world.
- Nike offers products in 6 major categories which are Nike basketball, football (soccer), sportswear, training, running, the Jordan brand. They also create products for other recreational and athletic uses including cricket, American football, tennis, wrestling, lacrosse, and volleyball, as well as products for kids.
- Under the Nike brand name, the company still markets and sells accessories and performance equipment such as sports balls, bags, timepieces, eyewear, and socks.
- Nike IHM, Inc. which is a wholly-owned subsidiary of the company, operates as an air manufacturing innovation business and sells a variety of plastic products in small quantities to manufacturers.
- The company has a total of 392 retail stores within the U.S. alone, and 790 retail stores globally in several countries including Israel, Indonesia, Croatia, China, Malaysia, the UAE, Slovakia, Panama, and Norway.
- Its footwear products are manufactured by 124 factories in 13 countries, with the largest factory accounting for 9% of its total revenue for 2018. Its apparel products are manufactured across 37 countries, in 328 different factories, with the largest factory accounting for 13%.
- Nike Inc has 3 brands, they are Jordan, Converse, and Hurley.
- The Jordan brand is responsible for the "design, distribution, and licensing" of casual and athletic footwear, accessories, and apparel mainly for basketball.
- Headquartered in Boston, Massachusetts, the Converse brand "designs distributes, and licenses" accessories, apparel, and casual sneakers, under the All-Star, One Star, Star Chevron, Converse, Chuck Taylor, and Jack Purcell trademarks.
- Hurley which is a wholly-owned subsidiary of Nike, Inc, and is based in Costa Mesa, California. The Hurley brand is responsible for "designing and distributing" accessories, action sports, and youth lifestyle apparel.
- In 2017, the company generated revenue of $34.3 billion with a gross profit of $15.3 billion, and in 2018, the company generated revenue of $36.3 billion with a gross profit of $15.9 billion.
- Its footwear product segment remains the top-earning segment in 2018 generating revenue of $22.2 billion. The second highest revenue generating product segment is the apparel segment, which generated revenue of $10.7 billion.
- The company's gross margin for the 2017 fiscal year is 44.6%, while its 2018 fiscal year saw a reduction of 0.8% with a gross margin of 43.8%.
- According to a CSI market report, Nike, Inc. holds a 33.62% market share in the footwear segment, a 12.98% market share in the apparel segment, and a 6.96% share in the equipment and other products segment.
- Philip H Knight currently serves as the company's Chairman Emeritus. He is one of the company's co-founders and served as president from 1986 - 1990, and from June 2000 – 2004.
- Mark Parker is the current chairman, president and CEO of the company.
- Andy Campion is an executive vice-president and the company's chief financial officer.
- Elliott Hill, president of consumer and marketplace.
- Hilary Krane, executive vice-president, chief administrative officer and general counsel.
- Monique Matheson, executive vice-president, global human resources.
- John Slusher, executive vice-president, global sports marketing.
- Michael Spillane, president of categories and product.
- Eric Sprunk is the company's chief operating officer.
- Nike, Inc. places emphasis on "technical innovation" in the design and manufacturing of its apparel, athletic equipment, and footwear products, with the aim of improving athletic performance, maximizing comfort, reducing waste and injuries.
- They are focused on leveraging and incorporating new technology in the design of innovative products across all their product categories.
- Regarding the incorporation of new technology, the company is looking to increase the use of the following technologies Zoom, free, Dri-Fit, Flyweave, ZoomX, Nike+, and React.
To fulfill this request, we commenced our research on the company's website, where we quickly identified the company's latest annual report for 2018, which contained a majority of the required information including its history, business overview, financial details, and strategic priorities. Regarding key executives of the company, we were able to retrieve the information on the company's website, and have listed them above. Lastly, we made use of a report made available by CSI Market to retrieve information on the company's market share as it relates to its business segments.