Nike Business and Financial Statistics

Posted on 01 November, 2021 by Danny McLoughlin

Top Nike stats

  • Nike has a market cap of $259.93 billion
  • Nike’s revenue is $37.4 billion per year
  • Nike placed 85th in the Fortune 500 suggesting it is the 85th largest company in America by revenue
  • Nike is the world’s 13th most valuable brand according to Forbes, well ahead of Adidas who are 51st
  • Nike and the Nike swoosh logo has been registered in 170 jurisdictions around the world

Nike financial statistics

  • Nike revenues have grown 15.5% since 2016
  • From 2019 to 2020, Nike’s revenue declined by 4.4% -- mainly due to the Covid-19 pandemic
  • Nike does not confirm financial forecasts or projections by outside sources
  • Nike finished the year with $7.37 billion worth of inventory
  • 65% of Nike’s sales are wholesale with the remaining 35% being straight to consumer

USA vs International

  • Nike and Converse sales in the US make up 39% of Nike’s total, global revenue
  • The remaining 61% of revenue was made up from outside the US
  • 3 Nike customers in the USA made up almost a quarter (24%) of Nike revenue
  • Nike’s 3 largest international customers made up 15% of non-US sales
  • No single customer makes up more than 10% of Nike’s revenues

Covid-19 pandemic’s impact on Nike

  • Nike’s revenue dropped by $1.7 billion from 2019 to 2020, largely due to the pandemic
  • In their latest annual report, Nike stated “our financial condition and results of operations have been and are expected to continue to be adversely affected by the coronavirus pandemic”
  • The reasons Nike outlined were: 
    • Economic conditions got worse worldwide
    • Rise in unemployment
    • Reduced demand for their products
    • Sports seasons and mass gathering events were canceled
    • Store and factory closures
    • Increased costs from additional health and safety protocols including purchasing PPE and adapting processes
    • Bankruptcies, closures and reduced orders from wholesale customers
    • More volatile currency fluctuations and in price of raw materials

Nike products

  • Nike’s 6 most important product categories are:
    • Running
    • Basketball
    • Soccer
    • Training
    • Sportswear/ lifestyle
    • Jordan Brand
  • Secondary categories include American football, baseball, cricket, golf, lacrosse, skateboarding, tennis, volleyball, walking, and wrestling. 
  • 66% of Nike’s sales are footwear
  • 31% of Nike sales are apparel 
  • 3% of Nike sales are equipment

Nike marketing budget

Nike refers to it’s advertising, marketing and athlete endorsements as “Demand creation expenses.”

 

  • Demand creation expenses include:
    • Advertising
    • Endorsements
    • Complementary products
    • Brand events
    • Retail brand presentation
  • In 2020, Nike’s brand creation expenses were $3.59 billion
  • No company in the world spends as much money on sports sponsorships as Nike
  • Nike's first professional athlete was Romanian tennis player Ilie Nastase
  • The first track runner was Steve Prefontaine
  • Nike has 3 athletes on billion-dollar endorsement contracts:
    • LeBron James, Cristiano Ronaldo and Michael Jordan all have lifetime deals
    • Michael Jordan signed up with Nike in 1984
    • Nike expected to sell $4 million of Jordan sneakers in the first 4 years of the deal
    • In the first month, Nike sold $70 million worth
    • And within a year had sold $126 million
    • Jordan is paid 5% royalties for each sale and is thought to have made $1.3 billion from the partnership
    • Nike and Jordan brand currently enjoy 86% and 96% market share in performance basketball and lifestyle basketball categories respectively
  • Nike has $9.34 billion dollars earmarked for endorsement contracts, including:
    • $1.33 billion in 2021
    • $1.47 billion in 2022
    • $1.18 billion in 2023
    • $1.06 billion in 2024
    • $1.14 billion in 2025
    • $3.16 billion due after 2026 onwards

Nike stores, factories, distribution centers, and real-estate

  • Nike owns buildings worth over $2.44 billion
  • And machinery and equipment worth over $2.75 billion
  • Nike has a total of 1,096 stores around the world
  • In the USA, there are 338 stores:
    • 212 Nike factory stores
    • 28 in-line and employee stores
    • 98 Converse stores
  • Nike has 758 stores outside of the US:
    • 212 Nike factory stores
    • 28 in-line and employee stores
    • 98 Converse stores

Distribution centers

  • Nike has a total of 81 distribution centers worldwide
  • In the USA, Nike has 7 “significant” distribution centers:
    • 4 in Memphis, Tennessee
    • 1 in Indianapolis, Indiana
    • 1 in Dayton, Tennessee
    • 1 in Ontario, California (Converse)
  • Outside of the US, they have 74 distribution centers

Nike manufacturing and outsourcing

  • Nike is supplied by a total of 451 factories
    • Footwear - 122 factories in 12 countries
    • Apparel - 329 factories in 38 countries
  • More than 15 outsourced contractors produce almost 100% of Nike footwear
  • Almost all Nike footwear is manufactured outside the USA
  • The largest footwear factory makes almost 10% of all Nike footwear
  • 4 manufacturers each make more than 10% of all Nike footwear and combined make 61% of all Nike footwear
  • 50% of Nike footwear is made in Vietnam
  • 24% of Nike footwear is made in Indonesia
  • 22% of Nike footwear is made in China
  • The largest apparel contractor makes 11% of Nike apparel
  • 28% of Nike apparel is made in Vietnam
  • 23% of Nike apparel is made in China
  • 12% of Nike apparel is made in Cambodia
  • The five largest contractors make 48% of Nike apparel

Nike employee statistics

  • The median Nike employee - a retail store employee in the United States - is paid $28,142
  • Nike has 75,400 employees worldwide 
  • No Nike employees are represented by a trade union outside of regions where it is required by law
  • Nike has never experienced a material interruption of operations due to labor disagreements

Nike executives

How much does Nike management get paid?

  • Nike CEO’s, John Donahoe, total compensation is $53.5 million
  • Name Nike executives are paid between $3.3 million and $53.5 million per year
  • Nike’s CEO is paid 1935 times what the median employee is paid ($28,142)
  • Apple’s Tim Cook is a non-employee director and receives $345,049 per year in compensation
Author
Danny McLoughlin
Danny McLoughlin

Danny is a sports nut with a particular interest in football and running. He loves to watch sports as much as he loves to play. Danny was lead researcher on RunRepeat and The PFA’s report into Racial Bias in Football Commentary. His football and running research has been featured in The Guardian, BBC, New York Times and Washington Post.