Nike Business and Financial Statistics

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