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 cancelled
- 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
- Football
- Training
- Sportswear/ lifestyle
- Jordan Brand
- Secondary categories include American 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 trainers 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 centres, 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 centres
- Nike has a total of 81 distribution centres worldwide
- In the USA, Nike has 7 “significant” distribution centres:
- 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 centres
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 labour 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
