Nike, Inc. is an American multinational corporation that focuses on designing, manufacturing, and marketing athletic footwear, apparel, accessories, equipment and services.
The company, based near Beaverton, Oregon, is publicly listed on the New York Stock Exchange under the stock ticker symbol ‘NKE’.
Its mission is “to bring inspiration and innovation to every athlete in the world”.
Nike, Inc.’s wholly-owned affiliates include:
Converse, Inc. – offers an extensive portfolio of premium lifestyle men’s and women’s footwear and apparel. Converse was founded in 1908 and is currently based in North Andover, Massachusetts.
Hurley International, LLC. – distributes action sports apparel for surfing, in addition to skateboarding and youth apparel.
Nike promotes its products using its highly recognized trademarks of “Just Do It” and the Swoosh logo, through sponsorship agreements with professional teams and well-known athletes.
The history of the company traces back to January 25, 1964, when Bill Bowerman (a track and field coach at the University of Oregon) and Phil Knight (a middle-distance runner from Portland) created a sports company called “Blue Ribbon Sports”.
Jeff Johnson became a full-time employee of Blue Ribbon Sports in 1965 and he had significant influence in the direction of the company. It was Johnson who thought of the name Nike and he designed several early Nike shoes. Blue Ribbon Sports officially changed its name to Nike, Inc. on May 30, 1971.
In 1980 Nike, Inc. completed its initial public offering and became a publicly traded company.
Nike, Inc. – Overview
- President and CEO: Mark G. Parker
- Chairman: Philip H. Knight
- Industry: Apparel and Accessories
- Type: Public
- Traded as ‘NKE’ on the New York Stock Exchange (NYSE)
- Revenue: $25.3 billion USD (2013)
- Net income: $2.485 billion USD (2013)
- Diluted earnings per share: $2.71 USD (2013)
- Founded: 1964
- Founders: Bill Bowerman and Phil Knight
- Employees: 44,000 (2012)
- Corporate headquarters: One Bowerman Drive, Beaverton, Oregon, USA
- Corporate contact number: (503) 671-6453
- Investor relations contact number: 1-800-640-8007
- Investor relations email: [email protected]
- Website: www.nikeinc.com
Nike, Inc. – Financial Results
| Operating data (in $ millions) | 2013 | 2012 |
| Revenues | $25,313 | $23,331 |
| Cost of sales | $14,279 | $13,183 |
| Gross profit | $11,034 | $10,148 |
| Gross margin | 43.6% | 43.5% |
| Demand creation expense | $2,745 | $2,607 |
| Operating overhead expense | $5,035 | $4,458 |
| Total selling and administrative expense | $7,780 | $7,065 |
| Income before income taxes | $3,272 | $3,025 |
| Net income from continuing operations | $2,464 | $2,269 |
| Net income (loss) from discontinued operations | $21 | $(46) |
| Net income | $2,485 | $2,223 |
| Income from continuing operations before income taxes | $4,251 | $4,145 |
| Provision for income taxes | $784 | $730 |
| Income from continuing operations | $3,467 | $3,415 |
| Income (loss) from discontinued operations, net of tax | – | $202 |
| Net income | $3,467 | $3,617 |
| Balance sheet data (in $ millions) | ||
| Total assets | $17,584 | $15,465 |
| Long-term debt | $1,210 | $228 |
| Total shareholders’ equity | $11,156 | $10,381 |
| Common share data (in $) | ||
| Basic earnings (loss) per common share | $2.77 | $2.42 |
| Diluted earnings (loss) per common share | $2.71 | $2.37 |
Source: “Nike, Inc. Fiscal 2013 – Q4 and Full Year Results”
Nike, Inc. – News
July 9, 2014: Nike has announced that it won’t be renewing its deal with Manchester United to manufacture the team’s kits. Nike has been making Manchester United kits for 13 years but the company said that it will stop when the current contract expires in 2015.
June 26, 2014: Nike reported very impressive fourth-quarter results that beat expectations, with Q4 revenues at $7.4 billion (an increase of 11% over the year before). The results are mainly due to impressive sales in North America and Western Europe.