Wait a second!
More handpicked essays just for you.
More handpicked essays just for you.
Financial statement analysis for nike
Financial statement analysis for nike
Nike history and analysis
Don’t take our word for it - see why 10 million students trust us with their essay needs.
Recommended: Financial statement analysis for nike
Nike Growing up as a kid, and being an athlete Nike was always my favorite product. I loved wearing their shoes and clothes. I remembered the days growing up with Michael Jordan as the face of Nike; then witnessing LeBron James, Kevin Durant, and Paul George becoming today’s well known faces of Nike. They have always been known for the athletic apparel. Now we look into some of Nike’s background and financial records.
History
Lara O’Reilly from Business Insider explains, “that Nike was founded 1964 as Blue Ribbon Sports and initially operated as a distributor for the Japanese shoemaker Onitsuka Tiger (now known as Asics). (O’Reilly, 2017) Nike did not become Nike Inc. until 1971. In 1964 when Nike was founded, it was by the man Bill Bowerman.
…show more content…
Nike seen growth in the company between 2010-2015. Nike used top athletes to partner with in order to bring in more success. From Yahoo finances I will talking about some key financial information which includes; revenue, gross margin percentage, net income and key ratios. In 2016 Nike went up 6 percent to $32.4 billion; and had a 12 percent growth excluding currency changes. (Nike, Inc./ American Company, 2017) From Nike.com it explains, “Revenues for the NIKE Brand were $7.7 billion, up 8 percent on a currency-neutral basis driven by double-digit growth in Western Europe, Greater China, Emerging Markets and Japan, including strong growth in Sportswear, Global Football and the Jordan Brand. Revenues for Converse were $513 million, up 18 percent on a currency-neutral basis, mainly driven by a major system go-live that accelerated orders from the fourth quarter to the third quarter in the prior year.” (Nike, Inc./ American Company, …show more content…
(Nike, Inc./ American Company, 2017) Their net income continue to grow in a great year for Nike. Net was about $58 million, and was primarily comprised of net foreign currency exchange gains. “For the quarter, the Company estimates the year-over-year change in foreign currency-related gains and losses included in other income, net, combined with the impact of changes in exchange rates on the translation of foreign currency-denominated profits, decreased pretax income by approximately $66 million.” (Nike, Inc./ American Company,
Nike generally has the largest earnings and highest gains to its share holders among all their American competitors (excluding adidas which is a German corporation). Nikes rising popularity creates a major stock demand and trade because it is one of the best performing mega-cap stocks rising 700%. Nikes Profit margins has expanded to 45% which which gives them and opportunity to
The key to increasing revenue for Nike branch is to make the product as cheaply as possible and keeping the cost of transporting low. Then sell the brand to countries
Ford held an analysts’ meeting to disclose its fiscal-year 2001 results and most importantly, to communicate a strategy for revitalizing the company. Nike had maintained revenue of about 9 billion since 1997. However, its net income had fallen from almost $800 million to $580 million. Moreover, Nike’s market share in U.S. athletic shoes had fallen from 48% since 1997 to 42% in 2000.
Nike is a worldwide known business that many people around the globe are attracted to purchase. They make a variety of products ranging from shoes and clothes to sports gear, sports products, and many different accessories. Nike is designed for everyone ranging from infants to elderly. Because of their range of age for products, this makes them a huge competitor. Being able to appeal to all ages and styles of people.
The corporation should invest more money in research and innovation since this is what has helped them to make a product that rivals their competitors. At the same time, it is imperative for them to improve their machinery for cheap labor costs which will help the company increase its production allowing it to meet the demand in the market. By improving production leading to lower costs of making shoes, apparel, and equipment, Nike will achieve higher demand assuming a quality product is maintained in that process. They will stand a better chance of competing in the industry (Hill, 2009). The organization is already in a better position for meeting the demand, customer taste, and needs. The company should improve quality by focusing on developing lightweight products that are more durable compared to those offered by the competitors. Also, Nike can keep up their success by continuing to reinvent and improve their items and continue to meet the current demand by using new technology. It can also use the Internet to communicate with consumers (Hill, 2009). By developing new technology, Nike will allow the customers to suggest and design their shoes online. To achieve this goal, it is fundamental to enhance areas such as their website to make it more user-friendly. Finally, the company should pay attention to small startup organizations that enter the
Only a week earlier, on June 28, 2001, Nike had held an analysts' meeting to disclose its fiscal-year 2001 results.1 The meeting, however, had another purpose: Nike management wanted to communicate a strategy for revitalizing the company. Since 1997, its revenues had plateaued at around $9 billion, while net income had fallen from almost $800 million to $580 million (see Exhibit 1). Nike's market share in U.S. athletic shoes had fallen from 48%, in 1997, to 42% in 2000.2 In addition, recent supply-chain issues and the adverse effect of a strong dollar had negatively affected revenue.
In 1965 two men by the names of Bill Bowerman and Phil Knight started Blue Ribbon Sports, now known as Nike, the business almost instantly became a top competitor. In 2012 Nike was said to have a net worth of 67 billion dollars, and co-founder Phil Knight a net worth of 18.7 billion dollars. The amount of profit Nike has attained is eye- opening, which made individuals that much more infuriated when they discovered Nike was accused of having sweatshops internationally. The accusations began in 1991 when activist Jeff Ballinger published a report, documenting the harsh conditions workers were forced to work in. Acknowledging the fact that Nike’s business plan was more about making profit than treating employees with any dignity. Nike’s strategy seemed to be to enter into poor nations where individuals were desperate for work. In 1996 it has been ...
Nike was first known as Blue Ribbon Sports, founded by University of Oregon track athlete Philip Knight and his coach Bill Bowerman in 1962. It officially became Nike, Inc. in 1978 while taking its name after the Greek goddess of victory. Mark Parker is the current CEO and Phil Knight still continues to hold a position at the top of the organization, as the company Chairman.
Under Amour Company ventured into a market segment that was overcrowded, it had thousands of companies that competed against each other. Out of the many companies involved in the trade, the two most formidable threats seemed to be orchestrated by Nike and Adidas. These are two giant sports apparel and footwear, which pride themselves as having been long term veterans in the industry. Nike in particular was christened as the ultimate shoe and athletic apparel company with revenues of $18.6 billion, net income of $1.9 billion and more than thirty two thousand employees globally in the year 2008. This makes it the largest athletic shoe and apparel seller in the world.
Nike’s Asian operations had previously continued to soar generating US$300 million in 1994 in revenues to a whopping US$1.2 billion in 1997. However based on the Asian economic crisis, this had adversely affected revenues, while regional layoffs were inevitable. Nike also performed well in the European market generating about US$2 billion in sales and a good growth momentum was expected, however, some parts of Europe were only slowly recovering from an economic downturn. In the Americas (Canada and the U.S.A.), Nike experienced a growth rate for several quarters. The U.S. alone generated approximately US$5 billion in sales. The Latin American market at this point was exposed to economic volatility; however Nike still saw them as a market with “great potential for the future”.
Nike, which is the Greek goddess of victory, was born in 1972, when BRS launched its first branded shoe at the U.S. Olympic track and field trials. Over the next decade, the company nearly doubled in size each year. In 1978, BRS officially changed its corporate name to that of the Nike brand.
Nike Inc. was founded in 1962 by Bill Bowerman and Phil Knight as a partnership under the name, Blue Ribbon Sports. Our modest goal then was to distribute low-cost, high-quality Japanese athletic shoes to American consumers in an attempt to break Germany's domination of the domestic industry. In 2000 Nike Inc. not only manufactured and distributed athletic shoes at every marketable price point to a global market, but over 40% of our sales came from athletic apparel, sports equipment, and subsidiary ventures. Nike maintains traditional and non-traditional distribution channels in more than 100 countries targeting its primary market regions: United States, Europe, Asia Pacific, and the Americas (not including the United States).
Nike’s positioning in the market has more of a mass appeal compared to their main competitor Adidas who strive to make products for elite athletes. The positioning strategy for Nike is currently working at a satisfactory level as Nikes global annual sales between 2013-2014 was reported as 27.8 billion (Statista, 2014) compared to Adidas’ 19.95 billion (Statista, 2014). The global market for sports apparel is expected to grow at a compound annual growth rate of 4% between 2012-2019, Nikes compound annual growth rate during 2010-2012 was 12.3% which is an excellent result as the brand’s growth was larger than the market as well as outgrowing Nike’s closest competitors Adidas, Puma and Asics (Forbes,
Nike American Sportswear generated revenue of 7495 million US dollars in 2014, which was almost double of 2009 revenue of Nike Sportswear (Statista, 2015).The sales of (Athletic) Sportswear of Nike 90 million US dollars, however, the sale of Adidas Sportswear (Competitor of Nike) was 25 million US dollars, which was not even one third of Nike Sportswear sales (Statista, 2015).Nonetheless, the return on assets and equity are 13.41% and 26.43% respectively (Yahoo Finanace, 2015).
Nike inc. which all the other companies are trying to be like. Some changes are