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    Nike Inc (NKE)

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    NIKE, Inc. is a global leader in the design, development, marketing, and selling of athletic footwear, apparel, equipment, accessories, and services . The company's principal business activity revolves around performance athletic products under the NIKE Brand, Jordan Brand, and Converse . NIKE's operations are organized into geographic segments, including North America, Europe, Middle East & Africa (EMEA), Greater China, and Asia Pacific & Latin America (APLA), with significant contributions from the North American market .

    1. NIKE Brand - Focuses on performance athletic footwear, apparel, and equipment, contributing significantly to the company's overall revenue .

      • Footwear - Offers a wide range of performance athletic shoes designed for various sports and activities.
      • Apparel - Provides athletic clothing designed for performance and comfort.
      • Equipment - Includes sports equipment designed to enhance athletic performance.
    2. Jordan Brand - Specializes in athletic and casual footwear and apparel, known for its iconic designs and cultural influence .

    3. Converse - Offers casual sneakers, apparel, and accessories, known for its classic and timeless style .

    NamePositionStart DateShort Bio
    Mark ParkerExecutive Chairman1979Mark Parker has been with NIKE since 1979, serving in various roles including President and CEO from 2006 to January 2020. He became Executive Chairman in 2020 .
    John Donahoe IIPresident and Chief Executive OfficerJanuary 2020John Donahoe joined NIKE's Board in 2014 and became President and CEO in January 2020. He was previously CEO of ServiceNow and eBay .
    Matthew FriendExecutive Vice President and Chief Financial Officer2009Matthew Friend joined NIKE in 2009 and became CFO in 2020. He previously worked at Goldman Sachs and Morgan Stanley .
    Monique MathesonExecutive Vice President, Chief Human Resources Officer1998Monique Matheson joined NIKE in 1998 and has been Chief Human Resources Officer since 2017. She oversees global HR strategy .
    Ann MillerExecutive Vice President, Chief Legal Officer2007Ann Miller joined NIKE in 2007 and became Chief Legal Officer in 2022. She has held various roles in NIKE's legal department .
    Heidi O'NeillPresident, Consumer, Product & Brand1998Heidi O'Neill joined NIKE in 1998 and has been President, Consumer, Product & Brand since 2023. She leads global consumer teams and brand marketing .
    Craig WilliamsPresident, Geographies & Marketplace2019Craig Williams joined NIKE in 2019 and became President, Geographies & Marketplace in 2023. He oversees geographic units and supply chain .
    Elliott HillPresident and Chief Executive OfficerOctober 14, 2024Elliott Hill was appointed President and CEO effective October 14, 2024. He has over 32 years at NIKE and returned after founding Open Road Resources, LLC .
    John DonahoeAdvisor (until January 31, 2025)September 19, 2024John Donahoe transitioned to an advisory role on September 19, 2024, after serving as President and CEO. He will retire on January 31, 2025 .
    1. Given the significant declines in your classic footwear franchises and the expectation for continued double-digit drops in NIKE Direct, how do you plan to mitigate the immediate revenue impact while rebalancing your product portfolio?

    2. With NIKE Digital traffic underperforming and sales declining 20% in Q1, what specific strategies are you implementing to revive consumer engagement and drive growth in your online channels?

    3. In Greater China, you've faced traffic deceleration and elevated inventory in a promotional market; how are you addressing these challenges to restore momentum and capitalize on long-term growth opportunities in this critical region?

    4. Your spring '25 order books came in flat and below expectations despite positive feedback on new products; what concrete actions are you taking to ensure that new innovations will translate into actual sales growth in the coming seasons?

    5. Considering the pressures from higher promotional activity, channel mix headwinds, and supply chain deleverage on gross margins, what measures are you putting in place to protect profitability while investing in brand momentum and managing inventory levels?

    Program DetailsProgram 1
    Approval DateJune 2022
    End Date/DurationFour years
    Total additional amount$18 billion
    Remaining authorization$7.8 billion
    DetailsIntended to return value to shareholders, manage capital structure, and offset dilution from stock-based compensation

    Competitors mentioned in the company's latest 10K filing.

    • adidas
    • Anta
    • ASICS
    • Deckers
    • Li Ning
    • lululemon athletica
    • New Balance
    • On
    • Puma
    • Under Armour
    • V.F. Corporation

    These companies are mentioned as competitors in the athletic footwear, apparel, and equipment industry, which is described as highly competitive on a worldwide basis .

    NameStart DateEnd DateReason for Change
    PricewaterhouseCoopers LLP1974 PresentCurrent auditor

    Recent developments and announcements about NKE.

    Financial Reporting

      Earnings Call

      ·
      Dec 20, 2024, 5:14 AM

      Nike recently released its fiscal 2025 second quarter earnings call transcript, highlighting several key points about its financial performance and strategic initiatives. The company reported a decline in revenues by 8% on a reported basis and 9% on a currency-neutral basis, primarily due to headwinds from franchise management actions. Nike Direct sales were down 14%, with a significant 21% decline in Nike Digital sales, while wholesale sales decreased by 4% . Gross margins fell by 100 basis points to 43.6%, attributed to higher markdowns and wholesale discounts aimed at liquidating inventory .

      Management provided forward guidance, indicating a focus on repositioning the business to drive a pull market for Nike. This includes strategic actions to reduce inventory levels and elevate the consumer experience by growing organic traffic and driving full demand . The company is also shifting its product portfolio by reducing reliance on classic footwear franchises and increasing investment in new product innovations .

      Significant comments were made regarding market conditions, with Nike experiencing challenges in retail traffic and sales, particularly in North America and Greater China. However, there was positive momentum noted during key consumer moments like Black Friday and the 11/11 shopping festival in China .

      Analysts raised questions about Nike's relationships with retail partners and the company's efforts to regain shelf space. Management emphasized their commitment to leading a consumer-led marketplace and investing in innovative products to drive mutually profitable growth with wholesale partners .

      Overall, Nike is focused on strategic initiatives to stabilize its business, reignite brand momentum, and return to a healthy marketplace, despite current financial headwinds .

      Earnings Report

      ·
      Dec 19, 2024, 9:41 PM

      NIKE, Inc. has released its fiscal 2025 second-quarter earnings results, reporting revenues of $12.4 billion, which is a decrease of 8% on a reported basis compared to the prior year and a 9% decrease on a currency-neutral basis . The gross margin decreased by 100 basis points to 43.6%, primarily due to higher discounts and changes in channel mix, although this was partially offset by lower product input costs and reduced warehousing and logistics costs .

      Net income for the quarter was $1.2 billion, a decline of 26%, and diluted earnings per share were $0.78, a decrease of 24% . NIKE Direct revenues were $5.0 billion, down 13% on a reported basis and 14% on a currency-neutral basis, largely due to a 21% decrease in NIKE Brand Digital and a 2% decrease in NIKE-owned stores . Wholesale revenues were $6.9 billion, down 3% on a reported basis and 4% on a currency-neutral basis .

      The company also highlighted its continued commitment to shareholder returns, with dividends of $557 million, up 7% from the prior year, and share repurchases of $1.1 billion, reflecting 13.1 million shares retired as part of its four-year, $18 billion program .

      Overall, NIKE's financial performance reflects challenges in the current market environment, with declines across all geographies and product categories, but the company is taking steps to reposition its business and reignite brand momentum through sport .