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NKE
Company-description

Nike, Inc. (NKE) was founded by Bill Bowerman and Phil Knight in January 1964 as Blue Ribbon Sports. It was officially renamed Nike – after the Greek goddess of victory – in 1971. The company is a leader in the global athletic footwear industry. It currently generates 59% of its revenues from outside North America, and is the 60th most popular brand in the world, as per 2013 data from the Brand Directory, compared to Adidas at 187. The company has two major segments, NIKE Brand and Other Businesses with NIKE Brand accounting for over 90% of the company’s total revenues. The Other Businesses segment includes Converse, NIKE Golf and Hurley International

Nike’s Company Description (NKE)

Nike, Inc. (NKE) was founded by Bill Bowerman and Phil Knight in January 1964 as Blue Ribbon Sports. The company sold 1,300 pairs of running shoes in its first year of operations, generating $8,000 in sales. It rang up $20,000 on the cash register in the following year, and opened its first retail store in 1966. The company continued to expand, and was officially renamed Nike – after the Greek goddess of victory – in 1971. It is currently headquartered near Beaverton, Oregon, andcontinued expansion has made it the leader in the global athletic footwear industry.

Nike currently generates around 59% of its revenues outside North America, and is the 30th most popular brand in the world, as per 2012 data from the Brand Directory. It manufactures athletic footwear and apparel through independent contractors in countries like Vietnam, China and Indonesia. These products are then sold to customers all around the world through wholesalers, company-owned retail outlets and e-commerce websites. The company holds an impressive portfolio of many famous brands, including NIKE, Jordan, Converse and Hurley.

Business Segments

NIKE Brand

The segment deals in various athletic footwear, apparel and sports equipment products, which it sells around the world. It is focused on running, basketball, football, men’s and women’s training and action sports products. The segment’s revenues include sales from Nike’s famous Jordan brand of basketball products.

Other Businesses

This segment includes the NIKE Golf brand, and Nike’s subsidiary companies, Converse Inc. and Hurley International. NIKE Golf specializes and focuses on golf footwear, apparel and equipment, while Converse is focused on athletic and casual footwear and apparel products. The latter’s famous brands include Converse, Chuck Taylor, All Star, One Star, etc. Hurley International focuses on action sports and youth lifestyle products, and sells them under the Hurley brand.

Corporate

The segment comprises unallocated general and administrative operations. It includes centrally-managed departments, and is accountable for hedging activities, etc.

 

3yr Revenue CAGR

NIKE Brand

11.7%

 

 

North America

15.8%

Western Europe

2%

Central & Eastern Europe     

3.8%

Greater China

12.1%

Japan

-3.6%

Emerging Markets

22.1%

Global Brand Divisions

N/A

 

 

Other Businesses

-1.4%

 

 

Converse

13.8%

Hurley International

7.4%

NIKE Golf

5.6%

 

 

Corporate

N/A

 

 

 Major Product Categories

{{Adjust this table in the pie-chart}}

Product Category            

2yr Annual Growth

 

 

Footwear

12.3%

Apparel

11.2%

Equipment

17.2%

Others

11.2%

 

Company’s Financials

Stock Price

$76*

Market Cap

$67.6 billion*

Average Daily Volume (90-day avg.)      

4.2 million*

P/E Multiple (Forward 1yr)

23x

 

 

Revenues FY13

$25.3 billion

Net Earnings FY13

$2.5 billion

Dividend Yield FY13

1.5%

 

 

5yr Revenue CAGR

6.3%

Operating Margins FY13

12.9%

 



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