Revenue grew 8. Nike said that its revenue performance was impacted by strength in digital growth, which was offset by lower revenue in its wholesale business and its company-owned stores. The company also noted that it experienced temporary closures of stores in regions seeing rising COVID cases and that some regions continue to experience declines in physical retail traffic. However, the majority of Nike's stores remain open. Nike also breaks out revenue, but not profits, for its major product lines and distribution channels.
A negligible amount is attributable to Other, which includes revenue from licensing businesses of the Global Brand Divisions and Converse segments, and to foreign currency hedge gains and losses accounted for in the Corporate segment. Nike reports both revenue and earnings before interest and taxes EBIT , its primary measure for evaluating operating performance, for its geographic business segments.
The data reported in the pie charts above and in the share percentage calculations in the breakdowns below exclude segments with negative revenue or negative profits. The segment's revenue grew 0. Revenue and EBIT for the quarter rose Revenue and EBIT were up Revenue and EBIT rose 0.
Nike's Global Brand Divisions segment revenue is primarily attributable to NIKE Brand's licensing businesses that are not part of any of the geographic segments, demand creation and operating overhead expense, and costs associated with its global digital operations and enterprise technology. Nike's Converse segment is engaged in the design, distribution, licensing and sale of casual sneakers, apparel, and accessories under the following trademarks: Converse, Chuck Taylor, All-Star, One Star, Star Chevron, and Jack Purcell.
Revenue fell 0. Nike's Corporate segment revenue primarily consists of foreign currency hedge gains and losses related to revenues generated by Nike's other operating segments.
The Direct to Consumer distribution channel grew The CDA program, first announced in June, aims to accelerate its digital transformation in order to generate long-term growth and profitability. As part of our effort to improve the awareness of the importance of diversity in companies , we offer investors a glimpse into the transparency of Nike and its commitment to diversity, inclusiveness, and social responsibility.
We examined the data Nike releases to show you how it reports the diversity of its board and workforce to help readers make educated purchasing and investing decisions. Below is a table of potential diversity measurements. Accessed Jan. Accessed Feb. Accessed Aug. Company Profiles. Growth Stocks. A decile score of 1 indicates lower governance risk, while a 10 indicates higher governance risk.
Advertise with us. All rights reserved. Data Disclaimer Help Suggestions. Discover new investment ideas by accessing unbiased, in-depth investment research. John J. Donahoe II. Chief Operating Officer. Heidi O'Neill. Philip H. In early Nike announced expansion into a number of new lines, in cluding casual apparel for women, a less expensive line of athletic s hoes called Street Socks, golf shoes, and tennis gear marketed under the name "Wimbledon.
At that point, the company sold its 51 percent stake in Nike-Japan to its Japanese partner; six months later, Nike laid of f 10 percent of its U. Following these moves, Nike announced a drop in revenues and earnings in , and another round of restructuring and budget cuts ensued, as the company attempted to come to grips with the continuing evoluti on of the U.
Only Nike's innovative Air athletic sh oes provided a bright spot in the company's otherwise erratic progres s, allowing the company to regain market share from rival Reebok Inte rnational Ltd. A dvertising heavily, the company took a commanding lead in sales to yo ung people to claim 23 percent of the overall athletic shoe market.
The company's product innovation continued, including the introductio n of a basketball shoe with an inflatable collar around the ankle, so ld under the brand name Air Pressure. In addition, Nike continued its aggressive marketing, using ads featuring Michael Jordan and actor-d irector Spike Lee, the ongoing "Just Do It" campaign, and the "Bo Kno ws" television spots featuring athlete Bo Jackson.
At the end of , the company began relocation to its newly constructed headquarters campus in Beaverton, Oregon. In the company sued two competitors for copying the patented des igns of its shoes and found itself engaged in a dispute with the U. Customs Service over import duties on its Air Jordan basketball shoe s.
The company acq uired Tetra Plastics Inc. That year, the company opened NikeTown, a prototype store selling the full range of Nike products, in Portland, Oregon.
Ni ke's U. The company began eyeing overseas markets and predicted ample roo m to grow in Europe. Nike's U. Nike also saw growth potential in its women's shoe and sports apparel division. Sales of Nike women's apparel lines Fitness Ess entials, Elite Aerobics, Physical Elements, and All Condition Gear in creased by 25 percent in both and and jumped by 68 percent in Like its predecessor in Portland, the Chicago NikeTown was designed to "combine the fun and excitement of FAO Schwartz, the Smithsonian I nstitute and Disneyland in a space that will entertain sports and fit ness fans from around the world" as well as provide a high-profile re tail outlet for Nike's rapidly expanding lines of footwear and clothi ng.
To celebrate its anniversary, Nike brought out its o ld slogan "There is no finish line. Nike continued expansion of its high-profile NikeTown chain, opening outlets in Atlanta, Georgia, in the spring of and Costa Mesa, Ca lifornia, later that year.
Also in , as part of its long-term mar keting strategy, Nike began an ambitious venture with Mike Ovitz's Cr eative Artists Agency to organize and package sports events under the Nike name, a move that potentially led the company into competition with sports management giants such as ProServ, IMG, and Advantage Int ernational.
Nike also began a more controversial venture into the arena of sports agents, negotiating contracts for basketball's Scottie Pippin, Alonz o Mourning, and others in addition to retaining athletes such as Mich ael Jordan and Charles Barkley as company spokespersons. Nike's influ ence in the world of sports grew to such a degree that in Spo rting News dubbed Knight the most powerful man in sports. Critics contended that Nike's influence ran too deep, having its hand in negotiating everything in an athlete's life from investments to t he choice of an apartment.
But Nike's marketing executives saw it as part of a campaign to create an image of Nike not just as a product l ine but as a lifestyle, a "Nike attitude. Nearly everyone agreed, however, that Nike was the dominant force in athletic footwear in the early to mids. The company held about 3 0 percent of the U. Not content with its leading position in athletic shoes and its growing sales of athletic apparel, which accounted for more than 30 percent of revenues in , Nike branched out into spo rts equipment in the mids.
In the company acquired Canstar Sports Inc. Canstar was renamed Bauer Nike Hockey In c. Two years lat er Bauer Nike became part of the newly formed Nike equipment division , which aimed to extend the company into the marketing of sport balls , protective gear, eyewear, and watches. Also during this period, Nik e signed its next superstar spokesperson, Tiger Woods. The golf phenom went on to win an inordinate number of tourn aments, often shattering course records, and was on pace to eclipse g olf legend Jack Nicklaus's illustrious lifetime record of winning 18 majors, more than validating the blockbuster contract.
Overseas sales pl ayed a large role in the 42 percent increase in revenues from to Back home, Nike's share of the U. The picture at Nike soon turned sour, however, as the Asian financial crisis that erupted in the summer of sent sneaker sale s in that region plunging. Compounding the company's troubles was a concurrent s tagnation of sales in its domestic market, where the fickle tastes of teenagers began turning away from athletic shoes to hiking boots and other casual "brown shoes.
Nike was also dogged throughout the late s by protests and boycot ts over allegations regarding the treatment of workers at the contrac t factories in Asia that employed nearly , people and that made the bulk of Nike shoes and much of its apparel.
Charges included abu se of workers, poor working conditions, low wages, and use of child l abor. Nike's initial reaction, which was highlighted by Knight's insi stence that the company had little control over its suppliers, result ed in waves of negative publicity. Protesters included church groups, students at universities that had apparel and footwear contracts wit h Nike, and socially conscious investment funds.
Nike finally announc ed in mid a series of changes affecting its contract workforce i n Asia, including an increase in the minimum age, a tightening of air quality standards, and a pledge to allow independent inspections of factories. Nike nonetheless remained under pressure from activists in to the 21st century. Nike, along with McDonald's Corporation, the Coc a-Cola Company, and Starbucks Corporation, among others, also became an object of protest from those who were attacking multinational comp anies that pushed global brands.
This undercurrent of hostility burst into the spotlight in late when some of the more aggressive pro testers against a World Trade Organization meeting in Seattle attempt ed to storm a NikeTown outlet. Seeking to recapture the growth of the early to mids, Nike pursu ed a number of new initiatives in the late s. Having initially mi ssed out on the trend toward extreme sports such as skateboarding, m ountain biking, and snowboarding , Nike attempted to rectify this mis cue by establishing a unit called ACG, short for "all-conditions gear ," in Two years later, the company created a new division calle d Techlab to market a line of sports-technology accessories, such as a digital audio player, a high-altitude wrist compass, and a portable heart-rate monitor.
Both of these initiatives were aimed at capturin g sales from the emerging Generation Y demographic group. In early 19 99 Nike began selling its shoes and other products directly to consum ers via the company web site. The company finally earned some good pu blicity in when it sponsored the U. In December Nike cofounder Bo werman died, and the company later introduced a line of running shoes in his honor. Nike's struggles continued into the early s, but by the comp any appeared to have turned a corner.
Surprisingly, the turnaround st emmed in large part not from clever marketing or new high-tech sneake rs but from concentrating more attention on the more mundane aspects of running a business, such as investing in start-of-the-art informat ion systems, logistics, and supply-chain management.
Equally importan t was Knight's willingness to cede more control of the company to a n umber of underlings, some recruited from the outside. Donald W.
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