NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories worldwide. The company offers NIKE brand products in six categories, including running, NIKE basketball, the Jordan brand, football, training, and sportswear. It also markets products designed for kids, as well as for other athletic and recreational uses, such as American football, baseball, cricket, golf, lacrosse, skateboarding, tennis, volleyball, walking, wrestling, and other outdoor activities; and apparel with licensed college and professional team, and league logos, as well as sells sports apparel. In addition, the company sells a line of performance equipment and accessories comprising bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities; and various plastic products to other manufacturers. Further, it provides athletic and casual footwear, apparel, and accessories under the Jumpman trademark; and casual sneakers, apparel, and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. Additionally, the company licenses agreements that permit unaffiliated parties to manufacture and sell apparel, digital devices, and applications and other equipment for sports activities under NIKE-owned trademarks. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other retail accounts through NIKE-owned retail stores, digital platforms, independent distributors, licensees, and sales representatives. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon. The company is publicly listed on NYSE under the ticker “NKE”.
Our considerations
NIKE Inc, is a company known worldwide which designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories. NIKE’s research, design and development effort is the key factor of its success, as the company leads the market through technical innovation in the design and manufacturing processes that help to improve athletic performances, decrease injuries, and reduce waste. Furthermore, the company cooperates with a wide team of bio-mechanics, chemists, and engineers, as well as research committees made up of athletes, coaches, trainers, equipment managers, orthopedists, podiatrists, and other experts, who help NIKE to review certain designs and materials, and improve the brand awareness. The development of products such as NIKE Air, Zoom, Free, Flywire, Dri-Fit, Flyknit, Flyweave, FlyEase, ZoomX, Air Max, React and Adapt technologies, shows the company’s improvements in innovative products. The combination of a strong brand and brand awareness makes NIKE a reliable long term investment, and gives it an edge over its competitors.
NIKE has also strong growth drivers: for example, the company is focusing on its Direct To Customer and digital businesses, which will continue to drive its long term revenue growth and, above all, expand its margins. Indeed, the shift to Direct To Customer channels provides higher margins than a wholesale business, because it enables retailers to charge at full price rather than at discounts. Moreover, NIKE outlined its plan to focus on selected retail partners such as Nordstrom and Foot Locker, while at the same time it closed the relationships with other retailers such as Shoe Show, Dillard’s, and Urban Outfitters.
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