Founded in 1964 originally selling athletics shoes manufactured for the brand in Japan, Nike has risen to become the world’s leading sportswear brand.
Today its ranges cover professional sports as well as lifestyle footwear and clothing – and it sells these globally, through its own stores, digital channels and via retail partners.
The company prides itself on creating innovative, must-have products. “We build deep, personal connections with consumers. And we deliver an integrated marketplace with compelling retail experiences,” the company says.
This latter point is especially true of online where sales have been growing steadily due to the company’s shift in focus away from its previous wholesale model to a direct-to-consumer strategy. Its switch in focus and investment in Nike Direct has seen the company reporting full year revenue in this part of the business increasing by 14%, or $18.7bn on 2020’s level. This includes digital growth of 18% and an increase in sales via Nike-owned stores of 10%.
This growth continues into the 2023 financial year with online growth outpacing total company revenue. Global sales increased by 25% online in Nike’s latest financial quarter, against a total Q2 revenue rise of 17%. Direct-to-consumer accounts for around 42% of the company’s revenue.
“Consumer demand for Nike’s portfolio of brands continues to drive strong business momentum in a dynamic environment,” says the company’s executive vice president and chief financial officer, Matthew Friend. “We remain focused on what we can control, and we are on track to deliver on our operational and financial goals – setting the foundation for sustainable, profitable growth.”
Company: Nike Position in the Global Elite 1000: Elite Headquarters: Beaverton, USA Founded: 1964 Online: www.nike.com
This article originally appeared in the RetailX Global Elite Top1000 2023 report and was authored by Emma Herrod
