Financial Report Nike

Nike, Inc. is an American multinational corporation that is engaged in the design, development and worldwide marketing and selling of footwear, apparel, equipment, accessories and services. The company is headquartered near Beaverton, Oregon, in the Portland metropolitan area. It is the world 's leading supplier of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$24.1 billion in its fiscal year 2012 (ending May 31, 2012). As of 2012, it employed more than 44,000 people worldwide. The brand alone is valued at $10.7 Billion making it the most valuable brand among sports businesses. Nike and Precision Castparts are the only Fortune

NIKE, Inc., is a company that was founded in by William Jay Bowerman and Philip H. Knight in 1964, and was originally called Blue Ribbon Sports, Inc. It’s name was changed to Nike, Inc. in 1971. It’s base of operation is located in Beaverton, Oregon. NIKE, Inc., is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities worldwide. Entirely owned Nike subsidiaries include Converse Inc., a brand that develops, advertises, and sells athletic apparel and accessories; and also Hurley International LLC, which designs, markets and sells surf and youth lifestyle clothing and many different accessories. Its athletic footwear products are designed primarily for specific athletic use, although a large percentage of the products are worn for casual or leisure purposes. Nike offers products in many different categories such as men’s/women’s training, running, basketball, golf, and more. The company also sells products designed for children and youth athletic activities such as baseball, cricket, lacrosse, outdoor activities, football, tennis, volleyball, walking, and wrestling. Also, Nike sells sports apparel and accessories; and markets apparel with licensed college and professional team and league logos. Further, it sells a line of performance equipment and accessories, including sports bags, balls, eyewear, digital devices, bats, gloves, protective equipment, golf

Today Nike Inc is the largest manufacturer of sports footwear, apparel and equipment with worldwide revenue in excess of $25 billion in 2012 under various labels including Nike, Nike Golf, Converse and Hurley. Seventy percent of the company’s value is derived from footwear and apparel sold under the main brand Nike with Nike footwear commanding a market share

During the 2011 fiscal year, Nike seemed to have a down year compared to 2010 as seen in Figure 1.1:

Every year thousands of stocks are brought and sold. This buying and selling of stocks stimulates the economy while maintaining a healthy relationship between buyers and sellers. Nike is a corporation that operates in the Textile Apparel Footwear and Accessories industry. Nike offers common stock and the purchasing price of the stock was $123.46. Nike has promoted its products through commercials that show famous athletes wearing the brand.

Nike is a strong brand at the global market and it normally sells the product in the market with high price to get higher margins and profit value. However, many competitors cost of the footwear

However during the last reported years the company kept a stable reserve of cash and increased its short term investments especially in the last year from 5.16 to 8.78 of total assets. While Nike had decreased gross receivable over the years and from 23.1 in FY 08 to 22.6 in FY 09 of total assets, it considerably increased its provisions for doubtful accounts. This might be a precautionary measure on part of the company in the face of the financial crisis the occurred in the last reported year, which eventually resulted in decreasing the company’s net receivables from 22.4 to 21.7 of total assets in FY 09. Nike’s inventory has been slightly fluctuating over the reported years. The clear decrease in the company’s inventory in FY 09 cannot be explained by more sales as sales grew by only 2% as seen from the income statement. Therefore, the less inventory in the last year might be caused by the Company’s slowing down of its manufacturing process for fear of not being to sell its finished goods due to the

Nike’s primary product focus is athletic footwear designed for specific-sport and/or leisure use. Nike is the world 's largest supplier of athletic footwear, with an estimated share of 50% of the $20 billion market. Sports apparel and equipment are also sold under the Nike banner. Nike is classified under the Footwear manufacturing and marketing

Competition is very fierce due to the number of companies competing for sales. Lots of money goes to marketing and promotions using various channels to reach the young demographic group of consumers who spend the most money on Nike’s products. Growth is slowing down in the athletic footwear industry. But new markets are emerging with high growth rates. These markets include extreme sports market and the corporate merchandise market.

Furthermore, due to yearly sporting events such as UEFA Champions league, Super Bowl and the enormous interest in sport generally, the demand for sport products are high.

I would recommend that the Nike stock should be expressed as a hold because its net income is quite small compared to the revenue it earns. Nike’s cost of goods sold is extremely high, even when they make most of their products overseas in third world countries. Their revenue growth has also drastically slowed down only from five years ago when they had a growth rate of 35.9% in 1995 and 42% in 1996. The past four years Nike had an average growth rate of revenue at 0.975%, which is less than 1%. For a company the size of Nike and the previous large growth it had, something might have been wrong. Their net income,has also as a percentage gone down. The Nike stock should be considered a hold for investors who already own the

Nike was founded in 1964 and is headquartered in Beaverton, Oregon. It is the world’s largest supplier of athletic apparel and sports equipment, worth over 105 billion dollars. Nike sells its products to retail accounts, through Nike-owned retail stores and Internet Websites through a mix of independent distributors and licensees throughout the world. Independent contractors manufacture all of Nike’s products; including all of its footwear and apparel products, which are produced outside the United States. The company has around 48,000 employees worldwide in North America, Western Europe, Central & Eastern Europe, Greater China, Japan and Emerging Markets.

In order to properly discuss Nike’s issues, it is important to first look at the apparel industry and the economy as a whole to determine how Nike compares to it. The apparel industry, more specifically the athletic apparel market, is a very dynamic industry to be in. Because of

Nike, Inc. has been the world’s leading innovator and provider in athletic footwear, apparel, equipment and accessories for 50 years. Their mission has been to bring inspiration and innovation to every athlete in the world; if you have a body, you are an athlete. Arguably one of the most innovative companies in the world, Nike has built its brand into an iconic world-class powerhouse that continues to dominate the market with no signs of slowing up. Nike’s marketing and advertising have been breakthrough, aspirational, and legendary over the years, featuring high-profile athletes and heroes.

Nike Inc. has many sources of revenue streams which is that broken down into different segments. Each segment represents the different fields in which Nike operates. The segments are targeted towards design for men, women and children. Running, basketball, cross training and women’s shoes are the company’s top-selling products categories. Nike also produces shoes for the outdoor categories, tennis, golf, football, baseball, cycling and other athletic and recreational uses. Today Nike, Inc. is now the world’s prominent innovator