Nike 's Financial Analysis : Nike

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Nike’s Financial Analysis Katelynn Hill Cornerstone University Nike Financial Analysis On January 25th, 1964 a hand shake changed the world. It was on this day that a track athlete, Phil Knight, and his previous coach, Bill Bowerman, from the University of Oregon founded Blue Ribbon Sports. Blue Ribbon Sports operated under this name for roughly eight years, and then became known as the globally infamous, Nike. In 1972 the first line of Nike footwear debuted. The company was so successful that in its first year Nike,Inc. cleared 1.96 million dollars in sales and was the go to shoe of the 1972 Olympics. This was unchartered territory, and Nike took it’s exclusivity of the market and ran with it. Nike’s first and most long term…show more content…
Such said competitors include Under Armour, Lululemon Athletica, New Balance, Addidas and Puma amongst many more smaller companies. Under Armour Formed in 1996, out of Baltimore Maryland, Under Armour is one of Nike’s largest competitors. Instead of specializing in shoes, Under Armour specializes in special athletic clothing that is specialized to keep cool, keep warm, or even keeps dry. While Nike has been the overall leader with longevity and success, Under Armour is aggressively growing. In 2014 alone, Under Armour had a net earning of thirty two percent. Under Armour is a force to watch. They have been slowly getting deals that Nike, INC. would have assumedly surely had, including some national athletic teams and many very successful athletes. Lululemon Athletica Lululemon Athletica is a athletic apparel company as well. This company mainly focuses on yoga clothing, but also branches into swim and running apparel. Lululemon has an appeal to its customers that Nike cannot provide. This company was a grass roots underground company that began its production in a small yoga studio and sought out its own customers. Nike, INC. is now such a large company it has lost this small corporate feel and this is important to some customers. Analysis Gross Profit Margin In 2014, Nike Inc. had gross profit margin of 44.77%. This number has been steadily increasing since 2012. The gross profit margin is a percentage that indicates the amount of

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