Nike vs. Under Armour Essay

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What industry are the companies in?

Nike; one of the most well known companies across the globe today is most known for being the world’s #1 shoemaker. They design and sell shoes for a variety of sports including baseball, golf, tennis and football. Nike also sells dress and casual shoes as well as athletic apparel and equipment for almost every sport imaginable. In addition Nike also operates NIKETOWN shoe and sportswear stores, factory outlets along with Nike women shops. One of Nike’s biggest competitors on the rise is Under Armour, Inc. Under Armour; the primary maker of performance athletic underwear and apparel has risen to the top with main competitor Nike. The company has also begun to become a factor in the footwear market as
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There were some significant differences in the two company’s statements. For example, Nike incurred a net loss of $60.6 million from their operating activities where as Under Armour experienced a $69.52 million gain. Another significant figure is the difference in the total cash dividends paid. Over the course of the year, Nike paid $412.9 million in cash dividends where as Under Armour paid no cash dividends during the year. However, when it came to the cash balance differences between 2008 and 2007, Nike increased its cash by $277.2 million where as Under Armour only increased its cash by $61.45 million.

Accounts Receivable
Under Armor had a decrease from $93, 515 thousand in 2007 to $81,302 thousand in 2008. The decrease during 2008 was primarily due to improved collection efforts and a lower percentage growth in net sales during the fourth quarter of 2008 as compared to the same period in the prior year. During the fourth quarter of 2008, net sales increased by 1.4% as compared to an increase of 29% during the fourth quarter of 2007.
Nike’s net accounts receivable had increased from $2,494.7 million on May 31, 2007 to $2,795.3 million on May 31, 2008. They has been dealing with a higher accounts receivable balance as a result of a longer collection cycle, reflecting a more challenging retail environment experienced by their customers in the EMEA and U.S.

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