The company sells products on its channels, including tech-enhanced stores and the SNKRS app, where fans can wait for upcoming product releases. Cutting down on the middlemen may result in higher profit margins and give the company greater control over how its products are presented.
A survey of 10K US teens released last week placed Nike in the top spot among their favourite footwear and apparel brands. Shares are up Bonus shares are additional shares given to the current shareholders without any additional cost, based upon the number of shares that a shareholder owns. Disclaimer: The content of this article has been created and published by Winvesta India Technologies Pvt.
The Information is not intended to offer advice, target or solicit any particular customer or group of customers to buy or sell securities. Winvesta does not render any research or advisory services and provides a more detailed description of its services on its website and mobile application along with the terms and conditions published therein from time to time. Other factors contributing to this decline include elevated freight costs including airfreight to meet strong demand for select NIKE Brand products , higher inventory obsolescence reserves and higher royalty expenses related to sales of endorsed team products.
These factors more than offset the positive impact of growing sales in our Direct to Consumer operations and ongoing product cost reduction initiatives. Footwear and Apparel revenues, up 20 and 28 percent, respectively, were driven by strong category presentations, improved product lines and earlier shipments of summer season product.
We continue to see momentum in our Direct to Consumer business with sales up 23 percent. This increase was driven by an 18 percent improvement in same store sales and 31 percent growth in online sales. Western Europe Fourth quarter revenues for Western Europe grew 5 percent with 4 percentage points of benefit from changes in currency exchange rates.
On a constant currency basis, revenues grew in every territory except France and Northern Europe. Football Soccer revenues were flat for the quarter. Central and Eastern Europe Reported fourth quarter revenues for Central and Eastern Europe increased 1 percent, but were down 1 percent on a currency neutral basis as higher revenues in Russia were offset by declines in most other territories.
By category, currency neutral double digit revenue growth in Running, Basketball and Action Sports was more than offset by declines in other key categories, primarily Sportswear and Football Soccer.
Greater China Revenues in Greater China during the fourth quarter increased 21 percent, up 16 percent excluding the impact of changes in currency exchange rates driven by expanding points of distribution and comp store sales increases. These are the core obsessions that drive our newsroom—defining topics of seismic importance to the global economy.
Our emails are made to shine in your inbox, with something fresh every morning, afternoon, and weekend. Most of its sales have come from selling to wholesale partners such as department stores, mom-and-pop shops, sporting goods specialists, and all the thousands of retail businesses Nike has long relied on to distribute its products to shoppers. That balance is rapidly shifting. These figures exclude sales of products from subsidiary brands such as Converse. We and the consumer were one and the same.
When we started making shoes for basketball, tennis, and football, we did essentially the same thing we had done in running. We got to know the players at the top of the game and did everything we could to understand what they needed, both from a technological and a design perspective. Our engineers and designers spent a lot of time talking to the athletes about what they needed both functionally and aesthetically.
It was effective—to a point. But we were missing something. Despite great products and great ad campaigns, sales just stayed flat. We were missing an immense group. We saw them as being at the top of a pyramid, with weekend jocks in the middle of the pyramid, and everybody else who wore athletic shoes at the bottom. But that was an oversimplification. Just take something simple like the color of the shoe. One of our great racing shoes, the Sock Racer, failed for exactly that reason: we made it bright bumble-bee yellow, and it turned everybody off.
To understand the rest of the pyramid, we do a lot of work at the grass-roots level. We go to amateur sports events and spend time at gyms and tennis courts talking to people.
We have people who tell us what colors are going to be in for , for instance, and we incorporate them. Beyond that, we do some fairly typical kinds of market research, but lots of it—spending time in stores and watching what happens across the counter, getting reports from dealers, doing focus groups, tracking responses to our ads.
We just sort of factor all that information into the computer between the ears and come up with conclusions. Understanding the consumer is just part of good marketing. You also have to understand the brand.
That whole experience forced us to define what the Nike brand really meant, and it taught us the importance of focus. Without focus, the whole brand is at risk. The ends of the earth might be right off that ledge! Once you say that, you have focus, and you can automatically rule out certain options.
To a point. A brand is something that has a clear-cut identity among consumers, which a company creates by sending out a clear, consistent message over a period of years until it achieves a critical mass of marketing.
Otherwise the meaning gets fuzzy and confused, and before long, the brand is on the way out. Look at the Nike brand. From the start, everybody understood that Nike was a running shoe company, and the brand stood for excellence in track and field.
It was a very clear message, and Nike was very successful. But casual shoes sent a different message. People got confused, and Nike began to lose its magic. Retailers were unenthusiastic, athletes were looking at the alternatives, and sales slowed. So not only was the casual shoe effort a failure, but it was diluting our trademark and hurting us in running.
By breaking things into digestible chunks and creating separate brands or sub-brands to represent them. Have I taken the thing too far? What we hit on in the mids was the Air Jordan basketball shoe. Its success showed us that slicing things up into digestible chunks was the wave of the future. The Air Jordan project was the result of a concerted effort to shake things up. With sales stagnating, we knew we had to do more than produce another great Nike running shoe. So we created a whole new segment within Nike focused on basketball, and we borrowed the air-cushion technology we had used in running shoes to make an air-cushioned basketball shoe.
Basketball, unlike casual shoes, was all about performance, so it fit under the Nike umbrella. And the shoe itself was terrific. It was so colorful that the NBA banned it—which was great! Michael Jordan wore the shoes despite being threatened with fines, and, of course, he played like no one has ever played before. It was everything you could ask for, and sales just took off. To recruit young tennis players and sign them to endorsement contracts to wear and promote Nike tennis shoes and apparel, I scout the junior tennis circuit for athletes with a combination of talent, character, and style.
Talent is the most important ingredient for a Nike athlete. To promote our shoes, a player has to have a chance at being one of the best in the game. Character is also important. By getting to know athletes in their early teens, I can tell if they are the type of people who would work well with Nike over the long term. Are they committed to the sport? Do they have a sense of humor? Do they have an attitude that the public will embrace?
There are plenty of players who meet the first two requirements, but only Nike athletes meet the third: a distinctive sense of style. People expect Nike to perform to a high standard and to make a statement at the same time.
Our athletes do the same thing. When I started at Nike tennis, John McEnroe was the most visible player in the world, and he was already part of the Nike family. He epitomized the type of player Nike wanted in its shoes—talented, dedicated, and loud. He broke racquets, drew fines, and, most of all, won matches. His success and behavior drew attention on and off the court and put a lot of people in Nikes.
By the end of the s, McEnroe was ready to hand over the angry young man mantle to become more of a tennis elder statesman. And he wanted his Nike image to reflect his new attitude. This coincided perfectly with the emergence of Andre Agassi. Even then, image was everything to Andre. He had long hair on one side of his head and no hair on the other.
From a marketing standpoint, Andre was the perfect vehicle for Nike. Like us, he was anti-tennis establishment and he was different. For as bold and irreverent as Challenge Court is, Supreme Court is tuxedo tennis. We use the players not only to market and design our products but also to set a positive example for the sport. Andre Agassi, for example, has been integral in attracting a lot of young players to the game—and a lot of young players to Nike.
Like Michael Jordan in basketball, Andre transcends the sport of tennis. They put them in too many tournaments and, for most kids, burn them out quickly. That gives tennis a bad image and sends the wrong message to kids who might want to take up the game.
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