Every professional was once an amateur. – Nike.
I bought this Air Max shoes a few years back, and it is still going great. It is comfortable and looks cool. This is my second Air Max Shoes and I intend to use it until it bit the dust. They are really durable shoes, and they are good for casual wear or running or sports.
They have attended meetings with directors and seen mountains of formidable size and unforgiving terrain. Good fit for everything.
My love of quality Nike products (and sometime overpriced) has opened my senses towards its stock.
Nike (NKE) designs, develops, markets and sells athletic footwear, apparel, equipment, accessories, and services worldwide. They are the largest seller of athletic footwear and apparel in the world.
Financial Overview
Nike’s revenue was 27 billion in 2014, and it rose to 36 billion in 2018. Majority of its revenue comes from North America. Analysts hav a huge concern about it since the growth in this geographical reason is slowed down. But, I have high faith in the stability and authenticity of the North American market.
Its net income decreased in 2018 because of the tax act.
Nevertheless, the cash provided by operations is 4.9 billion in 2018 versus 3.8 in 2017. (Full Financial analysis in future posts.)
Its market capitalization is $134 billion.
Advertising
Most of the expenditure of Nike is its sponsorship to athletes and sports teams. It is a win-win strategy for both athletes and Nike. Although Nike reaps more benefit from it.
Nike sponsor the majority of the best athletes, clubs, and National Teams in the world in pretty much all sports category. Like.
- Tiger Woods
- Roger Federer
- Rafael Nadal
- Lionel Messi (Barcelona FC)
- Christiano Ronaldo
- Dallas Cowboys
- Serena Williams
- Neymar
- Manchester City
- Chelsea … and a lot more.
Like so many other, I am a big fan of their creative ads.
One of the commercial from Nike’s official channel in YouTube.
Management
I have read an autobiography of Phil Knight, co-founder of Nike. He is a phenomenon entrepreneur.
Currently, Mark G. Parker leads Nike. He is a great leader. Also, he is a great salary negotiator!
- Forbes named him the business-person of the year in 2015.
- In 2016, his compensation was $47 million. He was named one of the highest paid CEO in the world.
- And, in 2017, his compensation was reduced by 71% due to bad sales performance.
- Now he earns 14 million a year. Much better, yet it is still in the high side.
Final Thought
By and large, the current market capitalization of $134 billion is quite high, despite the awesomeness of its business and managers.
Nevertheless, Nike is one of the best brand in the world. And it always sells for a premium.
Just do it, my friend!
Disclaimer: Long position.
Arrow of Performance 