US-based Nike is the world leader in athletic footwear and apparel. The company was founded in January 1964 and is headquartered near Beaverton, Oregon. The company, which is traded as NKE on the New York Stock Exchange (NYSE), has acquired several footwear and apparel companies over its history such as Cole Haan, Bauer Hockey, Converse, Hurley International, Starter and Umbro. The Nike swoosh is one of the most recognized logos, as well as one of the most reputable athletic sponsors in the world.
Overall demand trends have been favorable in most regions, for both athletic footwear and apparel. The drivers of the good results include basketball, lifestyle running, and men and women’s apparel. Nike, along with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services. It focuses its Nike Brand product offerings on eight key categories: Running, Basketball (including the Jordon brand), Football (Soccer), Men’s Training, Women’s Training, Action Sports, Sportswear, and Golf. It also markets products designed for children, along with other recreational uses, including cricket, lacrosse, walking, and wrestling.
While Nike already has a presence in many emerging markets, there is still significant growth potential. Rapidly growing economies like China, along with other emerging markets like India and Brazil, have the potential to drive future earnings growth. Given Nike’s focus on R&D, the company is typically on the forefront on product innovation. While products like FuelBand, a wearable technology that monitors physical activity, may not have been as successful as hoped, Nike still has its eye on the next “big thing”.