Finance & Investment ClubFinance & Investment Club
Nike Inc.Nike Inc. Just do itJust do it
Investology: Investology: Ali Bakhshandehfard Ali Bakhshandehfard Jonathan YinJonathan YinJamie DuqueJamie DuqueBo PengBo Peng
Company ProfileCompany Profile
Founded in 1972Founded in 1972
Headquartered in Beaverton, OregonHeadquartered in Beaverton, Oregon
Mark Parker-CEO and PresidentMark Parker-CEO and President
Industry-Sportswear and Sports Industry-Sportswear and Sports EquipmentEquipment
Number of Employees-30,002Number of Employees-30,002
Main Competitors: Reebok, ADIDAS, AND Main Competitors: Reebok, ADIDAS, AND 1, Converse1, Converse
Company Profile Cont.Company Profile Cont.
Famous athletes include: Kobe Bryant, Famous athletes include: Kobe Bryant, Lebron James, LT, Cristiano Ronaldo, Lebron James, LT, Cristiano Ronaldo, Cesc FabregasCesc Fabregas
Produce many commercials shown Produce many commercials shown worldwideworldwide
StatisticsStatistics
Price: $67.75Price: $67.75Mkt Cap: 33.44B Mkt Cap: 33.44B 52Wk High: 70.60 52Wk High: 70.60 52Wk Low: 51.50 52Wk Low: 51.50 P/E: 18.76 P/E: 18.76 Forward P/E: 18.96 Forward P/E: 18.96 Beta: 0.64 Beta: 0.64 Shares: 492.71M Shares: 492.71M Vol: 1.56M Vol: 1.56M EPS: 3.61 Dividend: 0.23EPS: 3.61 Dividend: 0.23Inst. Own: 72%Inst. Own: 72%
Company AnalysisCompany Analysis
NIKE: Goddess of victory.NIKE: Goddess of victory.– Founded by University of Oregon, Phil Knight & Bill Founded by University of Oregon, Phil Knight & Bill
Bowerman in Jan, 1964. Bowerman in Jan, 1964. – Track running shoes.Track running shoes.
Engages in the design, development, and Engages in the design, development, and marketing of footwear, apparel, equipment, and marketing of footwear, apparel, equipment, and accessory products worldwide. accessory products worldwide. By 1980, 50% market share in the United States By 1980, 50% market share in the United States athletic shoe market.athletic shoe market.Went public in December 1980. Went public in December 1980.
Textile - Apparel Footwear & Textile - Apparel Footwear & AccessoriesAccessories
Leaders in Market Capitalization Leaders in Market Capitalization
NIKE INC [[NKE] ] $33.3 B $33.3 B
COACH INC [ [COH] ] $12.5 B $12.5 B
DECKERS OUTDOOR CP [ [DECK] ] $1.8 B $1.8 B
WOLVERINE WORLDWIDE [ [WWW] ] $1.4 B $1.4 B
SKECHERS USA INC [ [SKX] ] $1.1 B $1.1 B
TIMBERLAND CO A [ [TBL] ] $1.1 B $1.1 B
CROCS, INC. [ [CROX] ] $910.3 M $910.3 M
ICONIX BRAND GROUP [ [ICON] ] $820.6 M $820.6 M
BROWN SHOE CO INC [BWS] [BWS] $681.3 M $681.3 M
VOLCOM, INC. [VLCM] VOLCOM, INC. [VLCM] $635.6 M$635.6 M
SWOT AnalysisSWOT Analysis
Nike Inc.Nike Inc.
Strengths:Strengths:– Very efficient company, best among its sector. Very efficient company, best among its sector.
Benefiting from low costs due to its Benefiting from low costs due to its outsourcing of production jobsoutsourcing of production jobs
– Concentrating on their strengths. Soccer, Concentrating on their strengths. Soccer, basketball and golfbasketball and golf
– Partnership with other strong brands (ex. Partnership with other strong brands (ex. Apple)Apple)
– Higher ROA than competitorsHigher ROA than competitors
Nike Inc.Nike Inc.
Weakness and ThreatsWeakness and Threats– Possible loss of market share due to the Possible loss of market share due to the
Reebok- Adidas mergeReebok- Adidas merge– Sluggish economy may influence buyers Sluggish economy may influence buyers
towards cheaper goods.towards cheaper goods.– Up-start firms like Under Armour are building Up-start firms like Under Armour are building
niche markets.niche markets.
Nike Inc.Nike Inc.
OpportunitiesOpportunities– Strong global sales and growth. Nike is Strong global sales and growth. Nike is
looking to expand in China primarily, due to looking to expand in China primarily, due to this summers Olympics.this summers Olympics.
– Continued expansion into custom shoe Continued expansion into custom shoe business.business.
Technical AnalysisTechnical Analysis
Technical AnalysisTechnical Analysis
RecommendationRecommendation
Based on our research we rate Nike Inc. a Based on our research we rate Nike Inc. a HOLDHOLD because even though they are a because even though they are a dominant company the current recession dominant company the current recession is not a good time for luxury goods such is not a good time for luxury goods such as 150 dollar sneakers and most other as 150 dollar sneakers and most other Nike goods.Nike goods.