With total revenues of $51.217 billion in fiscal 2023, Nike is the world’s largest seller of athletic footwear and apparel.
Its total revenues grew at a year-on-year rate of 10% in that year, which ended last May 31.
In general, the footwear, apparel and sports equipment industry is highly competitive on a global scale.
The Company competes with a significant number of athletic and leisure footwear and apparel companies, sports equipment companies and large companies with diversified lines of athletic and leisure footwear, apparel and equipment.
Competitors include: adidas, Anta, ASICS, Li Ning, lululemon athletica, New Balance, Puma, Under Armour and V.F. Corporation, among others.
Nike reported net earnings of $5.07 billion in fiscal 2023, down 16% year-over-year.
Nike
Intense competition and rapid changes in technology and consumer preferences in the athletic and leisure footwear and apparel and sports equipment markets are significant risk factors in its operations.
According to Nike, important aspects of competition in this industry are:
Product attributes such as quality; performance and reliability; style, design, innovation and new product development; as well as price/value to the consumer.
Consumer connection, engagement and affinity with brands and products, developed through marketing, promotion and digital experiences, social media interaction, customer care and service, identification with prominent and influential athletes, influencers, public figures, coaches, teams, universities and sports leagues that promote their brands and use their products, and active engagement through sponsored sporting events and clinics.
Effective sourcing and distribution of products, with engaging merchandising and presentation at the point of sale, both in stores and on digital platforms.
Nike’s core business is the design, development, marketing and worldwide sale of athletic footwear, apparel, equipment, accessories and services.
Almost all of its products are manufactured by independent contractors.
Almost all footwear and apparel products are manufactured outside the United States, while equipment products are manufactured both in the United States and abroad.