NKE

Nike: business and financial analysis of the apparel giant

The world's largest apparel brand shows above-average profitability but faces supply chain challenges.

By the SpyStocks desk · 4y ago · 2 min read

$NKE

Nike is the largest apparel brand in the world!

It designs, develops, and markets sportswear, footwear, equipment, and accessories in 6 main categories: running, basketball, soccer, training, athletic apparel, and "Jordan".

It is important to emphasize: footwear generates about two-thirds of Nike's sales!

The company sells products worldwide and leverages outsourced manufacturing from 300 factories in over 30 countries!

The company recently published data reflecting that revenue reached $12 billion and operating income stood at $2 billion.

Earnings were above expectations, but the stock fell 6% afterward due to expected supply issues.

When you buy Nike merchandise, for every dollar you pay the company, after it has paid the cost of shoes and apparel to suppliers and after distribution expenses, 47 cents remain!

After ancillary expenses (marketing, taxes, etc.), Nike retains 15 cents from every dollar it sells!

Is that a lot or a little? It's more than the average company in the S&P 500 index, which retains less than 13 cents!

The company's high profit margin reflects its strength!

Analysts: image attached.

Current price: $148.8. Market cap: $234 billion. Debt-to-equity ratio: 0.4. Risk level: low. Company name: NIKE.

- Nothing stated herein constitutes a recommendation! -

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