Nike Inc

Performance indicators

2021: Record turnover of $44.5 billion

2020

Revenue from sales of sports shoes - $23.3 billion

Largest Sports Brands Revenue from Footwear Sales, 2017-2020

Sales growth of 70%

In fiscal 2020, Nike increased sales by 70% more than expected, mainly thanks to "direct-to-consumer" B2C, reduced intermediaries and sales promotions at traditional retailers.

Direct sales to consumers grew almost 5 times in absolute terms, from $2.5 billion dollars in 2010 to $12.4 billion in 2020.

Popularity of brands in Europe at the end of 2020

Business in Russia

Franchisees:

• Nike Retail

2022

Claim on violation of consumer rights in Russia

In August 2022, Nike was sued for violation of consumer rights in Russia. The organization "Public Consumer Initiative" believes that the company, having announced its departure from the country, has ceased to fulfill its warranty obligations to its clients.

Closure of the site and mobile application in Russia

On June 23, 2022, Nike announced that its stores in Russia would no longer open, the official website and mobile application would not be available in the country.

Continuation of work in Russia through multi-brand stores

On May 27, 2022, it was announced that Nike continues to operate in Russia, but only in the format of supplying its products to multi-brand stores.

History

2024

CEO John Donahia's sacking after stock slumps 25%

On September 19, 2024, the American manufacturer of sports goods Nike announced that the president and CEO of the company, John Donahue, would resign. Former Nike top executive Elliot Hill will take his place. Read more here

Mass layoffs

On February 15, 2024, the American manufacturer of sports goods Nike announced a restructuring, during which it plans to reduce the number of personnel by about 2% on a global scale. This is expected to help reduce costs and optimize financial flows, which is important in the current macroeconomic situation.

As of May 31, 2023, Nike had about 83.7 thousand employees. Thus, layoffs will affect between 1,600 and 1,700 people. At the same time, as noted by The Wall Street Journal, the company does not intend to reduce employees of stores and distribution centers, as well as an innovative team.

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Pexels

The actions we are taking provide an opportunity to adjust the size of the company in order to realize the growth opportunities available against the background of the continuing interest in sports, health and well-being, Nike said in a statement.

Dismissed workers will receive monetary compensation and other payments due. The costs associated with the reorganization are expected to range from $400 million to $450 million in the third quarter of 2024. Nike CEO John Donahoe said the company is using its resources to increase investment in categories such as running, women's clothing and the Jordan brand.

In December 2023, Nike announced its intention to cut costs by about $2 billion over the next three years. The savings program provides for limiting the supply of certain products, improving logistics, reducing management levels and introducing automation tools. The business is negatively affected by the reduced purchasing power of consumers who are forced to cut costs due to high inflation and rising prices for consumer goods.^[1]

2021: Purchase of NFT Developer for RTFKT Metaverse

In mid-December 2021, Nike announced the acquisition of NFT studio RTFKT, which specializes in creating collectible items for metaverse. The terms of the deal were not disclosed, Nike expects the agreement to accelerate the company's digital transformation. Read more here.

2019: Buying Celect AI platform to better anticipate buyer behaviour

In early August 2019, Nike announced the acquisition of the Celect AI platform to better anticipate buyer behavior. Read more here.

1984

Photo of Michael Jordan, taken in 1984, which later became the logo of Air Jordan - a name brand developed by the American company Nike