When we talk about Nike’s success, the conversation often centers around its financial might.
As of 2024, Nike net worth is a testament to its dominance in the sportswear market.
Join me, Ando Money, as we break down Nike’s key revenue drivers and financial performance for a closer look at what keeps this iconic brand thriving.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Nike, Inc. |
| Full Name | Nike, Inc. |
| Website | nike.com |
| Industry | Sportswear, Apparel, Equipment |
| Traded as | NYSE: NKE |
| ISIN | US6541061031 |
| Founded | January 25, 1964 |
| Founders | Bill Bowerman, Phil Knight |
| Country/Territory | United States |
| Headquarters | Beaverton, Oregon, U.S. |
| Chief Executive Officer | John Donahoe |
| Number of Employees | 83,700 |
| Market Cap | $122.2 billion (as of October 2024) |
| Total Assets | $38.1 billion (as of May 31, 2024) |
| Total Equity | $14.43 billion (as of May 31, 2024) |
| Revenue | $51.4 billion (Fiscal Year 2024) |
| Net Income | $5.7 billion (Fiscal Year 2024) |
What is the Net Worth/Market Cap of Nike in 2024?
In 2024, Nike’s market cap stands at $122.2 billion, securing its position as one of the most valuable companies globally.
This figure reflects the total market value of Nike’s outstanding shares, which has kept it competitive among other giants in the industry. To put this into perspective, Nike’s value rivals many other prominent players.
Here are some of the competitors and related brands:
- Adidas
- Under Armour
- Puma
- Converse
- Reebok
- Jordan Brand
- New Balance
- Asics
- Vans
- Skechers
If you’re curious about more companies leading the global market, explore this list of the wealthiest businesses at richest companies.
Nike Financial Performance Overview
Revenue Overview and Key Financial Figures
Nike’s total revenue for fiscal year 2024 reached $51.4 billion, reflecting a 1% increase compared to the previous year. Despite challenges in certain regions, Nike’s ability to maintain steady growth speaks to its powerful market presence.
Regionally, North America remains Nike’s largest revenue contributor, though performance slightly declined by 1%.
Conversely, the Greater China market saw growth, contributing positively to Nike’s overall performance with a 4% increase in regional sales. Nike’s strategy continues to adapt to meet global demands.
Key Revenue Drivers
One of Nike’s primary revenue drivers is its footwear segment, which generated 64.7% of total sales in 2023.
The apparel segment followed, contributing 27%. Notably, Nike’s equipment sales also grew, accounting for 3.4% of total revenue.
Nike’s Jordan Brand remains a significant factor in the company’s success, experiencing 6% growth year-over-year.
In contrast, Converse, Nike’s subsidiary, has faced challenges, with its revenue falling by 18% in the most recent quarter.
Brand-Specific Contributions to Revenue
Nike’s Jordan Brand continues to be a powerful force, especially in footwear. It delivered a robust 6% growth over the last fiscal year, contributing significantly to the company’s overall revenue.
However, the performance of Converse was not as strong, showing a 17% decrease in revenue on a currency-neutral basis, driven primarily by declines in North America and Western Europe.
Regional Revenue Analysis
In terms of geographic performance, North America accounts for 42.2% of Nike’s total revenue. Though this region saw a minor decline, it still remains the brand’s largest market.
In contrast, Greater China continues to show promise with a 4% growth, bolstered by strong consumer demand and the increasing importance of digital commerce.
EMEA (Europe, Middle East, and Africa) and APLA (Asia Pacific & Latin America) collectively represent over 38% of Nike’s global revenue, with both regions showing resilience and steady growth in key categories like footwear and apparel.
Strategic Pricing and Gross Margin Growth
Nike’s gross margin grew by 110 basis points to 44.7% in the fourth quarter of 2024, thanks to strategic pricing actions and lower costs related to logistics and freight.
These improvements reflect Nike’s ability to navigate complex global supply chains while maintaining profitability. Moreover, this margin growth is particularly notable given the challenges posed by unfavorable currency exchange rates.
Operating and Administrative Expenses
Nike’s selling and administrative expenses decreased by 7% in the fourth quarter, driven largely by a reduction in wage-related costs.
Despite this, Nike continues to invest heavily in demand creation efforts, spending $1.1 billion on marketing and advertising in Q4 2024.
Nike’s operating overhead also dropped by 9% thanks to ongoing restructuring efforts. These restructuring charges, amounting to $39 million, aim to streamline operations and position Nike for sustainable long-term growth.
Inventory Management and Cash Flow
Nike’s inventory levels decreased by 11% compared to the prior year, reflecting improvements in the company’s supply chain efficiency.
This reduction in inventory also contributed to a stronger cash flow, with $11.6 billion in cash and short-term investments as of May 31, 2024.
By managing inventory more effectively, Nike was able to align production with consumer demand, reducing excess stock and minimizing associated costs.
Key Financial Indicators for Long-term Growth
For long-term financial health, Nike’s net income for fiscal year 2024 was an impressive $5.7 billion, up 12% from the previous year. The company’s earnings per share (EPS) for the same period stood at $3.73, with a significant return to shareholders through both dividends and share repurchase programs.
Nike’s total equity reached $14.43 billion as of May 2024, and its commitment to repurchasing shares further signals its confidence in continued profitability.
FAQs About Nike
What are Nike’s primary revenue drivers?
Nike’s revenue is driven largely by its footwear segment, which accounts for over 64% of total sales, followed by apparel at 27% and equipment at 3.4%.
How did Nike perform in Greater China in 2024?
Greater China saw positive performance in 2024, with a 4% increase in regional revenue driven by strong demand for both footwear and apparel.
What is its gross margin growth in 2024?
Its gross margin increased by 110 basis points, reaching 44.7% in Q4 2024, thanks to strategic pricing and lower logistics costs.
How has Nike managed its inventory in 2024?
The company effectively reduced its inventory by 11% compared to 2023, leading to better cash flow and stronger alignment between supply and demand.
What restructuring efforts did Nike undergo in 2024?
Nike’s restructuring efforts in 2024 included a $39 million charge, aimed at reducing operating overhead and positioning the company for sustainable growth.
Conclusion
Nike continues to dominate the global sportswear market through smart financial strategies and effective management. Feel free to explore more content or leave your thoughts at Ando Money.
