10 Things to Know About Nike
Nike is a global brand unlike many. Whether we hear the word ‘Nike’ or we see the swoosh, we know it represents excellence in athletic footwear and apparel. Nike is a long time industry leader with iconic brands and labels, Air Force 1s, Jordans, Retro Jordans, Foamposites, Air Max, Cortez to name a few. The company has been great in outpacing the competition in the past, but now Nike faces new challenges. The U.S. retail market is facing tough times, which has impacted Nike as well as others, and the competition that Nike was so good keeping at bay is now gaining market share.
Nike is a big name and it’s trading at what appears to be an attractive price, but before making an investment here are 10 Things to Know.
1. With the NBA season approaching we’ll start off with Nike being the official producer of all NBA team’s uniform. All team jerseys will sport the Nike Swoosh, except the Charlotte Hornets who will sport the Jordan brand logo on their Jersey. Nike reportedly paid $1 Billion for the 8 year deal with the NBA.
2. Nike is finding new ways to mesh fashion and tech with its Nike Connected NBA Jersey. The jerseys are outfitted with an NFC chip. Fans wearing a Connected NBA jersey can access team highlights, news and stats by tapping their phone against the area of the jersey where the NFC chip is located.
3. According to Nike, the Kyrie 3 continues to be the number one selling basketball sneaker.
4. Revenue in North America declined by 3% compared to revenue in the same quarter last year. Nike attributes this to short term promotional headwinds and headwinds within the U.S. retail market.
Source: Nike's 2018 1st Quarter Report
5. For the second quarter Nike expects growth to be in the low single digits. Again stating the struggling U.S. retail market will play a part in the slow growth.