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Transcript of NIKE, Inc. Memo #2
Memorandum #2
Collin J. Myers BUS-458
Spring 2013
Collin J. Myers
II
NIKE Memorandum #2
NIKE, Inc. is the worldʼs leading designer, marketer and distributer of athletic
footwear, apparel, equipment and accessories for a wide variety of sports and fitness
activities.1NIKE competes in a large number of global industries including: athletic
footwear, athletic apparel, and athletic accessories.2 NIKE also competes in the e-
commerce industry and retail industry.
The global economic recession resulted in a significant slow-down in international
trade and a sharp rise in protectionist views around the world.3 These trends are
affecting many global manufacturing and service sectors, including the footwear and
apparel industries.4 Companies in NIKEʼs industry are facing trade challenges in many
different regions. NIKE is working together with competitors to address trade issues to
reduce the impact to the industry, while observing applicable competition laws.5 These
efforts could result in increases in Selling, General and Administrative expenses
(SG&A), which would affect NIKEʼs sales or profitability and the imported footwear and
apparel industry as a whole.6
Over the past decade, NIKE and its competitors have faced numerous inflection
points. Due to the high volume of International sales NIKE and its competitors are
exposed to foreign trade inflection points. At the request of certain domestic footwear
industry participants, both Brazil and Argentina have initiated independent anti-dumping
1 http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=NKE 2 http://www.nikeresponsibility.com/report/content/chapter/business-overview 3 NIKE FY2012 Annual Report, “Mark Parker Letter” 4 NIKE FY2012 Annual Report, “Mark Parker Letter” 5 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 6 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf
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investigations against footwear made in China.7 Over the last two years, NIKE has been
working with a broad coalition of other companies in the industry to challenge these
cases on the basis that the athletic footwear being imported from China (I) should not be
within the scope of the investigation, and (ii) does not meet the legal requirements of
injury and price in an anti-dumping investigation.8 In 2010 Argentina ruled in favor of the
industry and chose to not pursue these anti-dumping investigations.9 In the case of
Brazil, the administering authorities agreed to impose an anti-dumping duty against
nearly all footwear from China.10In July 2012, the Brazilian Government found no
circumvention was taking place with footwear from China and closed the matter.11
Many products, including footwear, apparel and equipment, that NIKE and others
in the industry import into Argentina and Brazil are subject to the WTO non-automatic
licensing requirements, which means that it may take up to 60 days for those products
to clear customs and enter into those jurisdictions.12 This is a strategic inflection point
for the industry because many companies have manufacturing in South America. Asia
represents the highest concentration of manufacturing for companies in this industry but
if shipments are delayed from South America and this problem is not fixed or accounted
for, it puts the company affected in a position of competitive disadvantage. NIKE
believes this will impact all brands in the footwear industry.13
7 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 9 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 10http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 11 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 12 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 13 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf
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NIKE focuses its products in seven key categories: Running, Basketball, Football
(Soccer), Menʼs Training, Womenʼs Training, NIKE Sportswear and Action Sports.14
NIKE also markets products designed for kids, as well as for other athletic and
recreational uses such as baseball, cricket, golf, lacrosse, outdoor activities, tennis,
volleyball, walking and wrestling [Fig 6.].15 NIKE sells products through its NIKE Brand
and Affiliate Brands (Converse Inc., Hurley International LLC, Jordan Brand and Nike
Golf).16 Operating segments for the NIKE Brand are: North America, Western Europe,
Central & Eastern Europe, Greater China, Japan, and Emerging Markets.17
NIKE Brand footwear continues to be the cornerstone of revenues, alone
generating $13.4 billion, representing 55% of total revenues [Fig. 1].18 In fiscal 2012,
NIKE revenues were increased across all operating segments [Fig. 2].19 North America
contributed approximately 7 percentage points ($8.8B) [Fig. 3]20, while the Emerging
Markets and Greater China geographies contributed 4 ($3.4B) and 2 ($2.5B)
percentage points to the NIKE Brand revenue growth [Fig. 4 & 5].21 Nike looks to sustain
their North American position by focusing on brand, distribution and product strength. In
fiscal 2012, sales in the United States including U.S. sales of Other Businesses
accounted for approximately 42% of total revenues, compared to 43% in fiscal 2011 and
42% in fiscal 2010.22
14 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 15 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 16 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 17 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 18http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 19 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 20 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 21 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 22 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf
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Nike looks to continue and refine growth in Chinese markets. China offers Nike a
$2.5 billion geography with which they already hold a strong customer base and
reputation.23 Nike seeks to continue growth in the Emerging Markets. In fact, 2013 Q2
was the first $1B revenue quarter for Nikes Emerging Market businesses.24 In fiscal
2012, non-U.S. sales (including non-U.S. sales of Other Businesses) accounted for 58%
of total revenues, compared to 57% in fiscal 2011 and 58% in fiscal 2010.25
The athletic footwear, apparel, and equipment industry is keenly competitive in
the United States and on a worldwide basis. NIKE competes internationally with a vast
number of athletic and leisure shoe companies, athletic and leisure apparel companies,
sports equipment companies, and large companies having diversified lines of athletic
and leisure shoes, apparel, and equipment. The intense competition stems from the
rapid changes in technology and consumer preference towards the athletic and leisure
footwear, apparel, and equipment markets.26 Characteristics that constitute success in
this industry are: performance and reliability of products (shoes, apparel, and
equipment), new product development, price, product identity through marketing and
promotion, and customer support and service.27 To maintain brand image NIKE and its
competitors contract with prominent and influential athletes, coaches, teams, colleges
and sports leagues to endorse and use their products.28
NIKEʼs major competitors amongst many others are: Adidas and Puma. Annual
footwear sales have become the cornerstone of revenues amongst NIKE and its 23 NIKE FY 2013 Q2 Earnings Summary 24 NIKE FY 2013 Q2 Earnings Summary 25 ttp://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 26 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 27 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf 28 http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf
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competitors29 [Figure 6]30. New Balance Shoe Inc. is one of the largest, most recognized
brands and known for its special widths not available by other brands, but its footwear
sales globally are under the $1.0 billion mark.31 Other minor athletic footwear
competitors (2010 sales) include Fila (~$300-400 million), K-Swiss ($340 million),
Columbia Sportswear ($217 million), Amer Sports ($210 million), and Under Armour
($85 million).32 The athletic footwear market is highly competitive and fragmented with a
few major players and an endless array of smaller players, including designers,
marketers, manufacturers and retailers.33 Globally, several companies crack the $1.0
billion dollar barrier in footwear sales but only Nike, Inc. and Adidas AG bring in more
than $5.0 billion.34
Important environmental segments in the athletic footwear industry include:
demographics, political/legal, technological, and global. Demographics represent an
opportunity to this industry in the long run. The U.S. Census Bureau projects that the
worldʼs population will be 9 billion by 2040.35 As a result, companies in this industry will
have an entire new customer base without losing sales from a decline in the population
of baby boomers. This is because athletic footwear companies primarily market their
products to customers age 40 and under. The Athletic footwear market has witnessed a
strong demand for female athletic shoes, especially from the school/college going teens
and young mothers. Teens primarily demand for training and sports-inspired casual
29 http://wulibraries.typepad.com/files/footwear.pdf 30 http://wulibraries.typepad.com/files/footwear.pdf 31 http://wulibraries.typepad.com/files/footwear.pdf 32 http://wulibraries.typepad.com/files/footwear.pdf 33 http://wulibraries.typepad.com/files/footwear.pdf 34 http://wulibraries.typepad.com/files/footwear.pdf 35 U.S. Census Bureau
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shoes, while mothers have showcased preference for toning and running/jogging
shoes.36
Innovation and efficiency shape the athletic footwear industry. To achieve high
levels of both, companies must stay on top of technological change in the industry.37
This includes technological change in three areas: manufacturing, distribution, and
product design. Due to the fast operating speed of the industry, technologic change
must be embraced technology offers NIKE and its competitorʼs opportunity to grow
profits and expand market share. If this segment is ignored by companies then
technology will become a threat and the chances of falling behind competitors
increases.
The global segment represents the largest area of opportunity for athletic
footwear companies. In the global athletic footwear industry, Asia Pacific and the Rest
of World regions are forecast to have the highest growth during the next five years
(2012–2017).38 Rising income levels in the lower-tier cities of the emerging Asian
countries are among the factors likely to boost the athletic footwear market.39
The 2012 London Olympic Games is one of the largest televised events in the
world. The games provide a showcase for new fashions and advances in technology
which companies like NIKE and Adidas hope will drive sales across all athletic business
segments. Nike is currently the market leader in the UK with an 18% share of the ultra-
36 http://wulibraries.typepad.com/files/footwear.pdf 37 http://wulibraries.typepad.com/files/footwear.pdf 38 http://sectoroverview.wordpress.com/2012/11/02/global-athletic-footwear-retail-industry/ 39 http://sectoroverview.wordpress.com/2012/11/02/global-athletic-footwear-retail-industry/
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competitive £4.3bn sportswear market.40 Adidas is in second place with a 15% share.41
Adidas has been working around the clock to win the UKʼs sportswear market, setting a
goal of overtaking NIKE by 2015 in the UK.42 In order to win, Adidas brought out the big
gun, Stella MacCartney.43 After eight years of collaboration, she has been named
Creative Director and she has designed Team GB performance kit, podium suit & village
wear but not the Olympic ceremony suits.44 Adidas spent £100 million to ensure they
are the unique official sportswear partner of London 2012 and to be the only brand
which has the right to produce goods with the Olympic logo.45 Adidasʼs move of
ensuring Olympic sponsorship is a tactical strategy. Adidas hopes that their presence in
the 2012 Olympic Games will increase future market share in the UK. Nike responded to
this by sponsoring some of Americaʼs top athletes while setting up huge marketing
displays throughout numerous stores across London advertising their new ʻFly Knitʻ
Technology.46
On February 13th, 2013 Adidas launched their new running shoe called BOOST,
part of a new segment by Adidas called Energy Running47. The BOOST features
midsole cushioning technology that Adidas bills as "revolutionary" and "game-
changing”.48 The cushioning offers the runner a return in energy promoting a faster
40 http://www.telegraph.co.uk/finance/london-olympics-business/8545104/London-2012-Olympics-Adidas-aims-to-beat-Nike-into-second-place-at-Games.html 41 http://www.telegraph.co.uk/finance/london-olympics-business/8545104/London-2012-Olympics-Adidas-aims-to-beat-Nike-into-second-place-at-Games.html 42 http://www.trendflyholic.com/2012/09/26/london-olympic-2012-adidas-or-nike/ 43 http://www.trendflyholic.com/2012/09/26/london-olympic-2012-adidas-or-nike/ 44 http://www.trendflyholic.com/2012/09/26/london-olympic-2012-adidas-or-nike/ 45 http://www.trendflyholic.com/2012/09/26/london-olympic-2012-adidas-or-nike/ 46 http://www.trendflyholic.com/2012/09/26/london-olympic-2012-adidas-or-nike/ 47 http://www.adidas-group.com/en/pressroom/archive/2013/13FEB2013.aspx 48 http://www.adidas-group.com/en/pressroom/archive/2013/13FEB2013.aspx
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more cushioned environment.49The new segment was ironically designed to ʻboostʼ
Adidasʼs market position. Adidas was sixth in 2012 in domestic retail sales of running
footwear, ranking far behind global leader Nike, which commanded 54% of revenue in
the US market.50 Mikal Peveto, the director of running at Adidas America commented by
saying, “With running, we're so under-penetrated here, weʼre No. 2 in the world in
running -- we're not No. 2 in the United States. The U.S. makes up a big part of the
global business. If we win here, we make a big push towards No. 1 globally.”51
The success of NIKEʼs Free and Lunar Technologies, now each $1 billion businesses,
has left Adidas trying to catch up. The action displayed by Adidas represents a strategic
move, in an attempt to capture more market share in the US market. The reaction by
Adidas is due to their awareness of the running market and the potential they have to
compete in US markets. Peveto commented on the potential impact of BOOST by
saying, “This is our future. This is the beginning of the first chapter in a new book."52
One of NIKEʼs major competitive strengths is their Brand recognition. The NIKE
Swoosh has become one of the most recognized brand logos in the world. The Swoosh
represents innovation, athleticism, and champions. This is due to NIKEʼs rich history in
sports and athletic wear. NIKE has done this by only sponsoring the top athletes in the
world to represent the company (LeBron James, Michael Jordan, Tiger Woods and Rory
Mcllroy). NIKEʼs strengths also lie in their R&D department. NIKE has built an empire
based on innovation which would not exist without R&D. The emphasis NIKE places on
49 http://www.adidas-group.com/en/pressroom/archive/2013/13FEB2013.aspx 50 http://www.usatoday.com/story/sports/2013/02/13/adidas-nike-running-shoes-footwear-boost/1914767/ 51 http://www.usatoday.com/story/sports/2013/02/13/adidas-nike-running-shoes-footwear-boost/1914767/ 52 http://www.usatoday.com/story/sports/2013/02/13/adidas-nike-running-shoes-footwear-boost/1914767/
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R&D can be seen through technology such as: Lunar Technology, Fly Knit Technology,
NIKE Free and NIKE Id. An increase in research has allowed NIKE to innovate more
than just its products. R&D also encompasses market research which is vital for NIKEʼs
strategic and tactical decisions. Market research helps NIKE determine key growth
areas that are difficult even for the trained eye to see.
NIKEʼs weaknesses are a product of their size. Due to the amount of global
business NIKE is involved in, dependency on overseas manufacturing is high.53 Trade
regulations and currency fluctuations can cause major harm to NIKE. The fast pace of
the industry together with their dependency weakness increases NIKEʼs risk to external
factors that they cannot control. Another weakness of NIKEʼs relates to price. NIKE
athletic footwear is priced at a premium compared to lower prices offered by Adidas and
the rest of the industry.54 A drop in consumer confidence could easily drive NIKEʼs sales
down which, in turn, would affect their stock performance. If innovation in footwear
design slows down and NIKE cannot differentiate, then at their current pricing model
NIKE will suffer.
NIKEʼs business level strategy is to achieve long-term revenue growth by
creating innovative “must have” products (NIKE Fly knit Technology), building deep
personal consumer connections with their brands, and delivering compelling consumer
experiences at retail and online (DTC Businesses).55 Innovation at NIKE is about
leveraging new ideas, expanding into new spaces, driving through new channels and
53 http://www.slideshare.net/divya-mishra/nike-competitive-advantages 54 http://www.slideshare.net/divya-mishra/nike-competitive-advantages 55 NIKE FY 2013 Q2 Earnings Summary
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divesting to invest.56 Nike strives to innovate for three main purposes: to serve the
athlete, to grow the company, and to inspire the world.57 As a result, NIKE has created
what they call their Category Offense to ensure customer demand is met.58 NIKEʼs
category teams live the lives of the athletes in each sport of NIKEs portfolio, mining for
insights that help NIKE innovate new ways to improve performance and experience.59
NIKE has also made a significant investment into the development of their Direct to
Consumer Businessʼ (DTC), growing 23% in fiscal year 2012 alone.60 DTC Businessʼ
represent the stores and websites NIKE operates which is part of their Digital Services
pillar of sustainability.61
An increase in the popularity of major sporting events represents an opportunity
for NIKEʼs business level strategy. Sponsoring major events like the Olympics or World
Cup is one of the best ways to communicate with customers. This offers NIKE
opportunities to sell unique products in an environment when consumers are willing to
spend a little more than usual. It also offers NIKE a high level of exposure to numerous
global markets through merchandising and advertisement.
NIKEʼs business level strategy also confronts NIKE with many threats. NIKEʼs
success is dependent upon the amount of discretionary income consumers have to
spend on their products.62 In the event of another global recession, consumers may not
be willing to pay for premium athletic footwear and apparel. Luckily, innovation currently
56 http://www.nikeresponsibility.com/report/content/chapter/business-overview 57 http://www.nikeresponsibility.com/report/content/chapter/business-overview 58 http://www.nikeresponsibility.com/report/content/chapter/business-overview 59 http://www.nikeresponsibility.com/report/content/chapter/business-overview 60 NIKE FY2012 Annual Report, “Mark Parker Letter” 61 http://www.nikeresponsibility.com/report/content/chapter/business-overview 62 http://www.slideshare.net/divya-mishra/nike-competitive-advantages
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drives the industry instead of just price. If NIKE continues to be the leader of innovation
then their pricing concerns will not have a negative effect on sales.
Due to the large scale of Adidas and NIKE, these firms are able to control their
costs efficiently to retain performance advantage over the threat of new entrants in the
industry.63 From a storefront standpoint, the threat of new entrants into the industry is
quite low, due to the high costs associated with doing so. An area where new entrants
may have some room to gain market share would be the e-commerce industry.64
Shopping online has become the new future of retail because of the decrease in prices
associated with e-commerce. It is much cheaper to launch an online store than it is to
open a location based retail model.
Consumer substitutes for athletic footwear are low because there are few
alternatives. Athletic footwear serves a large niche market due to the performance
specification of the product.65 If you play basketball, then you will need basketball shoes
and if you play football, then you will need football cleats. The chances that consumers
will switch to sandals, boots, or bare feet for their athletic activities are very low.
There are many suppliers in the athletic footwear industry with little differentiation
among the suppliers, which reduces the suppliersʼ bargaining power.66 Leather Rubber
and cotton are all commodities available abundantly in the market.67 Companies such
as NIKE and Adidas have a strong advantage and power over their suppliers.
63 http://www.slideshare.net/divya-mishra/nike-competitive-advantages 64 http://www.slideshare.net/divya-mishra/nike-competitive-advantages 65 http://www.slideshare.net/divya-mishra/nike-competitive-advantages 66 http://www.slideshare.net/divya-mishra/nike-competitive-advantages 67 http://www.slideshare.net/divya-mishra/nike-competitive-advantages
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Companies in the industry are able to switch between suppliers quickly and cheaply,
due to the globalized networks of resources like cheap labor.68
Bargaining power of buyers in this industry affects the strategies of companies in
the industry. There are a large number of buyers relative to the number of firms in this
industry.69 As a result, companies must continue to offer attractive differentiated
products to ensure market share and increase sales. An example would be NIKEʼs
ʻNikeidʼ segment. This allows consumers to customize any number of NIKE products
with their name and in their favorite colors.
The rivalry amongst firms is high but mostly concentrated at the top. NIKE and
Adidas together make up nearly half of the total global athletic footwear industry [Figure
7].70 NIKE and Adidas compete heavily when it comes to signing top athletes in different
sports. Professional endorsements offered by NIKE and Adidas are on average over $1
million annually.71 Adidas recently tried to sign Rory Mcllroy the number one golfer in the
world for $10 million annually but was crushed by NIKE when they offered him $20
million.72 League contracts also play a vital role in rivalry. Adidas has the sponsorship
rights to the NBA while NIKE has the sponsorship rights to the NFL. The rivalry amongst
firms in this industry is closely related to the competition between Pepsi and Coke in the
soft drink industry.
68 http://www.slideshare.net/divya-mishra/nike-competitive-advantages 69 http://www.slideshare.net/divya-mishra/nike-competitive-advantages 70 http://blogs.ubc.ca/erictoh/2012/10/14/do-mergers-work/ 71 http://www.forbes.com/sites/kurtbadenhausen/2013/01/14/rory-mciroy-joins-highest-paid-athletes-after-blockbuster-nike-deal/ 72 http://www.forbes.com/sites/kurtbadenhausen/2013/01/14/rory-mciroy-joins-highest-paid-athletes-after-blockbuster-nike-deal/
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The environment of the athletic footwear industry will remain similar in the next
five years. The market is already heavily saturated with a few strong companies, like
NIKE and Adidas, while the rest of the industry consists of smaller firms just looking for
a piece of the pie. NIKE has a market value of almost $50 billion while Adidas holds a
market value of $12 billion.73 NIKE global footwear sales in 2011 accounted for 31% of
total global market share while Adidas accounted for 16% [Figure 7].74 The only room
for growth for the larger firms is a further global expansion into the emerging markets.
Firms like NIKE and Adidas already have the distribution network and resources that
allow for success in emerging markets. The cost of doing so will only be achievable by
large firms, which explains why market position will stay with the top guns like NIKE and
Adidas.
The drivers of change in the industry are: innovation and flexibility. Innovation
relates to every segment of business operations from supply chain management to
talent acquisition. Products must to be innovative to win consumer preference in the
athletic footwear industry. Innovation will drive demand and competition in product
design all the way down to innovation in textiles. Innovating is also about being flexible.
Many of the innovations in this industry lie in the ability to enter new global markets with
flexibility. Emerging markets offer too much opportunity to companies in the athletic
retail industry to be ignored. Being flexible allows companies to adjust to new
environments and markets easier, lowering the risk of failure.
73 http://seekingalpha.com/article/613571-nike-vs-adidas-the-battle-off-the-field-for-the-gold-medal 74 http://blogs.ubc.ca/erictoh/2012/10/14/do-mergers-work/
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Financially NIKE and Adidas are very different companies. Adidasʼs current ratio
represents better short-term financing at 1.57 than NIKEʼs 3.37.75 Looking at each
companyʼs Debt-to-equity ratios it is clear which company is financed stronger. Adidas
has a very large debt-to-equity ratio at 28.44; this means that Adidas has been financing
most of its growth through debt.76 This can result in volatile earnings as a result of the
additional interest expense associated with debt financing. NIKE finances its operations
mostly through equity which can be seen in their debt-to-equity ratio of 3.01. NIKE also
outperforms Adidas in profitability. NIKE boasts a 12.60% return on assets while Adidas
is only at 6.25%.77 This is due to Adidasʼs low earnings from their assets and also due
to a low profit margin of only 3.53% while NIKE holds their margin at 9.22%.78 Although
Adidasʼs stock price ($81.72) is higher than NIKEʼs ($58.58), NIKE is a much healthier
company financially [Fig 8]. NIKE works with very little debt and has a large amount of
cash and equity to use when wishing to expand which significantly cuts down on
expenses such as interest.
75 http://finance.yahoo.com/q?s=nke&ql=1 76 http://finance.yahoo.com/q?s=ADS.DE&ql=0 77 http://finance.yahoo.com/q?s=ADS.DE&ql=0 78 http://finance.yahoo.com/q?s=ADS.DE&ql=0
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Figure 1
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Figure 2
Figure 3
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Figure 4
Figure 5
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Figure 6
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Figure 7 Figure 8
Column1 Current Price Market Cap Revenue per Share Beta P/E Profit Margin Current Ratio Debt to Equity Ratio Return on AssetsNIKE 58.58 52.48B 28.4 0.78 22.88 9.22% 3.37 3.01 12.60%
Adidas 81.72 17.10B 71.14 NA 32.49 3.53% 1.57 28.44 6.25%
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References http://www.reuters.com/finance/stocks/companyProfile?rpc=66&symbol=NKE http://www.nikeresponsibility.com/report/content/chapter/business-overview NIKE FY2012 Annual Report, “Mark Parker Letter” http://investors.nikeinc.com/files/doc_financials/AnnualReports/2012/docs/nike-2012-form-10K.pdf NIKE FY 2013 Q2 Earnings Summary Packaged Facts, The Global Footwear Market: Athletic and non-athletic shoes. (1-261) August 2009 http://wulibraries.typepad.com/files/footwear.pdf
U.S. Census Bureau Global Athletic Footwear Retail Industry 2012-2017: Trends, Profit, and Forecast Analysis http://sectoroverview.wordpress.com/2012/11/02/global-athletic-footwear-retail-industry/ James Hall, The Telegraph, London 2012 Olympics: Adidas aims to beat NIKE into second place at Games. 29 May 2011. http://www.telegraph.co.uk/finance/london-olympics-business/8545104/London-2012-Olympics-Adidas-aims-to-beat-Nike-into-second-place-at-Games.html Trendflyholic, London Olympic 2012: Adidas VS NIKE. September 26, 2012. http://www.trendflyholic.com/2012/09/26/london-olympic-2012-adidas-or-nike/ http://www.adidas-group.com/en/pressroom/archive/2013/13FEB2013.aspx Jeffery Martin. USA Today Sports, Adidas takes run at competitors with new shoe. February 13, 2013. http://www.usatoday.com/story/sports/2013/02/13/adidas-nike-running-shoes-footwear-boost/1914767/ http://www.nikeresponsibility.com/report/content/chapter/business-overview http://www.slideshare.net/divya-mishra/nike-competitive-advantages Eric Toh, Do Mergers Work? October 14, 2012 http://blogs.ubc.ca/erictoh/2012/10/14/do-mergers-work/
Kurt Badenhausen. Forbes, Rory McIlroy Joins Highest-Paid Athletes After Blockbuster NIKE Deal. January 14, 2013. http://www.forbes.com/sites/kurtbadenhausen/2013/01/14/rory-mciroy-joins-highest-paid-athletes-after-blockbuster-nike-deal/ Pierre Sookiew. Seeking Alpha, NIKE Vs. Adidas – The Battle Off The Field For The Gold Medal. May 23, 2012. http://seekingalpha.com/article/613571-nike-vs-adidas-the-battle-off-the-field-for-the-gold-medal
Collin J. Myers
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