The largest manufacturer of athletic apparel and footwear worldwide is Nike, Inc.; its revenue for the fiscal year of 2009 grew only 3% from the revenue made in 2008. In 2008, Nike’s revenue totaled over $18.6 billion, so in 2009, Nike’s only grew to $19.2 billion, with a net income falling 21% to 1.5 billion, due to the global slowdown in retail sales and consumption, which as you can see, has hit Nike hard.
The company expects to have lower revenues in the first half of 2010, however, despite all this, Nike’s 3rd Quarter 2010 (Nike’s 4th quarter ends in May), revenue was $4.6 billion, which is up from $4.4 billion in the 3rd Quarter the year before. Nike’s net income was $496 million, which is more than double the $244 million the company earned in the same period the year before. Even though Nike is still not back on its normal revenue and growth track, demand has improved in most of its segments and in country’s like Europe, the Middle East, Africa and the U.S. which accounts for Nike’s 30% of sales.
The fiscal year of 2009 challenged Nike to leverage core strengths and adapt quickly to a changing landscape. With Nike’s continued efforts with making tough decisions over the past year, they have demonstrated that they are meeting the challenges and seizing the opportunities to optimize their position as the industry leader. By Nike focusing on what they do best, like creating great product lines and connecting with consumers with great athletic stories, they will become a stronger, more valuable and more profitable company for all their shareholders. Even despite the set backs in December of 2009, where Nike felt the ill effects of the Tiger Woods scandal, they have instead decided to begin to spend less on sports sponsorships in future avoidance of similar difficulties.