NIKE, Inc.
NIKE, Inc., together with its subsidiaries, designs, develops, markets, and sells athletic footwear, apparel, equipment, accessories, and services for men, women, and kids in North America, Europe, the Middle East, Africa, Greater China, the Asia Pacific, and Latin America. The company offers its products under the NIKE, Jordan, Converse, Jumpman, Chuck Taylor, All Star, One Star, Star Chevron, and Jack Purcell trademarks. It also provides a line of performance equipment and accessories, including bags, socks, sport balls, eyewear, timepieces, digital devices, bats, gloves, protective equipment, and other equipment for sports activities; and sports apparel, as well as sells products to wholesale customers and directly to consumers through NIKE Direct operations; distributes and licenses casual sneakers, apparel, and accessories; and markets apparel with licensed college and professional team and league logos. In addition, the company offers consumer services and experiences, including sport focused events and activations; fitness and activity apps; sport, fitness, and wellness content; and digital services and features in retail stores. It sells its products to footwear stores; sporting goods stores; athletic specialty stores; department stores; skate, tennis, and golf shops; and other wholesale accounts through NIKE-owned retail stores, independent distributors, licensees, sales representatives, and digital platforms. The company was formerly known as Blue Ribbon Sports, Inc. and changed its name to NIKE, Inc. in May 1971. NIKE, Inc. was founded in 1964 and is headquartered in Beaverton, Oregon.
What does it do?
Nike is the world's biggest sportswear brand — it makes the shoes, clothes, and gear that athletes and everyday people wear to work out, play sports, or just look good. You've seen the Swoosh logo your whole life: on basketball courts, running tracks, and high street stores worldwide. Beyond shoes, Nike owns Jordan Brand (think Michael Jordan's iconic sneakers) and Converse (the classic Chuck Taylor trainers). If someone in your city is wearing athletic footwear right now, there's a good chance it came from Nike.
Nike is one of the most recognised brands on the planet, which normally makes it a 'safe' consumer stock — but right now it's going through a rough patch that has its stock price down more than 60% from its all-time highs, making it a turnaround story investors are watching closely. The company lost $5 billion in annual revenue in a single year (from $51.4B to $46.3B), which is rare for a brand this dominant and has triggered serious questions about whether Nike's strategy went wrong. A new CEO, Elliott Hill, took over in late 2024 with a mandate to fix the business, and investors are betting on whether he can pull it off.
How does it make money?
Nike makes money by selling footwear, apparel, and equipment — footwear alone typically accounts for around 65% of total revenue. It sells through its own stores and website (called Direct-to-Consumer), and through retail partners like Foot Locker and JD Sports. Nike pulled back heavily from wholesale partners a few years ago to focus on selling directly to customers online, but that strategy backfired and hurt revenue significantly — the company is now rebuilding those retail relationships. With $46.3 billion in revenue last year and $3.2 billion in net profit (money left after all costs), Nike still earns real money, but margins are under pressure from discounting and inventory problems.
Why do investors care?
The bull case for Nike is simple: this is a once-in-a-generation brand trading at prices not seen in nearly a decade, and if the new CEO can fix execution, the stock could re-rate sharply higher. What has to go right is a successful return to wholesale partnerships, a recovery in Greater China (a huge market where Nike has lost ground to local brands like Anta and Li-Ning), and a stop to the heavy discounting that has been eating into profits. Nike also has a pipeline of new product innovation in running and performance categories that could reignite consumer excitement. The risk is that the brand has been damaged more deeply than a strategy fix can solve quickly.
Deep Dive
MemberA full investor briefing on NIKE, Inc. — history, leadership, risks, and outlook.