Nike

11 Pages 2711 Words

Nike is in the footwear, apparel, equipment, and accessory products industry. All of Nike’s chief products are athletically inspired. Its footwear consists of Men’s, Women’s, and Children’s shoes; further subdivided into the following categories: Running, Basketball, and Cross-raining. Nike’s shoes also address the market for outdoor activities. Its thorough response to these activities has been the introduction of the following shoe designs: tennis, golf, soccer, baseball, football, bicycling, volleyball, wrestling, cheerleading, aquatic activities, street/roller/ice hokey, and hiking. Nike is further addressing new niche markets every year. The principal products used in Nike’s footwear products are natural and synthetic rubber, plastic compounds, foam cushioning materials, nylon, leather, canvas, and polyurethane films used to make AIR-SOLE cushioning components. The main components used in making Nike’s apparel products are natural and synthetic fabrics and threads, plastic and metal hardware, and specialized performance fabrics designed to repel rain, retain heat, or efficiently transport body moisture.
As of last year, Nike’s sales revenue was approximately $10.697 billion. The mix of Nike’s product sales varies considerably due to changes in seasonal and geographic demand for particular types of footwear, equipment and apparel. During fiscal 2003, Nike’s sales in the U.S. accounted for roughly 49 percent of total revenues as opposed to 51 percent in international markets. Total assets in 2003 were approximately $6.714 billion. This was comprised of cash and equivalents of $634 million, inventories of $1.515 billion, and working capital of $2.665 billion. As of May 31, 2003, Nike employed approximately 23,300 people. It is interesting to note that there has never been a material interruption of operations due to labor disagreements.
Nike’s domestic distribution centers for footwear are loca...