Nike Revenue

Nike generated over $46.7 billion in revenue in 2022, compared to over $44.5 billion in 2021. The company primarily makes money from footwear, and it comprises a bunch of brands from Jordan to Converse, which are quite popular.

Nike is one of the most valuable brands in the world.

The company follows a mix of direct and wholesale distribution strategies where its shoes are sold at selected partners’ shops at the wholesale level.

While the company also has a direct store strategy, where it’s able to keep a tight control over customer experience, and enhance the perception of the brand to its consumers.

Nike leverages both a wholesale and direct distribution strategy. Indeed, while still in 2022, most sales come from wholesale distribution, in reality, since 2020, Nike has been ramping up its direct distribution through its NIKE stores and e-commerce platform (SNKRS).

Nike’s main revenue come from footwear, followed by apparel, and equipment.

Nike generated most of its revenue from footwear. Indeed, in 2022, Nike generated over $29 billion in revenue from footwear, over $13.5 billion in apparel, $2.35 billion in equipment, and over $1.6 billion from the Converse brand.

The company owns three main brands: Nile, Jordan, and Converse.

Jordan alone is a brand which in 2022, generated over $5 billion in revenue.

Jordan follows a demand generation business model, where its iconic brand works as a propeller for the sale of its footwear and apparel, which in 2022 generated more than $5 billion in revenue for Nike, or more than 10% of its total revenue.

Nike has been an increasingly popular brand over the years. Its popularity has been spurred by the ability of the company to turn its shoes into iconic models, which target both athletes and fashion consumers.

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Nike Business Model

Nike follows a wholesale strategy combined with a very strong direct distribution. The company makes money primarily from footwear. As of 2022, over 62% of revenues came from footwear and 29% from apparel. The most successful Nike brand is the Jordan Brand, which in 2022 generated $5.2 billion in revenue. Nike is the master of demand creation and generation through its influencer campaigns, where athletes become an inspiration for everyday people.

Nike Strategy

Nike Revenue

Nike Financials

Nike generated over $47.7 billion in revenue and over $6 billion in net profits in 2022, compared to over $44.5 billion in revenue and almost $5.8 billion in 2021.

Nike Mission Statement

Nike’s vision is “To bring inspiration and innovation to every athlete in the world.” At the same time, its mission statement is to “do everything possible to expand human potential. We do that by creating groundbreaking sports innovations, by making our products more sustainably, by building a creative and diverse global team, and by making a positive impact in communities where we live and work.”

Nike SWOT Analysis

Nike Competitors

Jordan Business Model

Jordan follows a demand generation business model, where its iconic brand works as a propeller for the sale of its footwear and apparel, that in 2022 generated more than $5 billion in revenue for Nike or more than 10% of its total revenue.

Converse Business Model

Converse is an independent brand part of Nike’s family of brands. Indeed, Converse generated $2.35 billion in revenue in 2022. And like Nike, it follows an heave Wholesale distribution strategy, where most of its sales are made, through footwear. However, Converse follows also a direct distribution approach where it sells directly via its monobrand stores.

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Gennaro Cuofano