How we source: figures on this page come from the company’s own filings (SEC 10-K, 10-Q and earnings releases, or its annual report), with the period stated next to each number. Last refreshed October 2026. Our methodology.
Nike is an American multinational corporation founded by Bill Bowerman and Phil Knight in 1964.
The core focus of the company is supplying athletes with wearable products that increase sports performance.
This includes footwear, apparel, equipment, accessories, and other athletic wear. In recent times, the company has moved into athletic leisurewear.
Key numbersChecked 6 October 2026
$3,108 millionNIKE, Inc. net income was $3,108 million in fiscal 2026, with a net income margin of 6.7%.SEC EDGAR filings
$29,525 millionIn fiscal 2026, NIKE Brand revenues were $29,525 million from footwear, $13,449 million from apparel and…SEC EDGAR filings
$7,034 millionSales of Jordan Brand products were $7,034 million in fiscal 2026, decreasing 3% on a reported basis.SEC EDGAR filings
$46.4 billionNIKE, Inc. revenues were $46.4 billion in fiscal 2026 compared to $46.3 billion in fiscal 2025.SEC EDGAR filings
In one lineThe core focus of the company is supplying athletes with wearable products that increase sports performance.
FourWeekMBABusiness EngineerAt a glance
The company has secured 31% of the global athletic footwear market alone.
In fiscal 2026, NIKE Brand revenues were $29,525 million from footwear, $13,449 million from apparel and $2,199 million from equipment; Converse revenues were $1,174 million.
NIKE, Inc. revenues were $46.4 billion in fiscal 2026 compared to $46.3 billion in fiscal 2025.
The Chinese consumer market has shown renewed interest in Nike products and for fiscal 2026, factories in China manufactured approximately 16% of total NIKE Brand footwear.
Layout refreshed 6 October 2026. The article text below is unchanged.
Why it mattersFrom the article
With a focus on quality, innovation, sustainability, and customer experience, Nike has maintained leader status in what is a very competitive market.
Low-quality counterfeit products have the potential to affect revenue generation and brand image.
Escalating tensions between the United States and China pose a serious threat to Nike.
The famous Nike “swoosh” is instantly recognizable and the Nike brand alone was recently valued at approximately $30 billion.
Research and development
Allowing Nike to continually deliver innovative products and significantly lower manufacturing costs per unit.
Market leader in sport’s shoes and apparel
With a focus on quality, innovation, sustainability, and customer experience, Nike has maintained leader status in what is a very competitive market.
The company has secured 31% of the global athletic footwear market alone.
Marketing capability
In the past two years, Nike has spent a combined total of $7.2 billion on marketing.
The company is also skilled at delivering successful marketing campaigns on a range of platforms to increase market share.
Nike in charts
Nike at a glance: $46.4B of revenue and $3.1B of net income in fiscal 2026. Source: Nike Form 10-K for fiscal 2026 (year to 31 May 2026, SEC EDGAR); Nike Q1 fiscal 2027 earnings release (Form 8-K, SEC EDGAR). YoY calculated. Analysis by The Business Engineer.North America +5%; Greater China −11%, Converse −31%. Source: Nike Form 10-K for fiscal 2026 (year to 31 May 2026, SEC EDGAR). Analysis by The Business Engineer.
Weaknesses
Labor controversy
Every Nike manufacturing facility is outside of the United States, with China, Vietnam, Thailand, and Indonesia accounting for all production.
The company has been criticized for poor working conditions with issues centered on forced labor, child labor, and low wages.
A lack of diversification
For fiscal 2026, NIKE Brand and Converse sales in the United States accounted for approximately 44% of total revenues, arguably leaving Nike dependent on this major source of income.
Updated 6 October 2026: we refreshed 10 figures on this page, now taken from SEC EDGAR filings. Anything we could not check against a current source keeps its original year, so you can see how old it is.
Latest figures · checked 6 October 2026
NIKE, Inc. net income was $3,108 million in fiscal 2026, with a net income margin of 6.7%. SEC EDGAR filings
In fiscal 2026, NIKE Brand revenues were $29,525 million from footwear, $13,449 million from apparel and $2,199 million from equipment; Converse revenues were $1,174 million. SEC EDGAR filings
Sales of Jordan Brand products were $7,034 million in fiscal 2026, decreasing 3% on a reported basis. SEC EDGAR filings
As of 31 May 2026, Nike had approximately 73,000 employees worldwide, including retail and part-time employees. SEC EDGAR filings
Nike’s NIKE Direct and Converse direct-to-consumer businesses operated 347 retail stores in the United States and 641 outside the United States, per the fiscal 2026 10-K. SEC EDGAR filings
NIKE, Inc. revenues were $46.4 billion in fiscal 2026 compared to $46.3 billion in fiscal 2025. SEC EDGAR filings
NIKE, Inc. first-quarter revenues were $11.2 billion, down 4 percent on a reported basis. SEC EDGAR filings
Culture
Nike has had well-documented problems with organizational culture in the past.
The company has faced various legal challenges over employee discrimination, with one former employee claiming he was treated unfairly as a result of his Croatian heritage.
Nike was also taken to court over its toxic culture for women and violation of the Equal Pay Act.
FourWeekMBABusiness EngineerTimeline, as stated in the article
1964
Nike is an American multinational corporation founded by Bill Bowerman and Phil Knight in 1964.
2026
NIKE, Inc. net income was $3,108 million in fiscal 2026, with a net income margin of 6.7%.
2026
NIKE, Inc. revenues were $46.4 billion in fiscal 2026 compared to $46.3 billion in fiscal 2025.
2026
The Chinese consumer market has shown renewed interest in Nike products and for fiscal 2026, factories in China manufactured approximately 16% of total NIKE Brand footwear.
Opportunities
Emerging markets
Nike has an opportunity to strengthen its global presence in emerging economies such as India, China, and Brazil.
Product development
Although the company prides itself on innovative athletic products, many consumers wear Nike products as a fashion statement.
This presents an opportunity for growth, provided that a broader focus does not dilute brand image.
Supply chain integration
To some extent, Nike relies on a host of independent manufacturers.
Acquiring these manufacturers could lead to process efficiencies, streamlined distribution, and economies of scale.
Threats
Counterfeit products
Given that Nike is such a globally dominant brand, imitation in the form of counterfeiting is a constant threat.
Low-quality counterfeit products have the potential to affect revenue generation and brand image.
Patent disputes
In such a competitive market, it is almost inevitable that there will be conflict over certain patented products.
One such example is the public battle between Nike and Adidas over patents concerning the design of a line of shoes.
Trade tension
Escalating tensions between the United States and China pose a serious threat to Nike.
The Chinese consumer market has shown renewed interest in Nike products and for fiscal 2026, factories in China manufactured approximately 16% of total NIKE Brand footwear.
The Knight family owns Nike. Indeed, the top individual shareholder is Travis A. Knight, son of Philip Knight, co-founder of Nike, with a 7% stake in Class A stocks and a 2.4% stake in Class B stocks. On the other hand, the Knight family also controls the company tightly through their Trusts and an LLC called Swoosh (the Nike logo’s shape is a “swoosh”). Through individual shares, Swoosh LLC, and Travis Knight’s irrevocable trust, the Knight family controls over 97% of Class A and 21% of Class B stocks.
Nike follows a wholesale strategy combined with a very strong direct distributionstrategy. The company makes money primarily from footwear, which represented over 64% of its total revenues in 2023, followed by apparel (27%). The most successful Nike brand is the Jordan Brand, which in 2023 generated $6.6 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 leverages both a wholesale and direct distributionstrategy. Indeed, while still in 2023, 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 generated most of its revenue from footwear. Indeed, in 2023, Nike generated over $33.13 billion in revenue from footwear, $13.84 billion in apparel, $1.73 billion in equipment, and $2.43 billion from the Converse brand.
Nike generated $51.22 billion in revenue in 2023 and over $5 billion in net profits, compared to over $46.71 billion in revenue and $6.05 billion in profits for 2022.
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.”
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 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 distributionstrategy, 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.
Michale Jordan is a billionaire but doesn’t own the Jordan brand, which is part of Nike. Yet, he gets 5% royalties on the sales of Jordan. For instance, as of May 31, 2023, Nike had endorsement contract obligations of $7.6 billion, of which over $330 million were to be paid out to Michael Jordan as royalties on the sales of Jordan in 2023 (the company made over 6$ billion in sales in that year). We estimated that between 2018-2023 alone, Nike paid (or is paying) Michael Jordan over one billion dollars in royalties for Jordan’s brand sales.
Samsung was founded in South Korea in 1938 by Lee Byung-Chul. Originally a trading company, it took Samsung 22 years to become the fully-fledged electronics company that most people recognize today. Indeed, the company is a leader in technological innovation through telecommunications, electronics, and home appliances.
Costco is a large American multinational corporation with a focus on low-cost, membership-only retail warehouse clubs. Costco is the 4th largest retail operator in the world, operating 785 warehouses in 10 different countries. Indeed, it has enjoyed rapid success growing from zero to $3 billion in sales within six years.
From humble beginnings just over 50 years ago, Walmart has grown to become the world’s largest retail company. A single small discount store in Arkansas has now expanded to over 11,000 stores in 28 countries. Some reports suggest that the company now makes $1.8 million of profit every hour.
Headquartered in San Francisco, California, Uber started as a peer-to-peer ridesharing platform. In more recent times, the company has moved into food delivery, rental cars, and bike-sharing. In one form or another, Uber now has a presence in over 900 cities worldwide.
It would be hard to argue the case for a more recognizable entertainment brand than Disney. Disney is of course synonymous with Walt Disney, but it was Walt and his brother Roy who started the company in 1923 in Burbank, California. Disney content is now broadcast on over 100 channels in 34 different languages across the globe.
Coca-Cola is the market leader of the soft drink industry. It is also the most widely recognized brand, with a Business Insider study revealing that a staggering 94% of the world population recognizes the red and white logo. However, Coca-Cola faces significant challenges with increasingly health-conscious consumers and less access to water resources.
Founded in 1903 by Henry Ford and is the fifth-largest family-owned company in the world. Ford is a globally recognized brand in the automotive industry for a couple of reasons. First, Henry Ford is well-known as the inventor of the production line and thus the modern automobile industry. Today, Ford has also maintained relevance as the seventh-largest car manufacturer worldwide, selling a range of passenger cars, trucks, and vans.
Tesco was founded in 1919 by Jack Cohen, as a small group of market stalls. After rapid expansion in the following years, the company became the largest retailer in the UK and is now the second-largest in the world. To put their dominance into perspective, consider that Tesco serves around 66 shoppers per second across 7000 retails stores, delivering approximately $180,000 worth of sales every minute.
Nestlé is a large multinational food and beverage manufacturer with more than 2000 brands spread across 197 countries. Some of Nestlé’s well-known brands include Nescafe, Kit-Kat, Purina, Aero, Butterfinger, Maggi, and Haagen-Dazs. Originally a producer of infant food in 1867, it is now considered to be the world’s largest food manufacturer.
Amazon is among the most diversified business model in the tech industry. The company is well-positioned to dominate e-commerce further. And while its online stores have tight profit margins, Amazon still unlocks cash for growth, while consolidating its dominance in the cloud and grabbing new opportunities like voice.
Facebook, with its products, with its strong appeal, and consumer brand has a solid business model, threatened in the last years by privacy concerns, which open up the way to potential regulation to break up the company. If that will not happen, Facebook will have the chance to expand to define other markets like VR.
Starbucks is a global consumer brand with direct distribution, recognized brands, and products that make it a viable business. Its reliance on the Americas as a primary operating segment makes it a weakness. At the same time, Starbucks faces risks related to coffee beans price volatility. Yet the company still has global expansion opportunities.
Among the most recognized car manufacturers, Tesla is valued more than the combined market capitalization of GM and Ford. While the company’s direct distribution is a strength, its lack of financial viability is a weakness. Competition is a future threat. However, if Tesla defines a new market for car manufacturing its potential growth will be massive.
Netflix is among the most popular streaming platforms, with a subscription-based business model. The brand, platform, and content are strengths. The volatility of content licensing and production are weaknesses. The streaming market is a potential blue ocean. Inability to attract and retain premium members, and its fixed long-term costs are threats to its business model.
Apple can leverage a strong consumer brand and set of successful products as a strength. Yet the company is still too reliant on the iPhone as a primary revenue stream. Though Apple is working to open up new markets as an opportunity, it has to make sure to sustain its stores’ sales.
Google’s strength is its strong consumer brand. The company is grabbing new opportunities by opening up industries like voice search and consolidating in industries like the cloud. As a weakness, its revenues primarily come from advertising. A primary threat is the quick change of search and potential intervention by regulators.
Gennaro Cuofano is a CRO and tech executive who has worked in AI since late 2015, starting with bringing NLP, natural-language generation, voice and chatbot products to the marketing industry. His background is in law and finance: he holds a Master's degree in Law and an International MBA with an emphasis on corporate finance (LUISS Business School and the University of San Diego, 2012), and worked as a financial analyst at a real-estate investment firm in San Diego and as an assistant controller. His work focuses on business model strategy, business engineering and, more broadly, structural analysis: how companies make money, read from their own filings. He created FourWeekMBA and leads research there and at The Business Engineer, his newsletter on AI and business strategy, with over 95,000 subscribers and more than 1,000 published analyses. His writing has also appeared on Entrepreneur (for example, How to Digitize a Family Business in Europe) and HackerNoon. Find him on LinkedIn and Substack. See how we source.
