Is Nike Footwear An Important Business For The Company?

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NKE: Nike logo
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The global footwear market has exploded recently, growing by almost 18% in the last 5 years. In comparison to the apparel business, Nike Inc’s footwear business seems to have grown at a higher percentage historically. Furthermore, since 2010, the proportion of revenues achieved by Nike in the footwear business has increased more than the apparel business.

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Despite being challenged by new innovations and designs from competitors like Under Armour and Adidas, Nike has managed to increase its market share in the last 5 years by almost 8%.

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In 2015, the company posted almost $19 billion in footwear sales. Sales were helped by high consumer demand and outperformance of MVPs. The Jordan line of shoes continue to be a favourite as the Kobe signatures and the Flyknit collection show significant potential in driving sales.

Notes:

1) The purpose of these analyses is to help readers focus on a few important things. We hope such lean communication sparks thinking, and encourages readers to comment / ask questions on the comments section

2) Figures mentioned are approximate values to help our readers remember the key concepts more intuitively. For precise figures, please refer to our full analysis for Nike

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