Why research Nike?
Getting Nike logo as a customer on your website is a prized possession for many a sales person. If you’re in supply chain or procurement tech, you should be selling to Nike. The company is always looking for new and innovative ways to streamline its operations, and it has a history of working with cutting-edge suppliers. If you have a technology that can help Nike save time or money, there’s a good chance the company will be interested.
Naturally, SDRs, BDRs and AEs in such industries for whom Nike is a target account, research the company including its quarterly or annual earnings, 10K / 10Q, press news, job listings and other information before doing the outreach.
Who should research Nike?
Nike’s scale of operations make it a good fit for many B2B products. But, you should research Nike if you are:
- a product that looks into the supply-chain AI and efficiency
- procurement intelligence
If you are an SDR for one of these products, you need insights from Nike’s strategies that show the efficiency of your product. B2Brain’s machine learning has compiled these highlights from Nike’s Annual Reports, Press Releases (and other sources) that can significantly improve your pitch.
Three insights from Nike’s quarterly earnings, Q3 2023
Here are three compelling observations from our analysis of Nike’s Q3 2023 earnings report, which was unveiled on March 21st, 2023.
Strong Performance in Asia Pacific and Latin America
Nike has reported strong revenue growth in the Asia Pacific and Latin America regions, with a 19% and 24% increase, respectively. The company has attributed this growth to the launch of new products and the increase in consumer spending. Nike has also announced plans to expand its product offerings in these regions, especially in the footwear and apparel categories.
Investment in Digital Transformation
Nike has announced significant investments in its digital transformation strategy, including enhancing its e-commerce capabilities and mobile applications. Their focus on digital innovation is expected to enable the company to better meet the evolving needs of its consumers and provide a seamless shopping experience. Industries that could benefit from Nike’s digital transformation include the e-commerce and technology sectors.
Strong Brand Momentum
Nike has continued to maintain its strong brand momentum, with a 20% increase in sales through its Nike membership program compared to the previous year. The company has also reported strong demand for its new product offerings, including the Jordan brand and women’s athletic wear. Nike’s brand strength is expected to continue to drive its growth and success in the highly competitive sports and fashion industries.
Three insights from Nike’s quarterly earnings, Q2 2023
Here are three compelling observations from our analysis of Nike’s Q2 2023 earnings report, which was unveiled on December 20th, 2022.
Strong Revenue Growth Despite Supply Chain Challenges
Nike has surpassed expectations with its Q2 FY23 earnings report, boasting an impressive 22% year-over-year revenue growth of $12.2 billion, despite ongoing supply chain challenges. The brand’s success in navigating the pandemic is evident through its digital sales, which have surged by 26%. This performance not only showcases Nike’s resilience but is also expected to have a positive impact on industries such as supply chain and retail.
Robust Performance in the North American Market
Nike’s largest market, North America, has exceeded expectations with a remarkable 22% increase in revenue compared to the previous year. The company credits its strong performance to the successful launch of new products and an increase in consumer spending. In response to this growth, Nike has announced its plans to expand its product offerings in North America, with a focus on the lucrative apparel and women’s categories.
Promising Growth Opportunities in Emerging Markets
Nike’s revenue growth in emerging markets, such as Greater China and the Middle East, has been impressive. The company has expressed its intention to expand its product offerings and enhance its digital presence in these regions through partnerships with local retailers and localized marketing campaigns. As a result, industries such as retail, e-commerce, and advertising are expected to benefit from Nike’s
Sourcing and Procurement insights about Nike
Nike is making changes to its product assortment and inventory as it expects delays in supplies for the next few quarters. Sourcing and procurement solutions that seamlessly work with inventory management might be relevant for Nike to explore as it works to keep pace with consumer demand.
- In the upcoming first quarter, Nike expects revenue growth to be “flat to slightly up,” with gross margin pressure exceeding 100 basis points (1 percentage point) as the company attempts to recalibrate supply and demand in Greater China, and anticipates higher promotional activity to sell seasonal inventory.
- Inventories totaled $8.4 billion, up 23 percent compared to the prior year period of $6.9 billion. The increased was driven by elevated in-transit inventories due to extended lead times from ongoing supply chain disruptions, partially offset by strong consumer demand.
- For product entering North America, average lead times (counted by day) remain in “the low 80s,” according to Friend, who said transit times are still two weeks longer in the fourth quarter relative to last year.
- Nike said that inventory supply is normalizing across North America, EMEA, Asia Pacific and Latin America. This is a good sign for Nike, which saw three consecutive quarters where consumer demand significantly outpaced available supply.
Logistics and Supply-Chain insights about Nike
Nike ranks as the most valuable apparel brand with increased consumer demand for sportswear. They will look to maintain business efficiency in their supply chain in order to retain this position.
Nike is getting impacted by ongoing supply chain constraints and higher logistics costs. They continue to make strategic technology investments indicating an intention to build digital leadership.Supply chain and logistics solutions that can bring greater efficiency to their operations might be relevant for Nike to consider at this stage.
Some updates on Nike’s supply-chain and logistics strategy:
- FY22 Q4 Combined NIKE Press Release Schedules
- Gross margin decreased 80 basis points to 45.0 percent, primarily due to higher inventory obsolescence reserves in Greater China and elevated freight and logistics costs.
- Operating overhead expense increased 11 percent to $11.0 billion due to higher strategic technology investments, and an increase in wage-related expenses and NIKE Direct variable costs.
- Inventories for NIKE, Inc. were $8.4 billion, up 23 percent compared to the prior year period, driven by elevated in-transit inventories due to extended lead times from ongoing supply chain disruptions, partially offset by strong consumer demand.
- Nike retains title as world’s most valuable apparel brand
- Nike has retained the top spot as the most valuable apparel brand in the ranking since the rankings were instituted, according to a new report from leading global brand consultancy, Brand Finance.
- Smaller sportswear brands are amongst the fastest growing brands in the ranking with Skechers (brand value up 68% to $3.2 billion) and Li Ning (brand value also up 68% to $2.0 billion).
Want more Nike insights tailored to your product?
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This bodes the question – why only Nike? Why not research Ralph Lauren, Levi’s Tommy Hilfiger and other national apparel retailers? Try them all from here.
