Exercised is the value of options exercised during the fiscal year. Scores indicate decile rank relative to index or region. A decile score of 1 indicates lower governance risk, while a 10 indicates higher governance risk. Advertise with us. All rights reserved. Data Disclaimer Help Suggestions. Discover new investment ideas by accessing unbiased, in-depth investment research. John J. Donahoe II. Chief Operating Officer. Nike Products are actually manufactured across 41 countries, with the help of factories and 1.
Most of Nike's factories are outsourced, meaning that they don't own the actual facility and they 'contract' the factories to produce for them. They contract the manufacture of their apparel, equipment, and even footwear. Because of the amount of product that Nike must design in order to fill their significant orders, they have had to outsource to that many manufacturers across the globe.
Each factory that they use has to focus on a different type or style of product. As of late , Nike had over retail stores and outlets worldwide! They also distribute to thousands of third party resellers or stores. So there is a huge importance for Nike to be able to produce enough goods for their distribution channels and maintain their overall global retail strategy.
You can certainly find their manufacturing sites in countries like Vietnam, China, Japan, Indonesia, Thailand, and Italy. The reason that Nike has all of its major factories in Asia is due to the low cost of wages and the ability to produce high quality products for a fraction of the cost of that in North America. It's simply better business for major corporations to shift their production to lower-cost countries, in order to maximise their profit margins.
Having a large brand comes with a need for extremely large volumes of goods. For example, seasons are spread out year-round because of both sides of the hemisphere, so due to this Nike needs to be able to manufacture winter and summer gear literally days a year. This is a lot of product that needs to be created just for Nike to accommodate all of the seasons year-round.
When looking at material costs in North America, you'll see a high price for a minimal product. The best way to keep profit margins healthy is to move their significant factories to places like China and Vietnam, where Nike can outsource their factories and keep employees indirectly contracted through a third party. When looking at a profit margin of The majority of Nike's products are manufactured by independent contractors and are sold either direct-to-consumers through Nike retail outlets and digital platforms, or through independent distributors, licensees, and sales representatives.
Net income rose Revenue grew 8. Nike said that its revenue performance was impacted by strength in digital growth, which was offset by lower revenue in its wholesale business and its company-owned stores. The company also noted that it experienced temporary closures of stores in regions seeing rising COVID cases and that some regions continue to experience declines in physical retail traffic. However, the majority of Nike's stores remain open.
Nike also breaks out revenue, but not profits, for its major product lines and distribution channels. A negligible amount is attributable to Other, which includes revenue from licensing businesses of the Global Brand Divisions and Converse segments, and to foreign currency hedge gains and losses accounted for in the Corporate segment. Nike reports both revenue and earnings before interest and taxes EBIT , its primary measure for evaluating operating performance, for its geographic business segments.
The data reported in the pie charts above and in the share percentage calculations in the breakdowns below exclude segments with negative revenue or negative profits. The segment's revenue grew 0. Revenue and EBIT for the quarter rose Revenue and EBIT were up Revenue and EBIT rose 0.
Nike's Global Brand Divisions segment revenue is primarily attributable to NIKE Brand's licensing businesses that are not part of any of the geographic segments, demand creation and operating overhead expense, and costs associated with its global digital operations and enterprise technology. Nike's Converse segment is engaged in the design, distribution, licensing and sale of casual sneakers, apparel, and accessories under the following trademarks: Converse, Chuck Taylor, All-Star, One Star, Star Chevron, and Jack Purcell.
Revenue fell 0. Nike's Corporate segment revenue primarily consists of foreign currency hedge gains and losses related to revenues generated by Nike's other operating segments. The Direct to Consumer distribution channel grew The CDA program, first announced in June, aims to accelerate its digital transformation in order to generate long-term growth and profitability.
As part of our effort to improve the awareness of the importance of diversity in companies , we offer investors a glimpse into the transparency of Nike and its commitment to diversity, inclusiveness, and social responsibility.
We examined the data Nike releases to show you how it reports the diversity of its board and workforce to help readers make educated purchasing and investing decisions. Below is a table of potential diversity measurements. Accessed Jan. Accessed Feb. Accessed Aug.
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