Nike has ended 2021 as the most valuable apparel firm globally. According to data presented by FinancePR.com, the American outfit achieved a $30.44 billion valuation in 2021. That feat placed it at the helm of the top ten garment firms worldwide.
Nike trounced other reputable brands by a mile in getting to that spot. For instance, the second-placed brand GUCCI attained a valuation of about $16 billion. Louis Vuitton came in third at about $15 billion. And Nike’s closest competitor in the sports segment, Adidas, closed at slightly above $14 billion.
Edith Reads from financePR.com explains those figures. According to her, “The apparels sector continues to thrive amidst the global economy downturn. Nike continues to hold the upper hand here because it faces moderate competition. That’s because it has a highly differentiated product offering and consumer switching costs have remained low within the sector.”
Nike’s secrets to profit
Nike’s success point to the firm’s strong financial record. In the 2020 fiscal year, it made over $44 billion in sales. That increased from its 2019 fiscal year’s figures that stood at $39.1 billion. In turn, this figure had surpassed the previous years by $3 billion.
Further, market data indicates Nike’s North American business to be its most lucrative one. The region contributed over $17 billion of the firm’s 2021 revenues. Again, the U.S market is its most significant one, accounting for about 40 percent of its global earnings.
Moreover, Nike generates income from three significant segments. These are the apparel, footwear, and equipment segments, of which the footwear segment is the largest and most profitable of them all. It earned the company about $ 28 billion from sales in 2021.
Today, three factors continue shaping the world’s clothing market. First, there’s been a significant growth of developing economies. Secondly, the American economy has been slow in recovering from COVID-19 effects. And finally, there’s been a noticeable decline in the European market.
Though headquartered in Oregon in the U.S, Nike.Inc has a global presence. Its most popular products include Air Jordan, Nike, and Converse. But it also markets a broad selection of other sports items under its umbrella. Besides its ‘Swoosh’ logo, the brand is also readily recognized by the catchy tagline, “Just do it.”
The firm has the endorsement of prominent names in the sporting arena, including LeBron James, Cristiano Ronaldo, Rafael Nadal, and Rory McIlroy. It also sponsors teams with a global following, including FC Barcelona, RB Leipzig, and Paris Saint-Germain.
Nike, Inc. has boosted its global workforce by over 70 thousand in the last five years. It says a majority of them are from North America. Some of Its key competitors in the sportswear front include Puma, Adidas, and Under Armour.