Finance & Investment Club Nike Inc. Just do it Finance & Investment Club Nike Inc. Just do it Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque Bo Peng Slide 2 Company Profile Founded in 1972 Headquartered in Beaverton, Oregon Mark Parker-CEO and President Industry-Sportswear and Sports Equipment Number of Employees-30,002 Main Competitors: Reebok, ADIDAS, AND 1, Converse Slide 3 Company Profile Cont. Famous athletes include: Kobe Bryant, Lebron James, LT, Cristiano Ronaldo, Cesc Fabregas Produce many commercials shown worldwide Slide 4 Statistics Price: $67.75 Mkt Cap: 33.44B 52Wk High: 70.60 52Wk High: 70.60 52Wk Low: 51.50 P/E: 18.76 Forward P/E: 18.96 Forward P/E: 18.96 Beta: 0.64 Shares: 492.71M Vol: 1.56M EPS: 3.61 Dividend: 0.23 Inst. Own: 72% Slide 5 Company Analysis NIKE: Goddess of victory. Founded by University of Oregon, Phil Knight & Bill Bowerman in Jan, 1964. Track running shoes. Engages in the design, development, and marketing of footwear, apparel, equipment, and accessory products worldwide. By 1980, 50% market share in the United States athletic shoe market. Went public in December 1980. Slide 6 Slide 7 Textile - Apparel Footwear & Accessories Leaders in Market Capitalization NIKE INC NIKE INC [NKE] NKE NIKE INC NKE $33.3 B COACH INCCOACH INC [COH] COH COACH INCCOH $12.5 B DECKERS OUTDOOR CPDECKERS OUTDOOR CP [DECK] DECK DECKERS OUTDOOR CPDECK $1.8 B WOLVERINE WORLDWIDEWOLVERINE WORLDWIDE [WWW] WWW WOLVERINE WORLDWIDEWWW $1.4 B SKECHERS USA INCSKECHERS USA INC [SKX] SKX SKECHERS USA INCSKX $1.1 B TIMBERLAND CO ATIMBERLAND CO A [TBL] TBL TIMBERLAND CO ATBL $1.1 B CROCS, INC.CROCS, INC. [CROX] CROX CROCS, INC.CROX $910.3 M ICONIX BRAND GROUPICONIX BRAND GROUP [ICON] ICON ICONIX BRAND GROUPICON $820.6 M BROWN SHOE CO INCBROWN SHOE CO INC [BWS] BWS BROWN SHOE CO INCBWS $681.3 M VOLCOM, INC.VOLCOM, INC. [VLCM] VLCM VOLCOM, INC.VLCM $635.6 M Slide 8 SWOT Analysis Slide 9 Nike Inc. Strengths: Very efficient company, best among its sector. Benefiting from low costs due to its outsourcing of production jobs Concentrating on their strengths. Soccer, basketball and golf Partnership with other strong brands (ex. Apple) Higher ROA than competitors Slide 10 Nike Inc. Weakness and Threats Possible loss of market share due to the Reebok- Adidas merge Sluggish economy may influence buyers towards cheaper goods. Up-start firms like Under Armour are building niche markets. Slide 11 Nike Inc. Opportunities Strong global sales and growth. Nike is looking to expand in China primarily, due to this summers Olympics. Continued expansion into custom shoe business. Slide 12 Technical Analysis Slide 13 Slide 14 Recommendation Based on our research we rate Nike Inc. a HOLD because even though they are a dominant company the current recession is not a good time for luxury goods such as 150 dollar sneakers and most other Nike goods.