How Much Does Nike Suck? Monthly Income Of 24 Billion Yuan, The Market Value Of The Top Ten Adidas

In December 19th, Nike released the latest quarterly report ending November 30th.
Nike handed over its transcripts far beyond market expectations. Quarterly reports show that Nike earned $10 billion 330 million in revenue in 9-11 months, or about 72 billion 400 million yuan, with a net profit of 1 billion 120 million dollars, or about 7 billion 800 million yuan. In addition, the Jordan brand's quarterly revenue for the first time broke 1 billion US dollars.
CEO Mark Parker (Mark Parker) is pleased with his words. He said, "I have never been so optimistic about the future of this company." This is Parke's last earnings report in CEO. Obviously, he is very satisfied with the result.
But shareholders are obviously not satisfied. Nike shares closed down 1.2% this morning.
Nike = ten Adidas
Mark Parker is a hero of Nike. He joined Nike in 1979 and worked as a footwear designer. He started working as CEO in 2006 and has worked in Nike for 40 years.
After Parke took over Nike from Phil Knight, Nike doubled its annual revenue from $15 billion to $39 billion 100 million last year and broke the record of a single quarter sales of over $10 billion in Nike.
Nike has left Adidas and other rivals far behind. In 2018, Nike's total revenue was $39 billion 100 million, which was nearly 50% higher than Adidas's 21 billion 900 million euro.
Under the leadership of CEO, the footwear designer, Nike's stock price has risen ten times. The stock price is much better than Adidas's.
At present, Nike's market value has risen to $157 billion 900 million, Adidas's market capitalization is only $16 billion 300 million, Nike almost tops ten Adidas.
Of course, hidden worries still exist. Parke is about to call the curtain. Nike's burdens will be left to newcomers.
The challenge of the new chief: not to let the middlemen make the difference.
Starting in January 13, 2020, Nike CEO will be held by John Donaho (John Donahoe). Parke will continue to serve as executive chairman.
Donaho's burden on Nike's new boss is not light. We can see a hint from the earnings report.
The quarterly report shows that Nike's stock is 15% higher than the same period last year. In the 9-11 months of this year, Nike's revenue in North America increased by 5% over the same period last year, the slowest growth area, and the North American profit fell by 1% compared with the same period last year.
That is to say, in its largest North American market, Nike is rising rapidly.
In recent years, Nike's business growth has slowed down significantly. Since 2015, the total revenue of Adidas footwear business has increased by 5 billion 800 million US dollars, an average annual growth of 17.6%. Nike increased by only $4 billion 300 million, an average annual growth of 6.8%.
The second generation is stronger than the boss, and Nike's solution is digitalization.
In appointing Donaho's official statement, Nike made it clear that Donohue's expertise in digital commerce, technology, global strategy and leadership is the key to his appointment as a leader in digital transformation.
Donaho served as CEO of eBay in 2008-2015 years. His professional background can help Nike speed up its digital transformation and gradually get rid of its dependence on traditional retail channels.
Most of Nike's sales depend on retail partners, that is, distributors, and support Foot Locker, Nordstrom, Tao Bo sports and other listed companies. But as Nike accelerates the strategy of digital retailing and Consumer Direct Offense, the balance is bound to be broken. This is not good news for retail partners alienated by Nike, but it can increase Nike's profitability.
Nike doesn't want to let the middlemen make the difference. It has already launched its own e-commerce business. The annual report shows that Nike's direct sales to consumers account for 3 of sales.
In November this year, Nike announced that it would no longer sell products directly to Amazon, an e-commerce platform.
Who can win in China?
In fact, Nike remains the key to high growth in the Chinese market.
Greater China is the fastest growing region of Nike's revenue and profits. In 9-11 months of this year, Nike's sales in Greater China increased by 23% to 1 billion 850 million US dollars, or about 13 billion yuan. Greater China's contribution to the pre tax profit (interest and income tax before the profits) amounted to 690 million US dollars, or about 4 billion 900 million yuan.
In 2018, Anta's total sales volume reached 24 billion 100 million yuan, an increase of 44.4% over the same period last year, creating the best performance of Anta group. Lining's total income reached 10 billion 500 million yuan. Together, the two companies are not as good as Nike's annual sales in Greater China.
In China, Nike and Adidas both have high popularity, and these "foreign brands" share even more than the local brands, Lining and Anta.
Nike's Air Jordan series and Adidas's Yeezy series are extremely popular. People are eager to buy limited amount of shoes and are willing to raise their price several times to buy shoes from cattle. Tmall's original price of 1399 yuan a pair of Air Jordan, must first register, draw lots, and one person to buy a pair.
Nike has attached great importance to the Chinese market. It has launched the Nike App Chinese version, covering fitness, football, basketball, E-sports and yoga, as well as Nike SNKRS App for shoes. Adidas also launched its own software, Adidas, to facilitate consumers to choose products directly. Anta did not produce similar software.
Reporters saw that many people in the apple App store comment area, reflected in the software application problems encountered. Software is not smooth enough to use, and it is also the norm of foreign brands App. It is still unknown whether Nike and Adidas can do better.