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Finance & Finance & Investment Club Investment Club Nike Inc. Nike Inc. Just do it Just do it Investology: Investology: Ali Ali Bakhshandehfard Bakhshandehfard Jonathan Yin Jonathan Yin Jamie Duque Jamie Duque Bo Peng Bo Peng

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Page 1: Finance & Investment Club Nike Inc. Just do it Finance & Investment Club Nike Inc. Just do it Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque

Finance & Investment ClubFinance & Investment Club

Nike Inc.Nike Inc. Just do itJust do it

Investology: Investology: Ali Bakhshandehfard Ali Bakhshandehfard Jonathan YinJonathan YinJamie DuqueJamie DuqueBo PengBo Peng

Page 2: Finance & Investment Club Nike Inc. Just do it Finance & Investment Club Nike Inc. Just do it Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque

Company ProfileCompany Profile

Founded in 1972Founded in 1972

Headquartered in Beaverton, OregonHeadquartered in Beaverton, Oregon

Mark Parker-CEO and PresidentMark Parker-CEO and President

Industry-Sportswear and Sports Industry-Sportswear and Sports EquipmentEquipment

Number of Employees-30,002Number of Employees-30,002

Main Competitors: Reebok, ADIDAS, AND Main Competitors: Reebok, ADIDAS, AND 1, Converse1, Converse

Page 3: Finance & Investment Club Nike Inc. Just do it Finance & Investment Club Nike Inc. Just do it Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque

Company Profile Cont.Company Profile Cont.

Famous athletes include: Kobe Bryant, Famous athletes include: Kobe Bryant, Lebron James, LT, Cristiano Ronaldo, Lebron James, LT, Cristiano Ronaldo, Cesc FabregasCesc Fabregas

Produce many commercials shown Produce many commercials shown worldwideworldwide

Page 4: Finance & Investment Club Nike Inc. Just do it Finance & Investment Club Nike Inc. Just do it Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque

StatisticsStatistics

Price: $67.75Price: $67.75Mkt Cap: 33.44B       Mkt Cap: 33.44B       52Wk High: 70.60   52Wk High: 70.60   52Wk Low: 51.50 52Wk Low: 51.50 P/E: 18.76 P/E: 18.76 Forward P/E: 18.96    Forward P/E: 18.96    Beta: 0.64    Beta: 0.64    Shares: 492.71M  Shares: 492.71M  Vol: 1.56M        Vol: 1.56M        EPS: 3.61    Dividend: 0.23EPS: 3.61    Dividend: 0.23Inst. Own: 72%Inst. Own: 72%

Page 5: Finance & Investment Club Nike Inc. Just do it Finance & Investment Club Nike Inc. Just do it Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque

Company AnalysisCompany Analysis

NIKE: Goddess of victory.NIKE: Goddess of victory.– Founded by University of Oregon, Phil Knight & Bill Founded by University of Oregon, Phil Knight & Bill

Bowerman in Jan, 1964. Bowerman in Jan, 1964. – Track running shoes.Track running shoes.

Engages in the design, development, and Engages in the design, development, and marketing of footwear, apparel, equipment, and marketing of footwear, apparel, equipment, and accessory products worldwide. accessory products worldwide. By 1980, 50% market share in the United States By 1980, 50% market share in the United States athletic shoe market.athletic shoe market.Went public in December 1980. Went public in December 1980.

Page 6: Finance & Investment Club Nike Inc. Just do it Finance & Investment Club Nike Inc. Just do it Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque
Page 7: Finance & Investment Club Nike Inc. Just do it Finance & Investment Club Nike Inc. Just do it Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque

Textile - Apparel Footwear & Textile - Apparel Footwear & AccessoriesAccessories

Leaders in Market Capitalization Leaders in Market Capitalization

NIKE INC [[NKE] ] $33.3 B $33.3 B

COACH INC [ [COH] ] $12.5 B $12.5 B

DECKERS OUTDOOR CP [ [DECK] ] $1.8 B $1.8 B

WOLVERINE WORLDWIDE [ [WWW] ] $1.4 B $1.4 B

SKECHERS USA INC [ [SKX] ] $1.1 B $1.1 B

TIMBERLAND CO A [ [TBL] ] $1.1 B $1.1 B

CROCS, INC. [ [CROX] ] $910.3 M $910.3 M

ICONIX BRAND GROUP [ [ICON] ] $820.6 M $820.6 M

BROWN SHOE CO INC [BWS] [BWS] $681.3 M $681.3 M

VOLCOM, INC. [VLCM] VOLCOM, INC. [VLCM] $635.6 M$635.6 M

Page 8: Finance & Investment Club Nike Inc. Just do it Finance & Investment Club Nike Inc. Just do it Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque

SWOT AnalysisSWOT Analysis

Page 9: Finance & Investment Club Nike Inc. Just do it Finance & Investment Club Nike Inc. Just do it Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque

Nike Inc.Nike Inc.

Strengths:Strengths:– Very efficient company, best among its sector. Very efficient company, best among its sector.

Benefiting from low costs due to its Benefiting from low costs due to its outsourcing of production jobsoutsourcing of production jobs

– Concentrating on their strengths. Soccer, Concentrating on their strengths. Soccer, basketball and golfbasketball and golf

– Partnership with other strong brands (ex. Partnership with other strong brands (ex. Apple)Apple)

– Higher ROA than competitorsHigher ROA than competitors

Page 10: Finance & Investment Club Nike Inc. Just do it Finance & Investment Club Nike Inc. Just do it Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque

Nike Inc.Nike Inc.

Weakness and ThreatsWeakness and Threats– Possible loss of market share due to the Possible loss of market share due to the

Reebok- Adidas mergeReebok- Adidas merge– Sluggish economy may influence buyers Sluggish economy may influence buyers

towards cheaper goods.towards cheaper goods.– Up-start firms like Under Armour are building Up-start firms like Under Armour are building

niche markets.niche markets.

Page 11: Finance & Investment Club Nike Inc. Just do it Finance & Investment Club Nike Inc. Just do it Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque

Nike Inc.Nike Inc.

OpportunitiesOpportunities– Strong global sales and growth. Nike is Strong global sales and growth. Nike is

looking to expand in China primarily, due to looking to expand in China primarily, due to this summers Olympics.this summers Olympics.

– Continued expansion into custom shoe Continued expansion into custom shoe business.business.

Page 12: Finance & Investment Club Nike Inc. Just do it Finance & Investment Club Nike Inc. Just do it Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque

Technical AnalysisTechnical Analysis

Page 13: Finance & Investment Club Nike Inc. Just do it Finance & Investment Club Nike Inc. Just do it Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque

Technical AnalysisTechnical Analysis

Page 14: Finance & Investment Club Nike Inc. Just do it Finance & Investment Club Nike Inc. Just do it Investology: Ali Bakhshandehfard Jonathan Yin Jamie Duque

RecommendationRecommendation

Based on our research we rate Nike Inc. a Based on our research we rate Nike Inc. a HOLDHOLD because even though they are a because even though they are a dominant company the current recession dominant company the current recession is not a good time for luxury goods such is not a good time for luxury goods such as 150 dollar sneakers and most other as 150 dollar sneakers and most other Nike goods.Nike goods.