Nike has added roughly $6.7 billion to total revenue since 2015, increasing at an average annual rate of 6.5%. Nike vs adidas 1. Nike vs. Adidas Sportswear companies like Nike and Adidas, have made many products throughout the world that are very popular and continue to grow in their reputations of being the top two leading companies in the sports industry. Nikeâs market capitalization as of July 2019 stood at $140 billion â more than double to that of Adidasâ $65 billion. In last quarter of the 2009 its sales percentage was declined by 5 % which was because of their increase in marketing costs. 28.) Moreover, Nikeâs net income margin of 10.3% was roughly 30% more than Adidas margin of 7.8%, However, since 2015, Nikeâs net income margin has declined while Adidas, led by strong revenue growth has been able to steadily increase margins. However, if we compare the performance of the largest two brands in recent years, Adidas is in an aggressive mood and all set to outperform Nike. Nike vs Adidas: a league of their own. Submitted By Nike has tried to replace adidas as the worldâs leading brand for soccer gear worldwide. The history of NIKE is a true American success story. Started as a small re-seller of an obscure Japanese running shoe (which later became Asics) line in a small shop in Santa Monica, NIKE has grown exponentially over the years into one of the world's most recognizable (and profitable) brands. You can play with assumptions, or try scenarios, as-well-as ask questions to other users and experts. Adidas has been more aggressive in marketing its products. Nike is the relative newcomer, having been set up by Philip Knight and Bill Bowerman in 1971, while German company Adidas is celebrating 70 years in existence in 2019. As of 2018, Nikeâs net income of $4 billion was almost double Adidasâ $2 billion. Nike is the giant of the industry. However, both these apparel companies have continued to outperform the industry. Comparing Nikeâs Market Capitalization to that of Adidas, Market Capitalization: Price per share x Shares outstanding as per latest annual filings, Conclusion: Nike has a larger scale and generates more profits, but Adidas is closing the Gap. Nike vs Adidas - Financial Analysis 1. Nike vs Adidas sales: where do they make their sales and revenue? Thanks to the iconic Superstar and NMD line, paired with buzzworthy endorsements with the likes of Kanye West, the three-stripes were back in the game. Nikeâs revenues exceed Adidasâ by 50%, but Adidas has reported strong revenue growth over recent years Nike has added roughly $6.7 billion to â¦ The estimated value of the brandâs top player endorsements at the Championships this year will include Franceâs Paul Pogba (+â¬4m), Walesâ Gareth Bale (+â¬4m) and Germanyâs Mesut Ãzil (+â¬3m), while Nikeâs catalogue of superstars includes the likes of Portugalâs three time Ballon dâOr winner, Cristiano Ronaldo (+â¬19m), Englandâs Wayne Rooney (+â¬3m) and Swedenâs Zlatan IbrahimoviÄ (+â¬1.5m). Although, Nike and Adidas have added roughly $7 billion to total since 2015, Adidasâs growth has come at a 70% faster rate than Nike. Nike vs. Adidas: The three stripes is making gains on the swoosh â but that doesn't tell the whole story Back to video Adidas More importantly, the success of Superstar is part of a broader resurgence for Adidas AG that has a growing number of consumers and investors switching from âTeam Nike.â (Nikeâs Q3 comprises the 13-week period ended Feb. Sportswear GROWTH FootwearApparel 4. Comparing the results to its competitors, Nike Inc reported Total Revenue decrease in the 3 quarter 2020 year on year by -0.62 %, faster than overall decrease of Nike Inc 's competitors by -7.43 %, recorded in the same quarter. They pretty much have the same target: people who love sports. Adidas Strengths. On Twitter, Adidasâ 2.9m football and soccer followers are outnumbered by Nikeâs 4.6m whilst on Facebook, the gulf is even larger with Nike Footballâs page enjoying over 42.2m followers, compared to Adidasâs 21.8m. With almost double the followership of Adidas, Nike reigns supreme in terms of the numbers. This EPS figure coupled with a P/E multiple of 30x, works out to a price estimate of $89 for Nikeâs stock (shows cash and valuation analysis), which is roughly 10% ahead of the current market price. Surprisingly, the founders of Trefis discovered that along with most other people they just did not understand even the seemingly familiar companies around them: Apple, Google, Coca Cola, Walmart, GE, Ford, Gap, and others. They operate mainly in the sports footwear industry, with Nike having the upper edge in competition. Sportswear INDUSTRY Footwear Apparel Hardware 3. Photographer:... [+] Christopher Dilts/Bloomberg. Adidas (ADDDF) brand sales in North America were up 25% in â¦ On the other hand, Nikeâs marketing expenditure of $3.8 billion was higher than of Adidas but represented less than 10% of Nikeâs total revenues. Trefis is currently used by hundreds of thousands of investors, company employees, and business professionals. See How Itâs Powering New Collaboration and What-Ifs, For CFOs and Finance Teams| Product, R&D, and Marketing Teams, Like our charts? Adidas has almost four times the number of products than Nike has in its portfolio. EY & Citi On The Importance Of Resilience And Innovation, How Digital Workflows Helped Save Basketball During The Pandemic, Impact 50: Investors Seeking Profit â And Pushing For Change, Michigan Economic Development Corporation With Forbes Insights, After Ozon, Will This Be Russiaâs Hot IPO For 2021, Kazakhstan: The Biggest Surprise In 2020 Frontier Financial Markets. Nike's motto is 'Just do it'. Learn More. That said, both Adidas and Nike have expanded the scale and scope of their operations over time by adding new brands. Adidas appears to have room â¦ Adidasâ growth has been led by its footwear segment which has continued to achieve double-digit growth driven by sales increases in sports-inspired and sport-performance products. Per Trefis, Nike is likely to report an EPS of $2.98 for the year. Adidas has comfortably outpaced Nikeâs growth in the last couple of years, with Adidasâ offerings such as Adidas Neo and Originals receiving positive customer response. We will write a custom Case Study on Nike vs. Adidas specifically for you for only $16.05 $11/page. There is an intense competition that business in Sports industry is facing. ; An Iconic Brand with a Prestigious Legacy: Adidas has nurtured a strong and prestigious legacy and heritage over its long, illustrious history by influencing and shaping numerous aspects of â¦ They have also launched effective buzz marketing campaigns with both innovative products and celebrity endorsements and collaborations. Both of their popularity has become so immense that they are literally household names. Adidas's motto is 'Impossible is Nothing'. This logo represents a tick, which (without going to deep into human phycology) points to positivity and success. Nike and Adidas are two of the largest footwear companies in the world. In comparison, the adidas brand was valued at â¦ Additionally, you can find more Trefis Textiles, Apparel and Luxury Good Industry Data here. Nike vs Adidas: The Merchandise Adidas has 2625 products with prices ranging from 899 to 29999, and Nike has 643 products with prices ranging from 1596 to 36500. Consequently, one would expect Nike to have more reviews and ratings. Whatâs behind Trefis? Nike Things are getting pretty heated between Nike and Adidas right now. Difference between Nike and Adidas Nike and Adidas are two of the most popular sports equipment companies in the world. North America and Western Europe are the pairâs two top regions for sales. Adidas is among the leading sports shoe and apparel brands. The two sportswear giants are at the centre of the battle as the two gear-up to maximise the advertising and sponsorship potential of the Euros this summer. However, there is still a huge gap between Nikeâs and Adidasâ footwear revenues. Adidas, Nike, and Under Armour are competitors in the lucrative market for athletic wear. Max Barnett, Head of Digital, Repucom, said: âAs we saw during the 2015 Rugby World Cup, using this strategy allowed Beats By Dre to generate almost eight times the social media value than a more well established rugby sponsor like Guinness. A logo hangs on display outside a Nike Inc. store in Chicago, Illinois, U.S. Explore example interactive dashboards and create your own, Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company's products, that you. Nike in 2015 won the bid against Adidas and officially became the next exclusive provider of uniforms to the NBA. They pretty much have the same target: people who love sports. Not only have Adidas been the number one kit supplier since Euro 96, but they have also been the kit supplier to every winning team (five) since that tournament. The disparity is more evident with half sizes. Now, every World Cup, billions of people tune in as adidas and Nike sponsor national teams, sponsor world-class players, and execute their elaborate marketing plansâ¦all in order to establish themselves as the best soccer-apparel company in the world. The platform uses extensive data to show in a single snapshot what drives the value of a company's business. How does Nikeâs Profitability compare to that of Adidas? If you were to look at the books, it would seem that Nike is absolutely crushing Adidas. Nike is the larger business overall and the market leader in the global sports footwear industry with revenues from their footwear of over $24.2 billion in 2018, compared to Adidas footwear â¦ However, Nike is notably bigger than second-placed Adidas. As of 2018, Adidasâ marketing expenditure stood at $3.5 billion- representing roughly 14% of total revenues. This year, nine of the 24 teams (37%) playing will have kits manufactured by the German sports giant, compared to Nikeâs six (25%), Pumaâs five (21%) and four (17%) being shared among other suppliers. Will Investors Be Satisfied With 10% In 2021? There are two arguments people make when it comes to eCommerce consumer behavior. Adidas and Nike are the most significant brand names in the minds of customers. Today, during major sporting events, social media and digital activation are as relevant to Nike and Adidas as the number of national kits both brands manufacture for teams and the exposure the top endorsements provide in the fight for supremacy. Its main rival is Nike. Within the sports industry, Adidas and Nike are two prominent names across the world countries. While Adidasâs current collection features sneakers for nearly every sports, the first pair of Adidas â¦ The companies and marketers nowadays have to be stylish and functional at the same time to survive in the competition. For this paper, we will be covering and narrating about 'Nike' and 'Adidas'. The brand value of Nike has increased year-on-year since 2010 and reached around 34.4 billion U.S. dollars in 2020. Trefis captures trends in key operating metrics for Nike vs. Adidas in an interactive dashboard, highlighting how Adidas has been able to close the gap on the market leader over recent years through an increased marketing spend. Moreover, global e-commerce growth has boosted the top line for both companies, with both of them achieving more than 35% growth in their digital business in 2018. Beatsâ activation around the opening game led to 50m views, compared to Guinnessâ 13m; something both Nike and Adidas will be looking to and waiting for as the opening game draws closer.â. 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