Nike's re run

Nike looks back in time to when about thirty years ago they just started selling their shoes and clothing from the back of Volkswagen van. For the Nike Vintage Running collection the design team took their inspiration from the early days and the original designs.

The Vintage Col lection looks very much like they literally sat in a box for thirty years: colours have faded, strange Swooshes on the side, made of 1970s-grade nylon and iconic colour combinations have been used. Think Kermit green and oker yellow or various pastel shades mixed with vibrant colours.

To match the old school runners, Nike also reintroduced a selection of six T-shirts with 70s slogans. Shirts with old catchphrases like ‘Just Do It' and ‘Have a Nike day' with the recognisable Smiley face with Swoosh mouth have been reproduced. The Tee's are exclusively available at Urban Outfitters.

www.nike.com/nikevintage/
22 August 2007

Nike wins counterfeit claims

Nike is set to receive compensation from two Chinese shoemakers and a French supermarket group over counterfeit shoes, China's state media agency has said. According to Reuters, Jinjiang Longzhibu Shoes, Jinjiang Kangwei Shoes and France's Auchan, must pay a total of £23,300 to Nike. The fake Nike trainers were found on sale in a Shanghai store. Despite Beijing's pledges to clamp down on counterfeiting, fake goods are still widely produced and sold in China. This has led to repeated complaints from Western governments, most recently by the US, which last week formally requested that the World Trade Organisation crack down on Chinese piracy and counterfeiting.

Nike itself is one firm that has repeatedly seen its footwear and other sporting goods copied in China. Last year US authorities seized more than 135,000 fake Nike trainers that had been imported from China. China's official production work for Western firms has also come in for criticism in recent weeks. In another case, the New Zealand government has said it will investigate whether imported Chinese-made children's clothes have dangerously high levels of the chemical formaldehyde.

21 August 2007

Nike Q4 earnings up

Sporting goods giant Nike Inc. has reported a rise in fourth quarter earnings of 31.6 percent to $437.9 million (£219.5 million). Sales for the quarter increased 9.4 percent to $4.38 billion. Earnings for the fiscal year 2007 increased 7 percent to $1.5 billion, as sales climbed 9 percent to $16.3 billion.

“Opportunities for growth at Nike have never been greater,” said Mark Parker, Nike president and chief executive. “We have a unique ability to consistently turn consumer insights into performance products and experiences. That's a big part of what distinguishes Nike as a global industry leader.” According to Parker, this past quarter was the twenty-third consecutive quarter of year-on-year revenue growth.

All geographic regions and product categories experienced growth during the fourth quarter. Footwear reached the $1 billion mark for the first time this quarter, and the Converse business enjoyed its best quarter to date. The exception was the Americas , where sales remained unchanged. Future orders for apparel and footwear are expected to rise 12 percent to $7.7 billion, the company said.

www.nike.com
27 June 2007

Nike cracks down on working conditions

Sportswear giant Nike has pledged to crack down on the amount of overtime done at factories it uses worldwide as part of efforts to improve working conditions. The sportswear firm will seek to abolish "excessive" overtime at its 700 contract factories by 2011, a move which would affect 800,000 workers. Nike gave details of all such factories for the first time in 2005 after claims of poor conditions at some plants. The firm has also set new targets for reducing waste and carbon emissions.

Compliance standards
Publishing its annual corporate responsibility report, Nike said the issue of excessive overtime was one of the "most serious" facing the company and the industry as a whole. Nike uses more than 130 factories in China, where unpaid overtime is common. Its other major contractors, which manufacture Nike-branded products ranging from trainers to footballs, include India, Vietnam, Malaysia, Brazil and Indonesia.

Nike said improving conditions at these factories was a priority, citing its decision to publish details of its procedure for auditing their compliance with its standards on pay, working conditions and employee benefits. Earlier this month Nike said it was resuming production of hand-stitched leather footballs in Pakistan, previously suspended due to concerns about the use of child labour. "We see corporate responsibility as a catalyst for growth and innovation," said Nike's chief executive Mark Parker.

"It is an integral part of how we can use the power of our brand and the scale of our business to create meaningful change." Separately, Nike said it had set new targets for reducing waste in its business, mainly stemming from product design and packaging, by 2011. The firm has also pledged to become "climate neutral" by the same date, adding that it had exceeded its carbon reduction targets over the past two years.

www.nike.com
1 June 2007

Nike reports increase in profits

Nike, the world's largest maker of sports clothing and shoes, has reported better-than-expected profits. Net profit rose 8% to $350.8m (£178m) in the three months to 28 February, compared with $325.8m a year earlier. Sales rose 9% to $3.93bn in the period. However, Nike also said that US sales and margins were under pressure, while demand in the market including the UK, France and Japan dipped in the quarter. Nike has suffered as many consumers have reined in spending, analysts said.

Two of Nike's main customers in the US, Foot Locker and Finish Line, have experienced a difficult retail environment. "It's no secret that mall-based athletic specialty guys have had a pretty tough year," said Charlie Denson, Nike's brand president. Analysts said that Nike gets about a fifth of its total sales from the two retailers. "The US is a concern," said Sara Hasan, an analyst at McAdams, Wright, Ragen. "That hit people out of left field."

While some of the company's key export markets came under pressure, with Japanese sales down 3%, others performed well, helped in large part by the weakness of the US dollar. A weaker dollar boosts the value of Nike's foreign sales when currencies such as the euro are converted back into the US currency. During the quarter, European sales climbed 15%, while in Asia Pacific they increased by 11%. The company's top brands such as Converse also performed well. Even so, the concerns dented the company's share price, and the stock dipped about 3% in electronic after-hours trading in New York, signalling that they would fall when markets opened later on Friday.

www.nike.com
23 March 2007

Nike new growth strategy

Athletic concern Nike Inc has announced its plans for a new global growth strategy. This should help generate $23 billion in revenues by 2011. The Beaverton, Oregon-based company reported revenues of $15 billion in 2006. It added that it expects the Nike brand to generate 75 percent of the growth. The brand will be launching new products for six target areas: running, basketball, soccer, woman's fitness, men's training and sport culture. “As the market leader, we have the ability and the responsibility to take the industry and our partners to a new and better place,” said Nike Inc President and chief executive Mark Parker.

The company's retail partners are expected to continue to generate more than 80 percent of total sales in 2011. Nike will expand its direct-to-consumer businesses, including full-price stores, factory outlets and e-commerce. By 2011, it predicts direct-to-consumer sales will account for 16 percent of sales, compared with the current 12 percent. Furthermore, the company plans to open 100 full-price Nike stores worldwide. “Becoming a better retailer will help us be a better wholesale partner,” Parker said.

www.nike.com
8 February 2007

Nike teams up with Ronaldinho

Brazilian football hero Ronaldinho has collaborated with Nike and last week unveiled their new Signature Collection. The collection is the sporting giant's first footballer collaboration, following Tiger Woods and Michael Jordan to create product lines based around a celebrated sporting hero. Nike worked with Ronaldinho to gain insights into his life, personality and the way he plays his game, and developed products, such as a football boot, called Tiempo Ronaldinho, clothing and new equipment, tuned to the player's specifications.

Ronaldinho is a two-time World Player of the Year and is currently in his fourth season with defending European League Champions FC Barcelona. Joaquin Hidalgo, Vice President, Global Brand Marketing & Nike Football commented: “We are very excited to launch the Ronaldinho signature collection. We created our first signature collection in football around him as he truly transcends the game of football and connects with consumers throughout the world through his unique style of play, his passion for the game and personality.”

www.nike.com
20 November 2006

Nike Q1 sales up, earnings down

Sporting goods giant Nike Inc. reported a 12.7 drop in earnings to $377.2 million (£198 million) for the first quarter to 31 August. Sales rose 8.6 percent to $4.2 billion. The fall in earnings was largely due to the expensing of stock options, the Oregon-based company said. Not including these expenses, earnings fell 3 percent. Sales were driven by growth in all of Nike products' regional markets, especially Asia-Pacific and the Americas , which both grew 13 percent. Europe saw sales increase 4 percent to $1.3 billion. Footwear sales there fell 1 percent to $679.5 million, while apparel sales rose 12 percent to $487.0 million and equipment revenues gained 7 percent to $104.4 million. Pre-tax earnings for the region declined 8 percent to $302.5 million. A company spokesman declined to comment.

The group's other businesses, which include Converse, Nike Golf, Nike Bauer Hockey and Cole Haan Holdings Inc, also witnessed growth. “We're off to a strong start,” Nike president and chief executive Mark Parker said in a statement. “While making major brand investments to drive key markets and implementing new accounting rules to include stock option expenses, we continued to deliver strong top line growth and laid the foundation for another successful year.”

www.nike.com
22 September 2006

Nike sees Q4 earnings slide, sales rise

Sporting goods giant Nike reported a 5 percent drop in fourth quarter earnings due to a one-off charge related to an arbitration ruling. Sales, however, were up 8 percent thanks to strong footwear and apparel sales. The company said net income for the quarter ended 31 May fell to $332.8 million on sales that rose to $4 billion (£2.2 billion) from $3.7 billion. The one-off charge was related to an arbitration ruling for the Converse brand. Profits for the year gained 15 percent to $1.4 billion on sales up 9 percent to $15 billion. “With deeper focus on discrete segments of our business, strong connections with consumers through global initiatives such as Joga Bonito, and compelling product innovations such as Air Max 360, we delivered very strong earnings growth and record revenues for the year,” Mark Parker, president and chief executive of Nike, said in a statement.

US sales in the fourth quarter rose 10 percent to $1.5 billion. Footwear sales increased 10 percent to $993.7 million, while apparel sales rose 18 percent to $395.7 million. Sales and profits rose in all regions during the full fiscal year. “We deepened our brand leadership in core categories such as basketball and soccer, and experienced strong growth in key markets such as the United States , Latin America, China and Russia ,” said Parker. Sales in group's other businesses, which include Converse, Cole Haan, Hurley International and Exeter brands, increased 13 percent to $595.5 million from $529.2 million last year. Global future orders gained 5 percent on last year's, to $6.6 billion. Meanwhile, gross margins fell in the fourth quarter to 43.8 percent from 45.2 percent during the same period last year. Gross margins for the year fell form 44.5 percent to 44 percent.

www.nike.com
28 June 2006

Get ready for the Nike-iPod

Nike has teamed up with Apple to develop innovative new products for runners that will enable footwear to communicate with the iPod nano. The Nike+iPod Sport Kit, which will cost about $29, includes an in-shoe sensor, which attaches to Nike+ ready footwear, and a receiver that fits to the iPod nano. The first compatible shoe to be released will be the Nike Air Zoom Moire in July for about $100, but Nike is planning to make many of its leading footwear styles Nike+ ready.
Once connected, information on distance, calories burned and pace is stored on iPod and displayed on the screen, while real-time audible feedback is also provided through headphones.
Afterwards, the iPod nano can be connected to a computer and, through iTunes, can automatically sync and store workout data in a customised workout log on nikeplus.com. That website also allows users to log workout data, view and evaluate personal training goals and review distance, time, pace and calories burned.

24 May 2006

Hackney Council may sue Nike for logo use

Hackney Council is threatening to sue sportswear giant Nike for using the symbol of its borough on Nike merchandise. The council is demanding Nike withdraws sportswear bearing the logo until the dispute is settled and wants a percentage of sales revenue, free sportswear for all schoolchildren and an assurance that all the Hackney range is manufactured ethically.

The council claims Nike uses the Hackney symbol on T-shirts, vests, trainers and even footballs without permission. The council has used the logo since 1965 and Nike has incorporated it on its products for about six months.
A council employee was first to spot it in Nike’s Oxford Street shop. Ironically, Nike is notoriously protective of its own trademark. The US firm is values at £11 billion, making it the world’s largest. It appears to have chosen to market a Hackney range because of the close association between football and Hackney Marshes – the largest concentration of pitches in Europe.

David Beckham, Bobby Moore and Sir Geoff Hurst all developed there. Hackney mayor Jules Pips told the Evening Standard: “WE have been using this logo for more than 40 years – since before England won the World Cup. I was shocked that such a huge, global company would use it without even approaching us for permission. Nike have taken, for their own profit, something that belongs to the people of Hackney. They have now offered to meet us and I hope they will have the decency to offer a fair settlement and save this going to court. We have asked them to withdraw all merchandise until this issue can be settled.”

Hackney claim the goods are sold across the glove, with evidence it is being marketed in Japan, Germany, the US and Italy. Tops on the Niketown website with the Hackney Symbol and the words “London Borough of Hackney” around it, are selling for approximate £13. A lawyer stated the case may not be straightforward because it was unlikely the logo was registered as a trademark but there might be a claim for passing off. “It is a legal can of worms,” he said.
Nike stated: “We’re surprised at Hackney having made comment.”

19 May 2006

Nike introduces performance innerwear

Nike is launching a new range of performance innerwear. The sports giant is filling a apparent niche in the women's apparel business with the introduction of six high-tech sports bras and three panty styles. “We are looking to dominate this category,” global vice president of apparel, Mindy Grossman, told WWD. “We are planning this to be a substantial business globally and we wee this as a great opportunity for Nike.”

Currently the athletic innerwear market is dominated by brands like Hanes, Jockey, Champion and Fruit of the Loom. According to Grossman, the company spent years designing the new collection, which features the Revolutionary Support Bra style. The bra is seamless and made of Dri-Fit, a Nike fabric with moisture-management features.

“It has support elements that minimize breast motion, but not through compression,” Grossman commented. She added that each of the six bra styles is designed for different levels of activity, from low to high impact. Meanwhile, sizes go up to 40E for bigger women. Prices range from $35 (£20) to $70. Although the first Revolutionary Support bras have already reached Niketown and other stores this month, the rest of the collection will launch globally in July.

Nike has sold sports bras for a while, but this collection differs in its approach. According to Grossman, the new line was test-worn by Olympic athletes among others. “We realized that we needed to create not just a bra, but a complete system of support that functions for our athletes, as well as for a broader scope of women,” she said. “We have served women athletes for years, and we sought to redefine this category as a critical piece of equipment for her.”

According to the NPD Group, a US research company, sales of women's sports bras amounted to $321.1 million, up 11.1 percent from 2004. Within this market, Nike is the fifth largest purveyor of sports bras. Grossman said the sale of the bras and support products will be accompanied by fit guides and fit specialists to explain the system to consumers. The collection will initially be distributed to Nike retail outlets, sporting goods stores and US department store Nordstrom. The latter has a considerable women's active wear department.

www.nike.com
6 April 2006

Sales rise at Nike despite lagging in Europe

Despite weaker sales in the UK and Europe, Nike has announced a 19% increase in third-quarter profits on the back of strong sales in its core US market. The Group stated profits rose to $325m (£186m) during the period. Robust sales of footwear and clothing offset stagnant demand in Europe and Japan, Nike said. Total sales increased 9% to $3.6bn, compared to $3.3bn a year ago, although margins narrowed as rising fuel costs hit home.

"The strength of our product pipeline, brand portfolio and global reach is enabling us to balance continued challenges in markets such as Western Europe and Japan with strong momentum in other key markets and regions," said chief executive Mark Parker, as was reported by the BBC. Nike has faced increased competition in light of a merger between Adidas-Salomon and Reebok International. Nike is currently in the middle of a dispute with Adidas. It filed a patent infringement suit against the company earlier this year claiming that a number of its rival's trainers copied its technology.

The US giant said the Adidas shoes in question infringed its "Shox cushioning" patents and has demanded damages from its German competitor.

Nike sues Adidas-Salomon

The world's largest sporting goods company Nike has sued the world's number two Adidas-Salomon for allegedly infringing upon its patented Shox cushioning technology. Nike had filed a legal complaint against Adidas-Salomon in a Texan court stating that the infringing products include shoes using Adidas' a3 cushioning system, including the new Kevin Garnett signature shoe and Adidas_1 footwear.

“Nike is widely recognized for its product innovation in footwear and athletic products and they invest heavily to provide performance products to their consumers,” said Eric Sprunk, vice president, Global Footwear Nike, Inc. “It is deeply frustrating and inappropriate when companies borrow or refashion such technologies as their own without making similar investments.” The Shox cushioning technology debuted in 2000 and is protected by 19 separate patents. According to Nike it took 16 years to develop. “Nike often reinvests its revenues into research and development of such new products. Understandably, Nike and its shareholders cannot allow infringement to occur unchallenged.

www.nike.com
>> more Adidas-Salomon @ FashionUnited
17 February 2006

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