Nike Share Price Explained: NKE Stock Trading

You may be familiar with Nike's athletic footwear and its iconic ‘Just Do It’ or ‘Swoosh’ logo. Nike Inc. stands as the leading global supplier and manufacturer of both athletic footwear and apparel, and you can participate in the rising and falling prices of Nike stock without being a shareholder.

This article explores Nike's business segments, stock performance, and how to trade NKE stock price movements.

Main Points:

• Nike is the leading company in the global athletic footwear and apparel industry.
• Nike operates through three main divisions: Nike Brand, Nike Converse, and Nike Corporate.
• Nike went public on the NYSE in Dec 1980 with a price of $18 per share.
• Nike has two classes of shares, class A and class B shares, but only the Class B shares are available to traders and investors.

What Is Nike?

Nike, Inc. is a multinational corporation specialising in the design, marketing, and sale of athletic footwear, clothing, equipment, and related accessories. Although primarily intended for sports and exercise, Nike's merchandise has become a popular choice among consumers for casual outings and lifestyles.

The corporate headquarters of the company is located in close proximity to Beaverton, Oregon. Its commercial operations extend across a total of six different geographical regions: mainly the Americas (North and Latin America), but also Europe, the Middle East and Africa combined, Greater China, and the Asia Pacific region.

NIKE’s Business Segments

Nike operates through three divisions. In terms of revenue, the Nike Brand comes first, followed by Nike Converse and Nike Corporate.

Nike Brand: This division of Nike Inc. designs, produces, and sells the following under the Nike brand name:

• Footwear: This represents the bulk of the company’s earnings, exceeding $30 billion in 2023.
• Sports Apparel: This represents the company's second-largest earnings, exceeding $13.5 billion in 2023.
• Equipment: This includes the sale of bags, socks, sports balls, eyewear, etc., generating the company’s third-largest earnings exceeding $2.35 billion in 2023.

Nike Converse: As a subsidiary of Nike, Converse Inc. produces and designs casual footwear, clothing, and complementary goods of several trademarks including All-Star, Chuck Taylor and Jack Purcell. The company generates revenue through the licensing and sale of these products.

Nike Corporate: The revenue from this segment is principally derived from hedging forex rates associated with income generated by Nike's core operating units.

NIKE’s History and Key Developments

• In 1964, Phil Knight and Bill Bowerman founded Nike Inc., initially called Blue Ribbon Sports, in a joint venture with Japanese shoe manufacturer Onitsuka Tiger (now Asics).
• Blue Ribbon Sports cut ties with Onitsuka Tiger in 1971 and rebranded as Nike Inc., named after the Greek goddess of victory. The iconic swoosh logo was also created in the same year for $35.
• Nike signed its first athlete, Romanian tennis player Ilie Năstase in 1972.
• Nike went public in 1980 and completed its initial public offering (IPO) with a price of 18 cents a share.
• Nike signed Michael Jordan in 1984, launching the ‘Air Jordan’ series.
• Nike became the official supplier of NFL apparel in 2012 and NBA apparel in 2015.
• In 2019, Nike stopped selling its products on Amazon (AMZN) to reduce counterfeit and enhance direct sales. Despite this, the company’s overall sales declined.
• The COVID-19 pandemic led to a 5% decrease in Nike's sales in China in 2020, the first drop the company had experienced in six years. On the other hand, total online sales increased from $3.8 billion in 2019 to $5.5 billion in 2020.

Nike’s Mergers and Acquisitions

Nike diversified its offerings and expanded its reach during the late 1990s and early 2000s through strategic acquisitions.
Among its notable purchases were Converse for $305 million, Hurley International, Celect, and TraceMe. At the same time, Nike streamlined its portfolio by divesting from sports apparel manufacturers Umbro and Starter.

Nike Stock Market Performance

Nike went public in Dec 1980 with a price of $23 per share. The company has experienced 7 stock splits and significant volatility since going public on the New York Stock Exchange (NYSE). Its stock declined to an all-time low of $0.10 on 31 Oct 1984 and rose to an all-time high of $179.10 on 5 November 2021.

In 2024, Nike Inc. had a market capitalisation of $123.70 billion, outstanding shares of 1.2 billion, and a public float of 1.18 billion. The company’s P/E ratio of 22.34 is notably higher than the industry average of approximately 19.00, reflecting investors' willingness to pay a premium for Nike's earnings.

Nike Market Size and Competitors

As of 2023, the market size for sports clothing and footwear was valued at $485.3 billion, with projections indicating growth to $994.5 billion by 2030, with an expected CAGR (Compound Annual Growth Rate) of 12.82%.

As of 2024, Nike continues to dominate the global athletic footwear and apparel industry, competing with notable brands such as Adidas (ADS.DE), Puma (PUM.DE), Under Armour (UAA), and Skechers (SKX).
Based on current market analysis, Nike's estimated market share in the footwear segment is approximately 30% and 24% in the apparel segment.

Factors Affecting Nike Stock Performance

• Financial Performance: Nike's quarterly earnings report serves as a financial barometer for the company, influencing investor sentiment. Positive reports typically boost stock purchase interest, while negative figures can influence short selling.
• Global Trade Environment: Nike’s global operations, including its manufacturing and retail locations, make the company vulnerable to fluctuations in tariffs and changes in trade agreements across different regions.
• Industry Competition: The competitive landscape in the athletic footwear and apparel market is intensifying, with rivals like Adidas and Puma also vying for larger market dominance. Nike's entry into the fitness technology market also positions it in direct competition with tech giants like Apple (AAPL).
• Innovation and Market Trends: The fast-paced nature of the apparel industry requires constant innovation. Nike's history of successful product launches, such as the Air Jordan line, highlights the significant impact that innovative new releases can have on its stock performance.
• Regulatory and Tax Landscape: Nike often faces legislative and taxation challenges, including the persistent threat of counterfeit products.

How to Trade Nike Inc. Stock

Nike Inc. has two classes of shares. Nike Class A shares are mostly owned by the company executives and aren't available on the open market, while Nike Class B shares are available to all investors.

‘NKE’ is the ticker symbol used to represent Nike Inc. Class B shares on the New York Stock Exchange. Nike Class B shares CFDs can also be traded online via CFD trading platforms such as Plus500.

Traders can gain exposure to Nike stock price movement without owning the actual shares by trading contracts for differences via a CFD trading account.

Traders can open buy or sell positions on Nike shares to profit or lose from its rising and falling prices. The profit or loss is determined by the difference between the opening and closing CFD prices. Note that CFDs are leveraged products. As such, both gains and losses get amplified.

Trading Hours for Nike (NKE) Shares CFDs

On the Plus500 CFD trading platform, traders can monitor the real-time price movements of Nike (NKE) shares and trade from Monday at 3:30 PM CET to Friday at 10:00 PM CET. Please note that trading platform hours may vary depending on the individual operator.

Steps to Buy and Sell Nike Shares CFDs with Plus500

To trade Nike Inc. share CFD with Plus500, follow these steps:

• Create a trading account with Plus500, either a real or demo account.
• Use the stock ticker symbol ‘NKE’ to find Nike on the platform.
• Conduct technical analysis and fundamental analysis of Nike stock.
• Specify the number of shares and the market orders, such as close-at-loss and close-at-profit order.
• Place a buy or sell order for Nike CFD.
• Monitor and track the performance of your trade.

Conclusion

Nike Inc., a global leader in athletic footwear, apparel, and equipment, is a prominent figure in the sports and fashion industries. When considering trading opportunities in Nike share CFDs, traders should closely monitor Nike’s earnings report, industry news and insights, and company-specific developments. Factors such as consumer spending patterns, changes in trade policies, and the competitive landscape can significantly impact Nike's financial performance.

If you want to buy and sell Nike Inc. shares, you can check out Nike share CFDs at Plus500.