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Nike focuses more on action sports

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Friday, October 04, 2013

Nike is putting more effort into its smallest business category, action sports.

Granted, there are plenty of sporting-goods companies that would be satisfied with $495 million a year in wholesale revenue – the total recorded by action sports in the fiscal year that ended May 31, essentially unchanged from the previous year. Action sports accounted for only 2 percent of the $20.8 billion Nike Brand revenue pie. By comparison, Nike basketball accounted for $2.6 billion. (Total Nike revenue, taking everything into account, was $25.3 billion.)

Surfing, skateboarding and snowboarding arguably have had only a single generation of development in the youthful market sports companies crave. By contrast, Nike's bread-and-butter traditional sports of running, basketball, soccer and football have churned through multiple generations of athletes – and created a lot of potential consumers in the process.

Read more at OregonLive.com.

 

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