KY(S)C - Know your Sneaker Company

I believe that being a sneaker-head is not just about owning shoes and throwing names. One should also know something about the makers. So in this blog, I will share some stats on the largest sneaker companies in the world, take this as a Sneaker GK lesson. (Most of the financial data are taken from the respective company's 2016 annual reports)

Nike (US) - Nike needs no introduction to most people. The company is the largest sportswear company in the world with an annual revenue of a little over $34B. The major brands which NIKE owns are Jordan, Converse, and Hurley. I haven't seen Hurley in India but I was a little surprised to know that Converse was actually taken over by Nike in 2003 for about $309M. In terms of revenue break up from brands, Jordan and Converse bring in about $3B and $2B for Nike annually. Nike brand sales by Geography is as follows (Ref: Morning Star Report)- North America - 44% Western Europe - 18% Emerging markets - 12% China - 12%

Japan and Central and Eastern Europe - 14%

After seeing the China figure, I no longer have the right to complain about why China gets its own exclusive Jordan shoes (Eg- Jordan 13 Love and Respect, Jordan 12 Chinese New Year etc).

Adidas (Germany) - In terms of brand recognition Adidas does not fall short of Nike. The company has an annual revenue (2016) of around 19.3B Euro ($22.8B). By revenue, Adidas is the second largest footwear company in the world and is currently the owner of Yeezys brand of sneakers. For those who don't know, Yeezys is a highly coveted sneaker which is a collaboration between Kanye West (rapper) and Adidas. They were launched in India for Rs.24,000 in November 2017 (sold out in 30mins) and abroad they resell for anything between $600-$1000. Reebok, is also owned by Adidas a transaction valued at $3.8B in August 2005.

Geographically Adidas's revenue break up is as follows-

Western Europe - 30% North America - 19% Greater China - 17%

Russia/CIS - 4% Latin America - 10% Japan - 6%

MEAA - 15%

Puma (Germany) - Another very recognizable brand from the world of footwear. Puma was registered on 1st October 1948. The founders of Adidas and Puma were in fact brothers who chose to go their separate ways. Today Puma has as annual revenue of 3.6B Euros ($4.3B). Puma focused on football and track and field during its early days but today has expanded its collaborations in numerous sports like Golf, Motorsports (these shoes are quite famous in India) and general lifestyle shoes. Puma sales by Geography (Annual Report)-

EMEA- 38.2% Americas- 36.9% Asia/Pacific 24.9%

ASICS (Japan) - ASICS is an acronym of the Latin phrase “Anima Sana In Corpore Sano,” which translates as ‘a sound mind in a sound body’. ASICS Ltd. began as Onitsuka Co., Ltd on September 1, 1949 as a manufacturer of basketball shoes. Onitsuka became particularly renowned for the Mexico 66 design, in which the distinctive crossed stripes logo.

In 1977, Onitsuka Tiger merged with two other companies to form ASICS Corporation. ASICS has an annual revenue (2016) of around $3.5B.

Other companies which deserve a mention -

New Balance (US) - Annual Revenue $3.8B

Under Armour (US) - Annual Revenue $4.8B

Vans (US) - Annual Revenue $2.3B

#adidas #nike #asics #puma #shoecompanyfinancials #shoecompanydata #sneakerdata