Nike
Nike, the world’s largest sportswear company, is in growth mode. 2007/8 revenues of $13.5bn were up 13% on the year before while gross margin increased by 16%. As it seeks to incorporate yet higher performance credentials into its products, this mass-market player is pushing harder into the swimwear and soccer areas. The rise of Adidas seems to have acted as a catalyst for Nike which has started linking social networking to its stores and won a series of prizes for new products including the Revolutionary Support Sports Bra, the Considered 2K5 shoe and the Nike+ Air Zoom Moire. Nike is aiming at $23bn revenues by 2011.
Puma
The outcome of the brothers’ split at Adidas and so also based in Herzogenaurach, Puma was, for a long time, a relatively small player in the sportswear sector. However, it gained significant growth and rising profitability in the early part of the decade when its products were increasingly worn by celebrities such as Madonna. Now, with a string of new golf, running and soccer products hitting the market, Puma is a strong player from both the fashion and performance perspectives. It has double digit revenue growth and has had particular recent success at the Rugby World Cup and at the African Cup of Nations where it equipped over half the teams. |