Nike (NKE, news, msgs) says fiscal-first-quarter revenue fell 13%, as stock-options costs and heightened marketing and marketing spending near to the planet Cup soccer tournament collectively with other initiatives outpaced income growth.
Shareholders could possibly be excused for questioning no subject whether the shoe-and-apparel giant is getting enough bang for its marketing and marketing bucks.
Tiger Woods obtains an ideal offer much more than $20 million to market Nike's the game of golf division. LeBron James is getting compensated $13 million for getting the court in Nike basketball shoes. Brazil's nationwide football celebration obtains $12 million for actively playing its famed "beautiful game" in nikeid.com soccer shoes.
Nike will commit $476 million this fiscal twelve weeks in trade for endorsements by superstar athletes, element using the company's $1.7 billion marketing spending budget for the year.
The ratio of marketing and marketing spending to finish product sales hasn't budged in 5 years. much more than that time, analysts and sports activities executives have debated the wisdom of Nike's endorsement strategy.
Nike shares are up 90% much more compared to previous 5 years. But traders are disappointed using the stock's 10% decline from its all-time large of $91.70 in dec 2004.
"Four hundred-plus million bucks is normally an enormous amount of income for athlete endorsements alone," says Ben Sturner, president of Leverage sports activities Agency, a producer new York-based sports activities marketing and marketing company. "Brands like New Balance, for example, commit zero bucks on athlete endorsements, and New sense of balance is normally a best 5 company, in conditions of athletic shoes."
Despite the occasional criticism, Nike has achieved an amazing work in scouting athletic talent. Woods has won 5 consecutive licensed the game of golf Association tournaments and twelve majors much more compared to previous decade. James is residing up for the extraordinary hype that accompanied his start from an Akron, Ohio, large college for the No. one choose from the 2003 NBA draft. And Maria Sharapova, who is compensated $6 million a twelve weeks by Nike, claimed her earliest U.S. available tennis name earlier this four weeks placing on a dark Nike tennis dress.
"It's not like back again 5 or 10 many years ago, especially where Nike experienced a complete whole large amount of athletes below endorsement deals that you'd genuinely query why they experienced been spending all those guys," says John Shanley, an analyst at Susquehanna fiscal Group.
Shareholders could possibly be excused for questioning no subject whether the shoe-and-apparel giant is getting enough bang for its marketing and marketing bucks.
Tiger Woods obtains an ideal offer much more than $20 million to market Nike's the game of golf division. LeBron James is getting compensated $13 million for getting the court in Nike basketball shoes. Brazil's nationwide football celebration obtains $12 million for actively playing its famed "beautiful game" in nikeid.com soccer shoes.
Nike will commit $476 million this fiscal twelve weeks in trade for endorsements by superstar athletes, element using the company's $1.7 billion marketing spending budget for the year.
The ratio of marketing and marketing spending to finish product sales hasn't budged in 5 years. much more than that time, analysts and sports activities executives have debated the wisdom of Nike's endorsement strategy.
Nike shares are up 90% much more compared to previous 5 years. But traders are disappointed using the stock's 10% decline from its all-time large of $91.70 in dec 2004.
"Four hundred-plus million bucks is normally an enormous amount of income for athlete endorsements alone," says Ben Sturner, president of Leverage sports activities Agency, a producer new York-based sports activities marketing and marketing company. "Brands like New Balance, for example, commit zero bucks on athlete endorsements, and New sense of balance is normally a best 5 company, in conditions of athletic shoes."
Despite the occasional criticism, Nike has achieved an amazing work in scouting athletic talent. Woods has won 5 consecutive licensed the game of golf Association tournaments and twelve majors much more compared to previous decade. James is residing up for the extraordinary hype that accompanied his start from an Akron, Ohio, large college for the No. one choose from the 2003 NBA draft. And Maria Sharapova, who is compensated $6 million a twelve weeks by Nike, claimed her earliest U.S. available tennis name earlier this four weeks placing on a dark Nike tennis dress.
"It's not like back again 5 or 10 many years ago, especially where Nike experienced a complete whole large amount of athletes below endorsement deals that you'd genuinely query why they experienced been spending all those guys," says John Shanley, an analyst at Susquehanna fiscal Group.
没有评论:
发表评论