Nike vs Adidas Overview
The world’s two largest sportswear brands compete globally: Nike dominates through athlete endorsements and premium positioning, while Adidas leverages cultural relevance and European heritage.
| Metric | Nike (NKE) | Adidas (ADDYY) |
|---|---|---|
| Sector | Consumer Apparel | Consumer Apparel |
| Market Cap | $115B | $45B |
| Revenue | $51.4B | $24.5B |
| Net Income | $5.7B | $0.9B |
How Does Nike Make Money?
Nike (NKE) operates in the Consumer Apparel sector with a market cap of $115B. For a full breakdown of Nike’s revenue sources, see the Nike revenue breakdown.
Nike Revenue Breakdown (By Category)
| Segment | FY2024 (May) | FY2023 (May) | YoY Growth |
|---|---|---|---|
| Footwear | $33.4B | $33.1B | +0.9% |
| Apparel | $13.7B | $14.0B | -2.1% |
| Equipment | $2.4B | $2.2B | +9.1% |
| Converse | $2.1B | $2.4B | -12.5% |
| Total Revenue | $51.4B | $51.2B | +0.4% |
Nike Revenue Breakdown (By Geography)
| Region | FY2024 | FY2023 | YoY Growth |
|---|---|---|---|
| North America | $21.4B | $21.6B | -0.9% |
| EMEA | $13.4B | $12.4B | +8.1% |
| Greater China | $7.5B | $7.2B | +4.2% |
| APLA | $6.7B | $6.4B | +4.7% |
How Does Adidas Make Money?
Adidas (ADDYY) operates in the Consumer Apparel sector with a market cap of $45B.
Adidas Revenue Breakdown
| Segment | FY2024 | FY2023 | YoY Growth |
|---|---|---|---|
| Footwear | $14.8B | $12.1B | +22.3% |
| Apparel | $8.5B | $8.2B | +3.7% |
| Accessories | $1.2B | $1.1B | +9.1% |
| Total Revenue | $24.5B | $21.4B | +14.5% |
Nike vs Adidas Profitability
Nike: Yes, Nike is profitable. The company reported net income of $5.7B on total revenue of $51.4B. With an operating margin of 12.8%, Nike demonstrates solid profitability though margins have compressed from promotional activity and inventory management.
Adidas: Yes, Adidas returned to profitability. The company reported net income of $0.9B on total revenue of $24.5B. With an operating margin of 6.5%, Adidas is recovering after the costly Yeezy partnership termination.
Key Financial Metrics Comparison
Nike Key Metrics
- Gross Margin: 44.6% — Premium due to brand power and direct-to-consumer shift.
- Operating Margin: 12.8% — Pressured by promotional activity and inventory.
- Direct-to-Consumer: 44% — Nike Direct growing faster than wholesale.
- Jordan Brand: $6.6B — Massive sub-brand within footwear.
Adidas Key Metrics
- Gross Margin: 50.8% — Higher than Nike, reflecting European pricing.
- Operating Margin: 6.5% — Recovering from Yeezy-related losses.
- Yeezy Impact: -$1.3B — Revenue lost from partnership termination.
- Terrace/Lifestyle Growth: +25% — Samba, Gazelle driving momentum.
Which Company is a Better Investment?
Nike offers scale, brand power, and profitability but faces near-term challenges from inventory and promotional activity. Adidas provides a turnaround opportunity with momentum in lifestyle footwear and lower valuation. Consider brand heat, China exposure, and competitive dynamics with emerging brands. Review the full Nike revenue breakdown for detailed analysis.
Disclaimer: This comparison is for informational purposes only and does not constitute investment advice.