4. Nike’s digital business grew 18 percent on a currency-neutral basis globally in the third quarter, driven by the expansion of its NikePlus membership and the success of SNKRS and its other apps. Products. As a result, Converse’s contribution to total revenue has gone up from 3.5% in 2007 to 5% in 2019. Nike’s revenue per store has consistently been much higher than Converse’s. Surprisingly, the founders of Trefis discovered that along with most other people they just did not understand even the seemingly familiar companies around them: Apple, Google, Coca Cola, Walmart, GE, Ford, Gap, and others. Nike's revenue is the ranked 1st among it's top 10 competitors. “The acquisition of Invertex will deepen our bench of digital talent and further our capabilities in computer vision and artificial intelligence as we create the most compelling Nike consumer experience at every touch point,” Nike chief digital officer Adam Sussman said in a statement. First, the Group announced the acquisition of Zodiac, a leading consumer data analytics company based in New York City and Philadelphia.

You may opt-out by. Nike paid $315 million for Converse in 2003 while the brand had sales of around $200 million – implying a P/S multiple of 1.6x.

While being brought under Nike’s fold played a significant role in Converse’s growth, there is no denying the fact that Nike’s deal to acquire Converse was a bargain. Nike Is Now Laying Off 700 — Not 500 — Workers at Oregon HQ, VF Names First-Ever VP of Global Inclusion & Diversity, In the Era of COVID, Why Mission-Driven Shopping Is the Next Big Retail Opportunity, Nike Air Griffey Max 1 'Freshwater' Is Reportedly Returning in 2021, Nike Is Now Laying Off 700 -- Not 500 -- Workers at Oregon HQ, Rebel Wilson's Take On the Athleisure Trend Includes Slick Leggings & Chunky Nikes, All Work – And Now Play: Thorogood Launches Its Infinity FD Outdoor Collection, From ‘Star Wars’ to ‘Frozen,’ the Best Disney Face Masks for Adults to Buy Now, 11 Best-Selling Foot Peel Masks to Keep Your Feet Super Soft, 14 Nail Polish Color Trends You’re About to See Everywhere This Summer, The Best Dior Sneakers and Charms You Can Shop Now, Dior B23 Sneaker in Gradient Blue Dior Oblique Canvas $990, All the Brands and Retailers Helping to Get Out the Vote in November, The Best Shoe Organizers to Store Your Favorite Footwear, Here Are the Most In-Demand Jobs This Holiday Season, The Heart and Sole of the Footwear Industry. See How It’s Powering New Collaboration and What-Ifs For CFOs and Finance Teams| Product, R&D, and Marketing Teams More Trefis Data Like our charts?

This was followed by the acquisition of Invertex, an Israeli IT start-up.
Our crowd-sourcing platform for intelligent product development, ISPO Job Market is the career portal for the sports industry. Stifel’s Duffy said the Invertex acquisition on top of Zodiac is helping further Nike’s goal of bringing more personalization at scale. Acquisition search results. Hong Kong. With the product Scanmate a precise foot mapping should be possible, also in the retail trade. WordPress.com VIP. Here’s what you need to know:-Invertex is the second digital-based company that Nike has acquired in the last month. The aim is to make shopping easier for customers and to identify their consumer behaviour. Although the purchase seemed expensive at that time, it has turned out to be a bargain because of the following reasons: #1 Converse Has Achieved Robust Revenue Growth Over The Years, (Note: We have highlighted trends since 2007, as Nike began reporting Converse’s performance as a separate segment starting that year), #2 Revenue Growth for Converse has exceeded that for Adidas but has been less than for Under Armour, Additional details about revenue growth for competitors Adidas and Urban Outfitters since 2007 is available in our interactive dashboard, #3 Moreover, Converse Has Been Operating At A Higher Margin Than Nike, #4 However, the Revenue Per Store figure for Nike has been higher than that for Converse, Conclusion: Converse Has Been A Bargain Purchase, What’s behind Trefis?

(Photo by Budrul Chukrut/SOPA Images/LightRocket via Getty Images), EY & Citi On The Importance Of Resilience And Innovation, Impact 50: Investors Seeking Profit — And Pushing For Change, Converse’s revenue has increased from around $560 million in 2007 to more than $1.9 billion in 2019 at an average annual rate of 10.7%.

A total of 1 acquisition came from private equity firms.It has also divested 5 assets.. Nike’s largest acquisition to date was in 2007, when it acquired Umbro for $439M.It’s largest disclosed sale occurred in 2012, when it sold Cole Haan to Apax Partners for $570M.Nike has acquired in 7 different US states, and 3 countries. Nike . However, in 2018, Converse’s margin sharply declined to 16.4% due to a steep fall in revenue. Invertex has since released its FeetID system, which includes an in-store unit that 3-D-scans a precise measure of a shopper’s feet and sends it directly to their mobile phone within seconds. However, the brand’s revenue peaked in 2017 at $2 billion. Invertex should now minimize this. Save Search .

Zodiac will accelerate the digital strategy so that the sporting goods manufacturer can serve customers faster and more personally. Apr 9, 2018 . First, the Group announced the acquisition of Zodiac, a leading consumer data analytics company based in New York City and Philadelphia. Nike has big digital plans as it goes direct to consumer, aims to innovate faster and build relationships. Invertex . Invested in digitization: sports equipment manufacturer Nike (symbol image).

"The acquisition of Zodiac demonstrates our commitment to further accelerate Nike's digital transformation and improve our data and analytics capabilities to help consumers worldwide," said Adam Sussman, Nike Vice President and Chief Digital Officer. LeBron James Trolls a New York Knicks Player With ‘I’m King’ Nike LeBron 15s, 7 Best Deals on Men’s and Women’s Sneakers On Nike’s Website Right Now, © 2020 Fairchild Publishing, LLC, a subsidiary of Penske Business Media, LLC.FN and Footwear News are registered trademarks of Fairchild Publishing, LLC.

Converse had annual sales of just over $200 million at the time of acquisition. Nike Inc. is taking a bigger bet on digital technology. To fulfill the plan, the brand said it would accelerate innovation and product creation and move closer to consumers in key cities. Specifically, in Q3 2020's revenue was $10.6B; in Q2 2020, it was $6.3B; in Q1 2020, it was $10.1B; in Q4 2019, Nike… Nike has acquired 10 companies, including 4 in the last 5 years.

Nike's purchase of analytics firm Zodiac highlights focus on customer lifetime value.

All Rights Reserved, This is a BETA experience. On September 4, 2003, Nike acquired Converse for $315 million – two years after the latter filed for bankruptcy. Download here the study results of the Digital Readiness Check. The athletic behemoth announced Monday its acquisition of Tel Aviv, Israel-based Invertex Ltd., which specializes in 3-D foot scanning. They announced the purchase of Zodiac, Inc., a consumer data analytics firm, in late March.These companies lend a hand toward Nike’s recently-introduced Consumer Direct Offense (CDO) which represents both an increased reliance on digital products and a focus on the consumer. ", Nike buys digital companies Zodiac and Invertex.

With this acquisition, Nike continues its strategy of integrating innovative IT companies into its own organization. This was followed by the acquisition of Invertex, an Israeli IT start-up. careers with passion. Converse’s EBIT margin in the last five years has averaged around 21% while Nike’s margin averaged 17%. “Instantly the Invertex’s cognitive match engine guides the shopper to all the shoes in the store, armed with personalized information and reviews to enrich their shopping experience,” he said. Nike expands its commitment to digitization. The steel measurement tool … The company offers digital customer service models based on 3D technologies. Since then, Converse’s sales have declined. As of 2019, Converse’s revenue stood at almost $2 billion – nearly 6 times its historical purchase price. The 10x revenue gain over the years is just one of several key metrics Trefis looked at in an interactive dashboard to conclude that Nike’s acquisition of Converse was unquestioningly a bargain for the footwear and athletic apparel behemoth. Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company's products, that you touch, read, or hear about everyday, impact its stock price.


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