Nike’s $ 11.4 billion quarter – Front Office Sports

Nike reported second-quarter revenue of $ 11.4 billion on Monday, beating analysts’ estimates of $ 11.25 billion.

Of its total turnover, the turnover of the Nike brand represented $ 10.8 billion, with Converse’s revenue increasing 16% to $ 557 million.

Digital sales grew 12% year over year, jumping 40% in North America. Nike’s footwear division recorded $ 6.8 billion In revenue, clothing reached $ 2.6 billion, and equipment reached $ 382 million.

The company’s revenues in China and APLA (Asia-Pacific and Latin America) declined, apparently due to lower inventories caused by plant closures during the pandemic.

The retailer launched a number of initiatives during the quarter.

• He announced “mentalities», A program to help users prioritize their mental health.
• Following the reopening of its subcontractors, a Vietnamese government website said Nike plans to invest more in the production of the country.
• The company unveiled a partnership with Dick’s Sporting Goods, linking the pair’s membership programs and possibly offering in-person workouts.
• Nike has filed a trademark alluding to metaverse sneakers.

And after?

President and CEO John Donahoe said the company is “in a much stronger position today than it was 18 months ago.”

While still facing supply chain issues, Nike has already been busy in the third quarter. Just last month, Nike asked the International Trade Commission to block imports of Adidas shoes for allegedly copying technology from Nike, announced a full review of its media accounts and acquired the producer of NFT RTFKT.

Reebok, bought by Authentic Brands Group in August, will now be sold in thousands of JD Group stores thanks to a new agreement between the two companies.

The non-exclusive deal comes after ABG announced plans to buy Reebok from Adidas for $ 2.46 billion – the acquisition should be finalized in the first quarter of 2022.

JD Group, which owns JD, Finish Line, DTLR, Shoe Palace, Sports Zone, Sprinter and Size ?, will sell Reebok in more than 2,850 stores in North America and Europe.

Authentic Brands Group already has big plans for Reebok.

• ABG CEO, Founder and Chairman Jamie Salter has previously said he expects Reebok to record more than $ 5 billion in global retail sales in 2022, with the goal of achieving $ 10 billion in annual sales in the next five years.
• The company has announced that SPARC Group, a joint entity between Simon Property Group and ABG, will be the official licensee and operating partner of Reebok.
• ABC signed an agreement with Aditya Birla Fashion and Retail Limited earlier this month for exclusive distribution and sales rights for Reebok in India, Maldives, Nepal, Bangladesh, Bhutan and Sri Lanka.

ABG postpones its IPO

Authentic Brands Group was initially planning an IPO this year, but announced last month that it sell private equity stakes to CVC Capital, hedge fund HPS Investment Partners and an existing stakeholder pool instead.

The sale of shares put the company in a $ 12.7 billion Evaluation. Salter said the company will aim for a new IPO date of 2023 or 2024.

Representatives of the Washington football team are pushing to build a new domed stadium in Northern Virginia, according to a Washington Post report.

Team officials have met with state lawmakers, Virginia delegate Lamont Bagby (D-Henrico) confirmed to The Post. But a bill to advance the plan would not be tabled until the next General Assembly session in January.

The proposed dome-shaped stadium would be built in Loudoun or in Prince William County and would include “a large shopping and entertainment complex”, as well as plans for a commercial area surrounding the stadium, including retail and hotels. .

Even if the project is approved, however, the WFT could not budge until its contract at FedEx Field expires in 2027.

Fund a new stadium

The project would probably cost at least $ 2 billion, UNC-Chapel Hill Associate Professor Nels Popp told Front Office Sports.

It’s one of many plans for new stadiums across the NFL over the past few years – which also come with high prices.

• The Buffalo Bills have proposed a new stadium project that will cost around $1.4 billion.
• Los Angeles Chargers and Rams share SoFi Stadium, which opened in 2020 and was very expensive $ 5.5 billion.

In May, Forbes estimated that the WFT is currently worth a total of $ 3.5 billion.

The attempt by the American investor group WAGMI United to foray into the English football arena has been rejected.

Stefan Rupp, President of League Two Bradford City AFC, declined an offer for WAGMI United to buy the team, known as Bantams.

The move comes shortly after a Washington Post report said the group was at “advanced stages” to buy out an unnamed English Football League team.

“A lot has been released publicly since the offer was made,” Rupp said. “That, along with a number of factors which will remain private, led me to this decision.” Rupp added: “The case is closed.”

Led by former ESPN gaming analyst Preston Johnson and investor Eben Smith, WAGMI United includes:

• President of the Philadelphia 76ers Daryl morey
• VaynerX chair Gary Vaynerchuk
• Social media personality Bryce Room

New revenue model

The group intends to use NFTs as basic income generator while leveraging advanced analytics to help manage the team.

The group has no plans to offer fans any titles on a team they could buy, but hope to transfer some intellectual property rights to people who buy their digital collectibles.

They previously said their goal was to reinvest the proceeds in the team to move up into the English Football League system and ultimately achieve the premier league. Now it looks like the squad will have to find another way in England’s top football league.