Nike Went Public 45 Years Ago. If You'd Put $100 Into Its IPO, Here's How Much You'd Have Today.

Core Insights - Nike has experienced significant growth since its IPO in 1980, with sales increasing from less than $2 million in 1972 to $51.2 billion by 2024, showcasing an average annual growth rate of 85% in sales and nearly 100% in net income during its early years [2][6] - Despite recent challenges, including a decline in revenues and gross margins, Nike is focusing on a "Win Now" initiative aimed at strengthening partnerships and driving long-term growth [7][9] Historical Performance - In 1990, Nike became the world's largest sports footwear and apparel company, achieving a profit increase of 45% and annual revenues of $2.23 billion, while holding a 28% market share in the U.S. [4] - By the fourth quarter of fiscal 2014, Nike's operating revenue reached $7.4 billion, surpassing its total revenue from fiscal 2004 [6] Recent Challenges - Nike has faced stagnating sales due to issues such as direct-to-consumer sales strategies, inventory management problems, and lack of product innovation [7] - In the fourth quarter of fiscal 2025, revenues decreased by 12% year over year, and gross margin fell from 44.7% to 40.3% [8] Current Status and Future Outlook - Nike's shares have declined by 19% year to date, contrasting with the S&P 500's 17% rise, but the company has announced its 24th consecutive annual dividend increase, moving towards Dividend Aristocrat status [10] - With dividends reinvested, an initial investment of $100 at Nike's IPO would have grown to approximately $55,077, demonstrating the long-term value of the brand despite recent headwinds [12]