With Nike (NKE) which is expected to report its fiscal fourth quarter results on Thursday, it sits atop the global footwear and apparel mountain. Last year, Nike posted revenue of $36.4 billion, up 6% from the previous year. According to data from Cowen Equity Research, 4 of the top 5 selling Nike products sell for over $130 – and with the average men’s shoe retailing at around $70, that’s saying something.
Since its inception in 1972, the brand that drives everyone to “Just Do It” seems to have an uncanny ability to be ahead of the curve that sportswear will resonate with consumers. UBS analyst Jay Sole, who covers Nike, told Yahoo Finance how the swoosh brand appeals to consumers with high-end products:
“The product must be fresh, and it must be fresh,” he said.
One of Nike’s best-selling models in the women’s and men’s category is the Air VaporMax, which was released in 2017. The signature of the sneaker is the sole, which consists of a series of pods filled with ‘air.
The unique engineering paid off, and even with its hefty $190 price tag. For Nike, when high-end products are really successful, it can put a halo on the whole company and help boost its business, Sole told Yahoo Finance.
“Nike’s number one goal, year after year, is to create exciting, fresh, innovative, cool-looking new products that people want to buy…I think as long as they do, they’ll continue to have success,” said Sole.
Reggie Wade is a staff writer for Yahoo Finance. Follow him on Twitter at @ReggieWade.