Clothing and footwear company Nike Inc. NKE has been a dominant player in its industry since its inception in 1964. Here is an overview of the company’s performance since its IPO.
What happened: Nike was founded as blue ribbon sports in 1964 by University of Oregon track and field coach Bill Bowman and former student Phil Knight.
The company grew rapidly by offering clothing and opening stores in 1966. The company then launched the first Nike shoe in 1972.
Blue Ribbon Sports was renamed Nike Inc in 1978, as it has been known ever since.
The company has achieved many milestones along the way, including signing Michael Jordan to an endorsement agreement and the launch of the Air Jordan shoe. Other endorsements with athletes and brands and acquisitions along the way have made Nike one of the most successful stocks over the past 40+ years.
Related Link: Nike Q3 Earnings Highlights: Revenue and EPS Pace, Digital Sales Growth, and More
Investing $1,000 in the Nike IPO: Nike went public in December 1980 with an offering price of $22.
A $1,000 investment in Nike stock during the IPO could have bought 45.45 shares.
Nike suffered seven stock splits since its IPO with two-for-one splits completed in January 1983, October 1990, October 1995, October 1996, April 2007, December 2012 and December 2015.
Through the stock splits, the number of Nike shares held would have increased from 45.45 shares to 5,817.6 shares.
The same 5,817.6 shares would be worth $786,015.94 today based on a price of $135.11 for Nike shares at the time of writing.
The $1,000 investment would have increased by 78,501% over the past 42 years, representing an average annual gain of $1,915.
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