In our Financial Tracker series, we will bring you update on how the various sporting goods brands are doing thus far. In this article, there are two main segments: (A) Financial analysis and (B) Qualitative analysis.

Many of the companies have released their half yearly update for 2022 and it is a great time to keep tab on the sporting goods industry. We will kick off certainly with the leader of this industry – Nike. Nike has released their financial results for their fiscal year 2022. Nike’s reporting for a fiscal year starts from June to May of the next year, different from many of its competitors.

Financial Analysis

Over the past four quarters, Nike certainly is on its way to recovery with revenue reaching USD12.2 billion for March to May of 2022. This comes after two quarters of lower revenue. Nike is a giant in the sporting goods industry and its sheer size sets it far apart from its rival. Closely following Nike are brands such as Adidas, ASICS, Puma, New Balance, Skechers among others.

For the second quarter of 2022, Adidas and Puma reported their quarterly revenue of USD5.8 billion and USD2.09 billion respectively[1]. For Puma, it is the first time in the company’s history to breakthrough €2 million in quarterly sales (Chart 2 is in USD and there were huge fluctuations in USD to Euro exchange rates over the past one year).  ASICS has reported about USD 523.2 million for the second quarter of 2022, the smallest among the vendors compared.

[1] Based on exchange rate of 1 USD to 0.9573 Euro

Chart 1: Quarterly Revenue Growth Rate
(Source: Respective Companies/Daily Running Co)

Of the three brands, Nike has seen a strong recovery in its latest reporting period with a 12.5% q-o-q growth rate. While Adidas and Puma have seen its recovery earlier in the first quarter of 2022, both have seen a slow-down in the second quarter. However, ASICS remains to see quarter-to-quarter growth momentum, although smaller, in 2022. In terms of the revenue, Nike’s sheer size can be seen clearly in the chart below.

Chart 2: Quarterly Revenue w/ Footwear Revenue
(Source: Respective Companies/ Daily Running Co)

Footwear is integral in each of these companies and makes up about 50% to 65% of total quarterly revenue. Nike hovered around the 60% to 65% range while Adidas hovered around 50% to 57% range. Puma’s footwear segment has reached 50% in the 2nd quarter of 2022. Lastly, ASICS’s footwear segment remained at about 65% to 73% over the past four quarters, the highest among the companies compared.

What’s On The Mind Of The C-suite Executives?

The world has seen many geopolitical and economic events recently even as the COVID-19 pandemic continues to rage on. These events is expected to impact revenue, profit margin, and even business operations for many businesses. The C-suite executives’ view the current geopolitical and business environment can provide us a snapshot of how the industry will move for the remaining of the year.


Nike is confident of the year ahead with their strong product pipeline, normalizing of the inventory supply as well as healthy pull their key markets. However, there some items which Nike has cited as requiring monitoring or concern. These include implications of high inflation on consumer demand and near-term economic growth. With China’s Zero COVID-19 Policy, Nike is cautious about the Greater China market due to uncertainty of lockdowns. The last two items which Nike has cited foreign exchange headwinds as well as increased costs (product and ocean freight).


One of the key item reported by Adidas is its suspension of operations of in Russia. The company cited that the suspension is expected to negatively impact revenue by more than €100 million. Adidas also cited higher supply chain costs in its latest reporting, similar to what Nike has reported. The factor making Adidas lowering its FY2022 guidance is the slower than expected recovery in Greater China. Revenue from Greater China region is about 13% in Adidas’s latest reporting. This is a continuous decline year-on-year for 2 years from 36% in Q2 of 2022, and 20% in Q2 of 2021. Due to the slowdown in Greater Chain, Adidas expects excessive inventories issues until the end of 2022. This can negatively impact the revenue for Adidas.


Puma, Adidas’s close competitor, has reported pressure from higher freight rates, unfavorable geographical and channel mix. The company has cited uncertainty around the world due to COVID-19, crisis in Ukraine, and high inflationary pressure globally. The high inflation could reduce consumer confidence and demand. However, the company has said it will continue to keep Puma’s price competitiveness to increase sales and market share gains. Lastly, ongoing supply chain constraints and price increase for sourcing and freight which puts pressure on the company’s margin.


ASICS cited easing up and recovery from logistics disruption which they expect to improve sales for the year. However, logistical cost has rose more than expected negatively impacted the company’s gross profit ratio. ASICS do not see the Russia and Ukraine situation having huge impact. The company cited concerns due to lockdowns in China which can negatively impact sales.

Summary & Conclusions

I think it is worth taking note of the smaller players in the market and their performance. ASICS is doing well and has increased their sales over the years. In Q2 of 2022, ASICS recorded its highest quarterly revenue and all its segments, except Apparel & Equipment, has reported record high. Similarly, Puma has also broken the €2 million (~USD 2.09 million) in quarterly sales mark and their footwear segment is also at record high with about €1 million (~USD 1.05 million). That said, the sheer market share of the two giants, Nike and Adidas, set a huge distance ahead of the rest of the players. While it is tempting to say that the other players are gaining on them, the momentum is pretty small in relative terms.

At this point, it is unclear how the year will pan out for these companies as inflation, cost pressure, and geopolitical events fog up the future. However, when uncertainty is high it is also when opportunities arise. Perhaps, the smaller players will be able to start chiseling away from the industry leaders their market share in performance running or maybe new entrants will eats into the sneakers & lifestyle segments. It remains to be seen how the second half of 2022 will pan out.

Till then, just keep running.

Disclaimer: There are many more footwear related companies who are not included in this article. We aim to increase the number of companies compared over time. Therefore, please keep looking out as we evolve the Financial Tracker Series.

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