Nike Still ‘Most Valuable’ Apparel Brand Despite Recent Setbacks
The athleticwear giant is still on top, but Adidas and Hermès are gaining traction.
Even with U.S. sales lagging and recent management issues, Nike Inc. is more valuable than any other apparel brand, according to an annual study.
Independent business strategy consultant Brand Finance said Nike topped the list of the world’s most valuable apparel brands, despite a “significant drop” of 12 percent in its brand value to $28 billion over the last year, stemming from challenges in its North American market and now, “challenges connected to inappropriate behavior among executives and managers.”
Nike’s chief executive officer Mark Parker on Thursday briefly addressed last week’s abrupt departure of brand president Trevor Edwards while discussing better-than- expected quarterly results — still showing a continued sales decline in North America offset by major growth elsewhere — admitting the company had become aware of “some behavioral issues inconsistent with Nike’s values of inclusivity, respect and empowerment.” Specifics have not been disclosed and Edwards is set to remain in a consulting position until August.
Brand Finance said in its report that a “failure to effectively address these issues may result in a further decrease of the brand’s strength and value next year,” while noting that rival Adidas, which came in fourth on the list, behind H&M at $19 billion and Zara at 17.5 billion, saw its brand value jump 41 percent to $14.3 billion as it grew rapidly in athletic and casualwear categories.
“The top four brands in apparel are