Yahoo Finance 4 out 5 top selling Nike products cost more than $130
With Nike (NKE) set to announce fiscal Q4 earnings on Thursday, it sits atop the global footwear and apparel mountain. Last year Nike pulled in an industry-leading $36.4 billion in revenue, up 6% from the previous year. According to data from Cowen Equity Research, 4 out of 5 top selling Nike products retail for more than $130 — and with the average men's shoe retailing for around $70, that's saying something.
Since its creation in 1972, the brand that urges everyone to "Just Do It" seems to have an uncanny ability to be ahead of the curve on which sportswear will resonate with consumers. UBS analyst Jay Sole, who covers Nike, spoke to Yahoo Finance about how the swoosh brand entices consumers with premium-priced products:
"The product has to be fresh, and it has to be cool," he said.
One of Nike's top-selling models in both women's and men's category is the Air VaporMax, which hit shelves in 2017. The sneaker’s signature feature is the sole, which is comprised of a series of air-filled pods.
The unique engineering paid off, and even with its hefty $190 price tag. For Nike, when the products at the high end are really successful, it can put a halo over the entire business and help drive its business, Sole tells Yahoo Finance.
"Nike's number one objective, year in and year out, is to make, exciting fresh, new innovative cool looking products that people want to buy … I think as long as they do that they'll continue to be successful," said Sole.
Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at @ReggieWade.
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