With Nike (NKE) set to report its fourth fiscal quarter results on Thursday, it sits atop the global mountain of footwear and clothing. Nike posted sales of $ 36.4 billion last year, up 6% from the previous year. According to data from Cowen Equity Research, 4 of the 5 best-selling Nike products sell for over $ 130 – and with an average men’s shoe selling for around $ 70, that’s saying something.
Since its inception in 1972, the brand that urges everyone to âJust Do Itâ seems to have a strange 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 is attracting consumers with premium products:
âThe product has to be fresh and it has to be fresh,â he said.
One of Nike’s best-selling models in the women’s and men’s category is the Air VaporMax, which hit the shelves in 2017. The distinguishing feature of the sneaker is the sole, which is made up of a series of pods filled with air.
Unique engineering has paid off, and even with its hefty price tag of $ 190. For Nike, when high-end products are really successful, it can put a halo on the entire company and help boost its business, Sole told Yahoo Finance.
âNike’s number one goal year after year is to create exciting, fresh and innovative cool looking products that people want to buyâ¦ I think as long as they do, they will continue to be successful,â Sole said.
Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at @ReggieWade.