WILLIAM McCALL, AP Business Writer
AP Online
08-23-2000
Nike Creates Women's Division
BEAVERTON, Ore. (AP) -- Nike wants more of the roughly $5 billion women's athletic shoe and clothing market and has formed a new division to get it.
Nike co-founder Phil Knight on Tuesday named a 19-year veteran of the Beaverton, Ore.-based company, Clare Hamill, to lead the new women's division, which will field about 1,000 people to develop and market products tailored not only for a wide range of athletes, but plain old outdoor wear.
``We're coming out with wearable products,'' Hamill said. ``You'll know the Nike aesthetic when you walk into the store.''
She said the move is aimed at boosting Nike's share of an expanding women's market and beating traditional competition from Adidas and Reebok International while fending off clothing retailers such as Tommy Hilfiger Corp., Gap Inc. and Polo Ralph Lauren Corp.
Last fiscal year, women's clothing, shoes and equipment brought in $1.55 billion in revenue for Nike -- giving it roughly a 20 percent share of the global market.
Knight called the women's market ``one of our company's top priorities,'' shaped by growing interest in the WNBA and women's soccer, along with the popularity of prominent female Olympians such as Marion Jones.
Hamill said Nike plans to spend two to three times more on marketing and development in the coming year to expand the range of products for female athletes while giving fashion-conscious consumers more choices.
``Many women are up to 6-feet-4 now,'' Hamill said, ``but most companies make products just up to 5-8.''
The announcement came as Nike stock took a dip on the New York Stock Exchange, ending down $4.75 at $42.125 per share, largely due to a report by an analyst who predicted slower U.S. growth in footwear than expected, company officials and other analysts said.
John Shanley, an analyst at First Security Van Kasper in New York, said Nike has less than a third of the women's market in the United States in terms of sales, while the company dominates men's athletic footwear with more than half the market -- up to 55 percent.
Worldwide, he estimated the total market for women's shoes, clothing and equipment at slightly less than $5 billion, while men's was about $5.5 billion.
Hamill joined Nike in 1981 as a technician in the Nike Sports Research Lab. She later held positions as director of marketing in Europe, director of men's apparel merchandising and vice president of global footwear.
Knight named Peter Ruppe to replace Hamill as head of Nike's equipment division. He previously served as vice president of global footwear. The information contained in the AP News report may not be published, broadcast or redistributed without the prior written authority of The Associated Press.
Copyright 2000 The Associated Press All Rights Reserved
AP Online
08-23-2000
Nike Creates Women's Division
BEAVERTON, Ore. (AP) -- Nike wants more of the roughly $5 billion women's athletic shoe and clothing market and has formed a new division to get it.
Nike co-founder Phil Knight on Tuesday named a 19-year veteran of the Beaverton, Ore.-based company, Clare Hamill, to lead the new women's division, which will field about 1,000 people to develop and market products tailored not only for a wide range of athletes, but plain old outdoor wear.
``We're coming out with wearable products,'' Hamill said. ``You'll know the Nike aesthetic when you walk into the store.''
She said the move is aimed at boosting Nike's share of an expanding women's market and beating traditional competition from Adidas and Reebok International while fending off clothing retailers such as Tommy Hilfiger Corp., Gap Inc. and Polo Ralph Lauren Corp.
Last fiscal year, women's clothing, shoes and equipment brought in $1.55 billion in revenue for Nike -- giving it roughly a 20 percent share of the global market.
Knight called the women's market ``one of our company's top priorities,'' shaped by growing interest in the WNBA and women's soccer, along with the popularity of prominent female Olympians such as Marion Jones.
Hamill said Nike plans to spend two to three times more on marketing and development in the coming year to expand the range of products for female athletes while giving fashion-conscious consumers more choices.
``Many women are up to 6-feet-4 now,'' Hamill said, ``but most companies make products just up to 5-8.''
The announcement came as Nike stock took a dip on the New York Stock Exchange, ending down $4.75 at $42.125 per share, largely due to a report by an analyst who predicted slower U.S. growth in footwear than expected, company officials and other analysts said.
John Shanley, an analyst at First Security Van Kasper in New York, said Nike has less than a third of the women's market in the United States in terms of sales, while the company dominates men's athletic footwear with more than half the market -- up to 55 percent.
Worldwide, he estimated the total market for women's shoes, clothing and equipment at slightly less than $5 billion, while men's was about $5.5 billion.
Hamill joined Nike in 1981 as a technician in the Nike Sports Research Lab. She later held positions as director of marketing in Europe, director of men's apparel merchandising and vice president of global footwear.
Knight named Peter Ruppe to replace Hamill as head of Nike's equipment division. He previously served as vice president of global footwear. The information contained in the AP News report may not be published, broadcast or redistributed without the prior written authority of The Associated Press.
Copyright 2000 The Associated Press All Rights Reserved
