Please ensure Javascript is enabled for purposes of website accessibility

Nike Is the World's Most Valuable Apparel Brand

By Jennifer Saibil - Apr 17, 2020 at 9:36AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The sportswear giant continues to dominate even beyond its niche.

Business valuation consultancy Brand Finance recently released its annual rankings of apparel brands according to brand value, and Nike has retained its top spot with a value of $34.8 billion, a 7% increase over last year.

A strategy that works

Nike (NKE -2.46%) delivered an excellent third quarter report at the end of March just prior to the shutdown in the U.S. caused by the coronavirus. However, the numbers were lower than usual thanks to store closures in China. China is the company's fastest growing market, so those closures put the brakes on high growth, but the recent reopening spells some good fortune for Nike as it will have to absorb losses from store closures in the U.S. and other markets.

Man getting ready on a track.

Image source: Getty Images.

Many other apparel brands will have to deal with decreases or losses, but despite slowing growth, Nike is still on top. 

Outdoing its peers

Nike's value is almost double that of second-place Gucci, which moved up this year with a value of $17.6 billion. Adidas, Nike's biggest competition, slipped to third place with a value of $16.5 billion.

Levi's, the always-cool jeans company, is back in style and is the fastest growing brand on the list with an increase of 38% to $4.1 billion. Valentino and Gap saw the biggest declines on the list, both falling 39%. Rolex is tagged as having the strongest brand value, according to the Brand Strength Index.

The Brand Finance report suggests the retail sector in general could lose up to 20% of its value due to COVID-19. This decrease could affect several industries including restaurants, airlines, apparel, and auto parts, all of which are expected to fall in value.

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Nike. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

NIKE, Inc. Stock Quote
NIKE, Inc.
NKE
$113.16 (-2.46%) $-2.85
The Gap, Inc. Stock Quote
The Gap, Inc.
GPS
$10.10 (-7.08%) $0.77
adidas AG Stock Quote
adidas AG
ADDYY
$82.73 (-2.22%) $-1.88
Levi Strauss & Co. Stock Quote
Levi Strauss & Co.
LEVI
$19.02 (-1.30%) $0.25

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
397%
 
S&P 500 Returns
128%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/19/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.