Nike (NYSE:NKENike (NYSE: has a name synonymous with sport. The company has a presence in 109 countries. Throughout the years  most leading sports stars have signed lucrative deals with Nike. Therefore, the $109.6 billion (market cap) sportswear brand has been able to leverage their popularity to move more and more inventory. Keeping true to their mantra of “Just do it.”, Nike continues to move forward with great momentum. As a result, Nike’s stock price has enjoyed significant gains over the past 5 years.

Source: Nike stock price data by amigobulls.com

With revenue growing at a compounded annual growth rate of 10% over the last 5 years, Nike’s growth isn’t down to chance. The brand has an insatiable appetite for finding new opportunities in order to bring their wares to new markets and drive newer revenue streams. For instance, Nike recognizes that sales from female consumers could be a lot higher. Therefore, it has put in place plans to go after this market more aggressively in 2016.

Interestingly, Western consumers are paying a lot more attention to their health and weight. This plays very nicely into Nike’s hands because this has boosted demand for sportswear. The growing ‘Athleisure’ trend is another trend which is here to stay and Nike is well-placed to ride this new craze. Additionally, Nike has a huge brand presence and is therefore well placed to increase revenues.

2016 is an Olympic year, and historically, Nike tends to perform well during global sports events. Arguably, this is due to the fact that people get inspired by watching elite athletes, and consequently decide to join a sport; thereby increasing demand for Nike’s wares. Additionally, Nike is releasing a ‘new generation’ of shoes next year in order to encourage people to upgrade. Some of their athletes have already started to wear them- which is a good marketing strategy.