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Nike's business is on fire

Sep 20, 2015, 19:15 IST

REUTERS/Lucy Nicholson

Nike is continuing to dominate.

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This week, the company held its annual shareholders meeting and announced revenue grew 10% in the most recent fiscal year to $30.6 billion.

Nike does business in 190 countries around the world.

So what's the brand's secret to success?

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Nike has signed some huge endorsement deals that are paying off.

The company signed this year's Heisman Trophy winner, Marcus Mariota, who made a successful NFL debut on Sunday with the Tennessee Titans.

His debut makes him the only quarterback in NFL history to throw four touchdowns in a half during a player debut. This kind of performance and publicity is exactly what Nike needs to help drive sales and revenues.

The company is also pouring more money into advanced footwear development.

For instance, Nike's Flyknit shoes have been wildly successful.

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The Flyknit material, which debuted two years ago, is lightweight, minimalist, and fits like socks.

Cliff McBride/Getty

Nike uses "automated, high-tech knitting [technology] to 'weave' the shoe's upper" half into one piece, instead of several pieces that are stitched together, according to a recent research note by Deutsche Bank.

While the popularity of yoga pants and sneakers is often cited as a fashion trend, Morgan Stanley analysts believe that shoppers are hooked on casual comfort.

The analysts believe that shoppers will continue to choose this kind of apparel over denim.

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This bodes well for Nike, which just opened its first store for women.

As this trend continues, the company could continue to expand assortments - and rake in profits.

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