NKE · CIK 320187
What NIKE, Inc. told the SEC could break it.
Almost everything NIKE flagged traces back to a concentrated, Southeast-Asia-heavy contract-manufacturing base. In fiscal 2025 factories in Vietnam, Indonesia and China made about 51%, 28% and 17% of its footwear — with four contract manufacturers together about 59% — while apparel leaned on Vietnam, China and Cambodia, its top five contract manufacturers making roughly 51%. That geography ties its costs and supply to those countries' conditions and to U.S. and foreign trade policy: tariffs, import duties, quotas, anti-dumping and safeguard measures have already affected demand and costs and could be expanded. It also notes concentrated control — the founder family's Swoosh, LLC beneficially owned about 78% of its Class A common stock as of June 30, 2025.
4 self-disclosed vulnerabilities, pulled from its own filings, each in the company’s words, with the source. This is the risk register almost nobody reads.
In its own words
What could break it.
Supplier concentration
- footwear contract-manufacturing concentration — Vietnam 51%/Indonesia 28%/China 17%; 4 CMs each >10% (~59% aggregate)high
NIKE Brand footwear is made by 15 contract manufacturers across 11 countries, with factories in Vietnam, Indonesia and China producing ~51%, 28% and 17% respectively; four footwear contract manufacturers each exceeded 10% of production and together ~59%, and the largest single footwear factory was ~11% — heavy supplier and country concentration.
“For fiscal 2025, factories in Vietnam, Indonesia and China manufactured approximately 51%, 28% and 17% of total NIKE Brand footwear, respectively. For fiscal 2025, four footwear contract manufacturers each accounted for greater than 10% of footwear production and in the aggregate accounted for approximately 59% of NIKE Brand footwear production.”
- apparel contract-manufacturing concentration — Vietnam 31%/China 15%/Cambodia 15%; top-5 CMs ~51%high
NIKE Brand apparel is made by 67 contract manufacturers across 34 countries, with Vietnam, China and Cambodia producing ~31%, 15% and 15% respectively; two apparel contract manufacturers each exceeded 10% of production and the top-five together ~51% — concentrated apparel sourcing exposed to those countries' conditions and trade policy.
“For fiscal 2025, factories in Vietnam, China and Cambodia manufactured approximately 31%, 15% and 15% ... of total NIKE Brand apparel, respectively... two apparel contract manufacturers accounted for more than 10% of apparel production, and the top five contract manufacturers in the aggregate accounted for approximately 51% of NIKE Brand apparel production.”
Key person
- Swoosh, LLC founder-family control — ~78% of Class A common stocklow
As of June 30, 2025, Swoosh, LLC (the founder family's entity) beneficially owned ~78% of NIKE's Class A common stock, giving it concentrated voting control; a sale of a large number of its shares could also depress NIKE's common-stock market price.
“As of June 30, 2025, Swoosh, LLC beneficially owned approximately 78% of our Class A Common Stock.”
SEC filing →As of 2025
Regulatory & policy
- tariffs/trade-policy + import duties/quotas/anti-dumping/safeguard measures on imported footwear & apparellow
NIKE's products and supply sources are highly exposed to changes in U.S./foreign trade policy — tariffs, import duties, anti-dumping measures, quotas, safeguard measures and economic sanctions; such changes have adversely impacted and may continue to impact demand and costs, and any country may impose new quotas/duties/tariffs on its imports.
“many of our imported products are subject to duties, tariffs or quotas that affect the cost and quantity of various types of goods imported into the United States and other countries. Any country in which our products are produced or sold may eliminate, adjust or impose new quotas, duties, tariffs, safeguard measures, anti-dumping duties”
The hidden graph
Who it depends on, and who depends on it.
Relationships surfaced from filings, including ones disclosed by the other side, which is how the non-obvious ones come to light.
Its customers
“Nike accounted for approximately 24% of Net Sales in Fiscal 2025, Skechers accounted for approximately 13%, and Crocs accounted for approximately 9%.”
Cited →
Its suppliers
Sojitz Corporation of America (Sojitz Corporation)
“Since 1972, Sojitz Corporation of America ("Sojitz America"), a large Japanese trading company and the sole owner of our redeemable p[referred stock]”
Cited →
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