The financial anatomy of a $ 100 Nike shoe* $5.00 is Nike's profit on a $100 shoe $22 $5 $5 $11 $5 $50 COST TO PRODUCE RETAILER MARGIN $5 - Freight, Insurance, custom duty $5 - Marketing $11- Other expenses and overheads *Based on overall cost of sales as per 2015 Nike income statement. Freight insurance duties are assumptions. ** Taxes are calculated on the gross income, which is 7% of the retail price. $2 - Income taxes** $5 - Net profit or income SOLEREVIEW.COM