1. Shane Dempster Cara Jacaruso Joseph Nardi Fan Yang Lauren Zhu
NIKE, Inc. (NKE)
Shane Dempster
Cara Jacaruso
Joseph Nardi
Fan Yang
Lauren Zhu

2. Company Profile
NIKE, Inc. NYSE: NKE

3. Industry profile, trends, key indicators
Innovation, technology, marketing, and the sports cycle are important drivers of the global sports apparel and footwear markets.
Global market for sports apparel is nearly twice as large as the footwear market, and totals over $135 billion.
NIKE's strong brand and dominance in athletic footwear serve as a competitive advantage in its aims to capture the underserved women's athletic apparel market.
Unfavorable foreign currency exchange rate movements (particularly devaluation of the Japanese yen) have led to revenue declines in Western Europe, China and Japan.
Sports apparel market consists of activewear (purchased with intent to be used in a sport), as well as lifestyle or casual wear.
Technologically superior performance products attempt to convey the idea of extraordinary ability to the wearer and are the root of the marketing campaigns aimed at lifestyle consumers (which NIKE has in its apparel)

4. Company Profile Business description Key financials ($ millions)
Largest seller of athletic footwear and athletic apparel in the world
Principal business is the design, development, marketing, and selling of athletic footwear, apparel, equipment, accessories and services.
Sells its products through retail accounts, internet websites, independent distributors, and licensees, in virtually all countries around the world.
Top-selling footwear is NIKE Sportswear, Running, Basketball, Football (Soccer), and kids’ shoes.
Revenue: $ 25,313 Sales Growth: 4.91% Net Income Growth: 10.84%
Ownership structure
Stock chart
Class A 20%
Class B 80
Top Class A Holders
Top Class B Holders
Philip H. Knight 75.60%
Vanguard 5.79%
State Street 4.85
Fidelity 4.77
BlackRock 3.82
Capital Research 3.70

5. SWOT Analysis Strengths Weaknesses Opportunities Threats
Robust market position bolstered by strong brand equity
Competent technical innovation in products enhancing Nike's competitive advantage and brand equity
Broad distribution network
World’s leading brand for sports shoes and apparel
Dependence on third-party manufacturers
Limited control over contract manufacturers
Limited range of products
Opportunities
Threats
Association with NFL would consolidate Nike’s leadership position in the US
Growth opportunities in India
Brand reorganization initiative
Growth in global footwear market
Product expansion in areas like more concentration in sunglasses, sportswear etc. which gives high profit
Intense competition
Growing counterfeit goods market
Adaption of new techniques and innovation by other brands
Economic downturns
* Excerpts from COMPANY PROFILE
NIKE, Inc. dated:

6. Analysis Overview Recent News Net Sales Net Income
NIKE is the largest seller of athletic footwear and athletic apparel in the world, and its principal business activity is the design, development and worldwide marketing, and selling of athletic footwear, apparel, equipment, accessories and services.
NIKE sells its products through retail accounts, internet websites, independent distributors, and licensees, in virtually all countries around the world.
Gearing up to enter smart watch sector in early 2014.
Has established itself as one of the top-five most followed brands on Instagram, which is owned by Facebook, to connect with young and wealthy consumers on the site for lifelong sales.
Rebounding steadily since market fell in Jan., and traders are looking for the gains to continue in the next two months.
Sold its Umbro business to Iconix Brand Group for $225 million in Nov. 2012, and its Cole Haan business to Apax Partners for $570 million in Feb. 2013
Net Sales
Net Income
7.0% CAGR
14.0% CAGR

7. Sample Material
Nike (NKE)

8. Business Profile JORDAN BRAND CONVERSE HURLEY Business description
Key Brands
NIKE is the largest seller of athletic footwear and athletic apparel in the world. NIKE, Inc. was incorporated in 1968 under the laws of the state of Oregon. The company’s current CEO is Mark G. Parker.
Business Segments
The Company’s reportable operating segments for the NIKE Brand are:
North America, Western Europe, Central & Eastern Europe, Greater China, Japan, Emerging Markets
The company reports results of operations in the following reportable product lines:
Running, Basketball, Football (Soccer), Men’s Training, Women’s Training, NIKE Sportswear, Action Sports
Operations
110 sales offices and approximately 90 administrative offices worldwide.
750 retail stores worldwide, which consist primarily of factory outlet stores.
Distribution Channels
Products sold through retail accounts, internet websites, independent distributors, and licensees, in virtually all countries around the world.
During fiscal 2013, our three largest customers accounted for approximately 25% of sales in the United States.
JORDAN
BRAND
CONVERSE
HURLEY

9. Historical financial performance
Historical Performance
Fiscal Year July 29, 2013 Breakdown
Sales $25,313MM
Stock Ownership
EBIT $3,272MM*

10. Historical financial performance
Historical Performance
Ownership structure
Institutions 83.28%
Private 16.72%
Top 5 Insider Trades
Top 5 Holders
Mark G. Parker
Douglas G. Houser
Trevor A. Edwards
Donald W. Blair
Charles D. Denson
Vanguard 5.83%
State Street 4.88%
FMR, LLC4.75%
CRGI 3.72%
BNY Mellon3.27%
* Numbers as per S&P Capital IQ
Historical Financial Discussion and Analysis
According to Nike’s 2013 Annual 10K report, Nike historically experiences revenues in the first and fourth fiscal quarters to have slightly exceed those in the second and third quarters. “However, in the mix of product sales, it may vary considerably as a result of changes in seasonal and geographic demand for particular types of footwear, apparel, and equipment.” In 2013, Nike increased their sales of brands such as Converse and Hurley from 42% to 45% in the United States market. Hence, the major things moving the numbers were the selling of more goods to retail and sporting good stores across the United States. During the fiscal year of 2013, the three largest customers of Nike accounted for approximately 25% of sales in the United States. Operating expenses are increasing, especially in the United States market, with the operating overhead for the fiscal year of 2013 being $5,035,000. Ultimately, by selling more items to retail stores and discount sporting good stores, Nike is continuing to increase sales, as shown in the fiscal year of 2013.