International Financial Management
TABLE OF CONTENTS
EXECUTIVE SUMMARY / PRODUCTS
SALES AND MARKETING
UNITED STATES MARKET AND INTERNATIONAL MARKETS
SELECTED FINANCIAL DATA / FINANCIAL STATEMENTS
OPERATING AND FINANCIAL LEVERAGE
FINANCIAL RATIOS / GRAPHS 2012
RATIO ANALYSIS 2014 / FINANCE SUMMARY
NIKE, Inc. was incorporated in 1968 under the laws of the state of Oregon- USA. A 176 acre facility of 18 buildings as its world headquarters housing 6,000 employees engaging in management, research, design, development, marketing, finance, and administrative functions from nearly all of its divisions. The principal business activity is the design, development and worldwide marketing and selling of high quality footwear, apparel, equipment, and accessory products.
NIKE is the largest seller of athletic footwear and athletic apparel in the world. It sells products to retailors, through NIKE owned retail stores and Internet sales, Direct to Consumer operations, and through a mix of independent distributors and licensees, in over 170 countries in the whole world. Virtually all footwear and apparel products are produced outside the United States, while equipment products are produced both in the United States and abroad.
NIKE’s athletic footwear products are designed for specific athletic use; largely its products are worn for casual or leisure purposes. It has emphasis on high quality construction and innovation in products designed for men, women and children. Running, training, basketball, soccer, sport-inspired casual shoes, and kids’ shoes are currently its top-selling footwear categories and it expects them to continue to lead in product sales in the near future.
NIKE also markets footwear designed for baseball, football, golf, outdoor activities, skateboarding, tennis, volleyball, walking, wrestling, and other athletic and recreational uses.
Its wholly owned subsidiary, Cole Haan, headquartered in New York, designs and distributes dress and casual footwear, apparel and accessories for men and women.
It has wholly owned subsidiary, Converse Inc., headquartered in Massachusetts, which designs, distributes and licenses athletic and casual footwear, apparel and accessories under the Converse, Chuck Taylor, All Star, One Star, Star Chevron and Jack Purcell trademarks.
It also has its wholly owned subsidiary, Hurley International LLC, headquartered in California, designs and distributes a line of action sports and youth lifestyle apparel and accessories under the Hurley trademark.
Lastly, wholly owned subsidiary, Umbro International Limited, headquartered in United Kingdom, designs, distributes and licenses athletic and casual footwear, apparel and equipment, primarily for soccer, under the Umbro trademark.
Sales and marketing
NIKE experienced fluctuations in aggregate Sales volume across the year. Revenues in the first and fourth fiscal quarters have slightly exceeded those in the second and third quarters. However, the mix of product sales may vary considerably as a result of changes in seasonal and geographic demand for particular types of footwear, apparel and equipment.
Because NIKE is a consumer products company, the relative popularity of various sports and fitness activities and changing design trends affect the demand for our products. It must therefore respond to trends and shifts in consumer preferences by adjusting the mix of existing product, developing new products, styles and categories, and influencing sports and fitness preferences through aggressive marketing. Failure to respond in a timely and proper manner could have a material adverse effect on its sales and profitability. This is a continuing risk....
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