strategic-management

264 RANDY HARRIS
outlets in the United States, including 140 Nike factory stores that sell overstock and
closeout merchandise. Nike’s U.S. sales accounted for 43 percent of total company
revenues in fiscal 2008.
Outside the United States, Nike sells to more than 27,000 retail accounts, including
Nike-owned stores and a mix of independent distributors and licensees around the world. The
company has international branch offices and subsidiaries in 52 countries around the world
and operates 336 retail outlets outside the United States. These Nike-owned retail facilities
outside the United States include 184 Nike factory stores, 61 Nike stores, 4 Niketowns,
12 Nike employee-only stores, 74 Cole Haan stores, and 1 Hurley store, as indicated in
Exhibit 3. Nike’s non-U.S. sales accounted for 66 percent of total company revenues in fiscal
2008, up from 62 percent in 2007, as indicated in Exhibit 4. Exhibit 5 reveals Nike’s income
before taxes by region.
Nike has five wholly owned subsidiaries: Cole Haan, Converse, Hurley
International, Nike Golf, and Umbro Ltd. Cole Haan, headquartered in Yarmouth,
Maine, designs and distributes dress and casual footwear under the Cole Haan and
Bragano brand names. Converse, headquartered in Yarmouth, Massachusetts, designs
and distributes athletic and casual footwear under the Converse, Chuck Taylor, and All
Star brand names, among others. Hurley International, based in Costa Mesa, California,
designs and distributes a line of sports apparel for surfing, skating, and snowboarding
under the Hurley trademark. Finally, Umbro Ltd., based in Manchester, England, designs
and distributes athletic and casual footwear, apparel, and equipment for soccer under the
Umbro trademark. Sales from these five subsidiaries was $2.4 billion in fiscal 2008, as
indicated in Exhibit 6.
EXHIBIT 3 Nike’s Retail Outlets Outside the U.S.
International Markets
Non-U.S. Retail Stores Number
Nike factory stores 184
Nike stores 61
Niketowns 4
Nike employee-only stores 12
Cole Haan stores 74
Hurley stores 1
Total 336
Source: Nike’s 2009 Form 10K.
EXHIBIT 4 Nike’s Revenues by Region
FY09 vs. FY08 vs.
Fiscal 2009 Fiscal 2008 FY08 Fiscal 2007 FY07
(in millions)
U.S. Region $ 6,542.9 $ 6,414.5 2% $ 6,131.7 5%
EMEA Region 5,512.2 5,629.2 -2% 4,764.1 18%
Asia Pacific Region 3,322.0 2,887.6 15% 2,295.7 26%
Americas Region 1,284.7 1,164.7 10% 966.7 20%
Total Nike Brand Revenues 16,661.8 16,096.0 4% 14,158.2 14%
Other 2,514.3 2,531.0 -1% 2,167.7 17%
Total Nike, Inc. Revenues $ 19,176.1 $ 18,627.0 3% $ 16,325.9 14%
Source: Nike’s 2009 Form 10K.