strategic-management

EXHIBIT 5 Nike’s Income Before Taxes by Region
CASE 27 • NIKE, INC. — 2010 265
FY09 vs. FY08 vs.
Fiscal 2009 Fiscal 2008 FY08 Fiscal 2007 FY07
(in millions)
U.S. Region $ 1,337.0 $ 1,402.0 -5% $ 1,386.0 1%
EMEA Region 1,316.0 1,281.0 3% 1,050.0 22%
Asia Pacific Region 853.4 694.2 23% 515.4 35%
Americas Region 274.1 242.3 13% 199.3 22%
Other (196.7) 364.9 -154% 299.7 22%
Corporate Expense (1,629.) (1,482.) -10% (1,250.) -19%
Total Pre-tax Income $ 1,956. $ 2,502. -22% $ 2,199. 14%
Source: Nike’s 2009 Form 10K.
EXHIBIT 6 Nike’s Revenues from Subsidiaries
FY09 vs. FY08 vs.
Fiscal 2009 Fiscal 2008 FY08 Fiscal 2007 FY07
(in millions)
Revenues
Converse $ 915.3 $ 729.0 26% $ 563.8 29%
Nike Golf 648.3 725.2 -11% 646.3 12%
Cole Haan 471.6 496.2 -5% 468.6 6%
Hurley 202.9 171.1 19% 150.6 14%
Umbro 174.0 53.9 223% — —
Bauer — 201.9 -100% 166.1 22%
Exeter — 35.1 -100% 67.7 -48%
Other
Total $2,412.10 $2,412.4 $2,063.10
Nike Products
Nike designs, markets, and sells products in three main categories: footwear, apparel,
and equipment. In footwear, Nike sells products that are designed primarily for athletic
usage, although a significant percentage of Nike customers wear them for leisure or as
a fashion accessory. Nike places a great deal of emphasis on the design of the footwear
as well as high-quality construction. Footwear designed for running, training, basketball,
soccer, and urban wear are among the top-selling categories for the company. In
fiscal 2009, footwear accounted for 69.5 percent of Nike’s total U.S. sales, as indicated
in Exhibit 7.
Nike’s sports-related apparel is designed to complement the company’s athletic
footwear products, and it is often sold through the same location and/or distribution channel.
Typical apparel products include shirts with licensed college or professional team
logos, athletic bags and accessories, running shorts, and baseball caps, all emblazoned
with the ubiquitous Nike “swoosh.” Apparel accounted for 25.4 percent of Nike U.S. sales
in fiscal 2009, as indicated in Exhibit 7.
Sports equipment rounds out the Nike portfolio at 24.5 percent of U.S. sales. Sports
equipment, typically sold under the Nike brand name, includes items such as bags, socks,
sports balls, eyewear, golf clubs, and bats and gloves.