NIKE, Inc. Annual Report, Year Ended May 31, 2005

NIKE, Inc. reported robust financial performance for the fiscal year ended May 31, 2005, with revenues growing 12% to $13.7 billion and net income increasing by 28% to $1.2 billion. This growth was driven by a strong global demand for its athletic footwear and apparel, supported by effective marketing strategies and a focus on product innovation. The company successfully navigated a dynamic market, leveraging its diversified brand portfolio, including subsidiaries like Converse and Cole Haan, to achieve these results. The company's strategy centers on deepening consumer relationships, delivering innovative products, optimizing its supply chain, and accelerating growth. This approach has led to improved gross margins, up 160 basis points to 44.5%, benefiting from favorable currency exchange rates and effective hedging strategies. NIKE also demonstrated strong operational discipline, with selling and administrative expenses growing at a slightly lower rate than revenues, contributing to an increase in earnings per diluted share of 28% to $4.48. The company's financial health is further evidenced by its increased return on invested capital and accelerated cash flows, alongside consistent returns to shareholders through dividends and share repurchases.