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NIKE, Inc. Annual Report, Year Ended May 31, 2007

Filing Date
Filed July 27, 2007
Period End
May 31, 2007
Security
NKE
In the record · 2016–202610-K1110-Q338-K113

NKE filed 11 annual reports (10-K), 33 quarterly reports (10-Q) and 113 current reports (8-K) between 2016 and 2026.

  1. FY2016 annual report10-K · Jul ’16Jul ’16
  2. Material agreement8-K · Aug ’19Aug ’19
  3. Leadership change8-K · Nov ’21Nov ’21
  4. Leadership change8-K · Dec ’25Dec ’25

01—Abstract

Summary

Summary of the 10-K filed July 27, 2007. Cited figures are marked; the original filing is the authoritative source.

NIKE, Inc. demonstrated solid performance in fiscal year 2007, reporting revenue growth of 9% to $16.3 billiona and a 7% increase in net income to $1.5 billion.

Diluted earnings per share also saw a healthy 11% increase to $2.93b. The company's strategy focuses on delivering premium consumer experiences, innovative products, and operational excellence. A notable event impacting reported results was the adoption of SFAS No. 123R for stock-based compensation, which led to a $141.9 million pre-tax charge, alongside the settlement of a Converse arbitration.

Excluding these items, net income grew by 11%c and diluted EPS by 15%, highlighting the underlying strength of the business. The company also benefited from a reduced effective tax rate due to a European tax agreement.

NIKE continued to return capital to shareholders through increased dividends and share repurchases, signaling confidence in its ongoing financial health and future prospects. Geographically, all four major regions and all three product business units contributed to revenue growth, with particular strength noted in the Asia Pacific region, driven by China.

02—Key points

Key Highlights

  1. Revenue grew 9% to $16.3 billion in fiscal year 2007.
  2. Net income increased by 7% to $1.5 billion.
  3. Diluted Earnings Per Share (EPS) rose 11% to $2.93.
  4. All four geographic regions and three product business units contributed to revenue growth.
  5. The company adopted SFAS No. 123R for stock-based compensation, impacting reported expenses.
  6. NIKE returned capital to shareholders through increased dividends and share repurchases.
  7. Foot Locker, Inc. represented approximately 10% of global net sales.

03—Questions

Frequently Asked Questions

  1. What was NIKE's overall financial performance in fiscal year 2007?

    In fiscal year 2007, NIKE reported a 9% increase in revenue to $16.3 billion and a 7% increase in net income to $1.5 billion. Diluted earnings per share rose by 11% to $2.93. Excluding the impact of SFAS No. 123R adoption and the Converse arbitration settlement, the company saw even stronger growth in net income (11%) and diluted EPS (15%).

  2. How did the company's different geographic regions perform?

    All four geographic regions – U.S., EMEA, Asia Pacific, and Americas – contributed to revenue growth in fiscal year 2007. The Asia Pacific region showed particularly strong performance, with China being a key driver of growth. The EMEA region also saw positive contributions, despite some challenging market conditions in the UK and France.

  3. What impact did the adoption of SFAS No. 123R have on the financial results?

    The adoption of SFAS No. 123R, which requires companies to expense stock-based compensation, resulted in a $141.9 million pre-tax charge in fiscal year 2007. This charge impacted reported net income and EPS, but the company provided adjusted figures to show the underlying business performance.

  4. How is NIKE managing its capital and returning value to shareholders?

    NIKE demonstrated a commitment to returning value to shareholders by increasing its quarterly dividend and actively repurchasing shares under its approved repurchase program. Cash flow from operations was robust, supporting these capital allocation activities.

04—Continue

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