NIKE, Inc. Annual Report, Year Ended May 31, 2008

NIKE, Inc. reported robust financial performance for the fiscal year ended May 31, 2008, demonstrating significant revenue growth and increased profitability. Revenues climbed 14% to $18.6 billion, driven by strong demand across all geographic regions and product categories, with international sales now representing 57% of total revenue. The company experienced a notable increase in net income, up 26% to $1.9 billion, and diluted earnings per share grew by 28% to $3.74. This growth was supported by improved gross margins, which rose to 45.0% from 43.9% in the prior year, attributed to strategic pricing, better inventory management, and improved hedge rates. Strategically, NIKE continued to invest in growth drivers, including its brand endorsers and major sporting events like the Olympics and European Football Championships, leading to a 120 basis point increase in selling and administrative expenses as a percentage of revenue. The company also made strategic acquisitions, notably Umbro Plc, and divested non-core assets like the Starter and NIKE Bauer Hockey businesses. NIKE remains committed to returning value to shareholders, repurchasing approximately $1.2 billion in stock and increasing its dividend. The company's financial health is strong, with significant cash flow from operations and ample liquidity to fund future growth and initiatives.