Report on Product Analysis of Nike

Introduction

Nike, the Greek goddess of victory, helped others succeed in times of war. NIKE, the world’s top shoemaker, does more dominating than assisting, to capture more than 20% of the US athletic shoe market. The company designs and sells shoes for a variety of sports, including baseball, cheerleading, golf, volleyball, hiking, tennis, and football. NIKE also sells Cole Haan dress and casual shoes and a line of athletic apparel and equipment. In addition, it operates NIKETOWN shoe and sportswear stores, NIKE factory outlets, and NIKE Women shops. NIKE sells its products throughout the US and in more than 160 other countries. NIKE veteran Mark Parker succeeded Bill Perez, who resigned in 2006, as president and CEO.

Key People

Chairman: Philip H. Knight

President, CEO, and Director: Mark G. Parker

VP and CFO: Donald W. Blair

Contact Information

Phone: 503-671-6453

Fax: 503-671-6300

Financial Highlights

Fiscal Year End:              May

Revenue (2006):             14954.90 M

Revenue Growth (1 yr):   8.80%

Employees (2006):          28,000

Employee Growth (1 yr):  7.70%

Balance Sheet of Nike

(Amounts are in thousands)

PERIOD ENDING                           31-May-06  31-May-05    31-May-04

Assets

Current Assets

Cash and Cash Equivalents       954,200      1,388,100   828,000

Short Term Investments          1,348,800   436,600      400,800

Net Receivables                      2,599,200   2,372,300   2,285,200

Inventory                              2,076,700   1,811,100   1,633,600

Other Current Assets               380,100      343,000      364,400

Total Current Assets                  7,359,000   6,351,100 5,512,000  

Long Term Investments                –               –               –

Property Plant and Equipment        1,657,700   1,605,800   1,586,900

Goodwill                                     130,800      135,400      135,400

Intangible Assets                          405,500      406,100      366,300

Accumulated Amortization             –               –               –

Other Assets                               –               –               –

Deferred Long Term Asset Charges 316,600      295,200      291,000

Total Assets              9,869,600                         7,891,600      8,793,600

Liabilities

Current Liabilities

Accounts Payable                                2,368,000   1,993,000   1,861,100

Short/Current Long Term Debt       255,300      6,200         147,900

Other Current Liabilities                 –               –               –

Total Current Liabilities               2,623,300 1,999,200 2,009,000  

Long Term Debt                           410,700      687,300      682,400

Other Liabilities                            –               –               –

Deferred Long Term Liability Charges              550,100      462,600    418,200

Minority Interest                          –               –               –

Negative Goodwill                        –               –               –

Total Liabilitie                         3,584,100    3,149,100     3,109,600  

Stockholders’ Equity

Misc Stocks Options Warrants        –               –               –

Redeemable Preferred Stock         300            300            300

Preferred Stock                           –               –               –

Common Stock                            2,800         2,800         2,800

Retained Earnings                        4,713,400   4,396,500   3,982,900

Treasury Stock                            –               –               –

Capital Surplus                            1,451,400   1,182,900   887,800

Other Stockholder Equity              117,600      62,000       (91,800)

Total Stockholder Equity            6,285,200   5,644,200      4,781,700 

Net Tangible Assets                  5,748,900   5,102,700      4, 280, 00

Cash Flow Statement of Nike

(All amounts are in thousand)

PERIOD ENDING         31-May-06        31-May-05         31-May-04

Net Income            1,392,000           1,211,600              945,600  

Operating Activities, Cash Flows Provided By or Used In

Depreciation                                      290,900   287,700   310,400

Adjustments to Net Income                 28,200     84,400     66,200

Changes in Accounts Receivables          (85,100)   (93,500)  82,500

Changes in Liabilities                           279,400   112,400   269,100

Changes in Inventories                        (200,300) (103,300) (55,900)

Changes in Other Operating Activities    (37,200)   71,400     (103,500)

Total Cash Flow from Operating Activities

1,667,900   1,570,700   1,514,400

Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures                           (333,700) (257,100) (213,900)

Investments                                      (909,900) (35,300)  (401,700)

Other Cash flows from Investing Activities            (33,000)  (68,000)  (330,900)

Total Cash Flows from Investing Activity

                              (1,276,600)         (360,400)                     (946,500)       

Financing Activities, Cash Flows Provided By or Used In

Dividends Paid                 (290,900)     (236,700)        (179,200)

Sale Purchase of Stock                       (535,800) (329,400) (166,200)

Net Borrowings                                  (24,200)   (90,900)  (53,100)

Other Cash Flows from Financing Activities

Total Cash Flows from Financing Activities

(850,900)   (657,000) (398,500)

Effect of Exchange Rate Changes         25,700     6,800      24,600

Nike Shares

Direct competitor comparison

                                   NKE     ADDYY.PK    Pvt1 Pvt2   Industry

Market Captured:           27.03B  N/A              N/A   N/A     883.02M

Employ­ees:                   28,000  N/A              N/A   2,800  543

Quarterly Revenue Growth:         8.70%          N/A   N/A     N/A        8.80%

Revenue:                      15.95B  N/A              N/A   1.54B  451.89M

Gross Margin:                43.86% N/A              N/A   N/A     41.04%

Operational Margins:       12.58% N/A              N/A   N/A     10.85%

Net Income:                  1.39B    N/A              N/A   N/A     35.93M

Earning Per Share:         2.703    N/A              N/A   N/A     1.52

Intraday performance summary of Nike

Direct Share holders

Holder                             Shares               Reported

HAYES DELBERT J               552,900               16-Jun-05

HOUSER DOUGLAS G          155,374               16-Apr-07

PARKER MARK G                137,554               9-Apr-07

PEREZ WILLIAM D              109,684               28-Dec-05

DENUNZIO RALPH D           78,400                19-Jan-07

Top Institutional Share holders

NET SHARE PURCHASE ACTIVITY

Insider Purchases – Last 6 Months

Shares          Trans

Purchases                                           N/A              0

Sales                                                 5,341,640      36

Net Shares Purchased
(Sold)                                                (5,341,640)   36

Total Insider Shares Held                      20.29M         N/A

% Net Shares Purchased
(Sold)                                                (20.8%)        N/A

Other Share holders of Nike

Shares Transactions of Nike

INSIDER TRANSACTIONS REPORTED  

 Recent Products of Nike

Recent Products of Nike

Recent Products of Nike

Recent Products of Nike

Conclusion:

As I could outline that Nike is the Global Leader Sports Shoe making. Not only that but also they make textiles and apparels. They have a strong hold in US market as well as the global market.