Nike 2005 Annual Report Download - page 4

To our shareholders,
Each year we devote this space to my thoughts about Nike. Each year I wonder
why we do it. There is something artifi cial about the effort. We attempt to
freeze time and talk about a company that is in constant motion. It’s like
trying to sketch Asafa Powell running the 100m.
But that won’t stop me from trying.
So what does Nike’s evolution look like at this moment? Profi table.
Fiscal Year ’05 is a record year for sales and profi tability. Again. We closed the
year with our seventh consecutive quarter of double-digit earnings per share
growth. Footwear revenues are up 11% over last year. Apparel revenues are up
10%. Equipment revenues are up 15%. A dollar invested in Nike stock one year
ago was worth $1.17 at year-end.
Lance gives us a peek at the true nature of
evolution. It isn’t about change for the sake of
change. Evolution is a search for significance.
New and different isn’t enough. New and
better is the way.
Looks like we’re fi nally fi guring out some things.
Like soccer. Ten years ago our boots were dismissed by athletes and retailers.
You don’t get it,” they said. But we knew we could learn. And we knew we
could innovate.
Today Nike is the footwear market-share leader in Europe. This year
we watched FC Barcelona win the Spanish League. Juventus win the Italian
League. PSV win the Dutch League. Arsenal win the FA Cup. Ronaldinho win
FIFA Player of the Year. Thierry Henry win Europe’s Golden Boot Award.
Brasil win the Copa America. All won in Nike Gear.
Next year the World Cup fi nals will be in Berlin. Some people think this will
be ground zero for an epic battle of the brands. Not so. The soccer wars won’t
be won in someone’s backyard. They’ll be won on stadium pitches and brown
dirt patches around the world. I think we get it now.
In Athens we showed that Nike, more than anybody else, “gets” running. Nike
To Our Shareholders
Nike, Inc. Annual Report 2005
“
Philip H. KnightPhilip H. Knight
Chairman of the Board,
Nike, Inc.