Nike 2006 Annual Report Download - page 5

We utilize 20 NIKE sales offices to solicit sales in the United States. We also utilize 10 independent sales
representatives to sell specialty products for golf and outdoor activities. In addition, we sell NIKE brand products
through our internet website, www.niketown.com, and we operate the following retail outlets in the United States:
U.S. Retail Stores Number
NIKE factory stores (which carry primarily overstock and closeout merchandise) ......... 87
NIKE stores (including NIKE Women Stores) ..................................... 14
NIKETOWNs (designed to showcase NIKE products) ............................... 12
NIKE employee-only stores .................................................... 4
Cole Haan stores (including factory and employee stores) ............................ 83
Converse stores (including factory and employee stores) ............................. 9
Hurley stores ............................................................... 3
Total .............................................................. 212
NIKE’s domestic distribution centers for footwear are located in Wilsonville, Oregon, and Memphis,
Tennessee. Apparel and equipment products are shipped from our Memphis, Tennessee, Tigard, Oregon, and
Foothill Ranch, California distribution centers. Cole Haan and NIKE Bauer Hockey products are distributed
primarily from Greenland, New Hampshire, Converse products are shipped from Ontario and Fontana,
California, and Hurley products are shipped from Irvine, California.
International Markets
We sell our products to retail accounts, through NIKE-owned retail stores, and through a mix of
independent distributors and licensees, in over 160 countries around the world. Non-U.S. sales (including
non-U.S. sales of Cole Haan, Converse, Exeter Brands Group, Hurley, NIKE Bauer Hockey and NIKE Golf)
accounted for 53 percent of total revenues in fiscal 2006, compared to 54 percent in fiscal 2005 and 53 percent in
fiscal 2004. We estimate that we sell to more than 27,000 retail accounts outside the United States, excluding
sales by independent distributors and licensees. We operate 21 distribution centers in Europe, Asia, Australia,
Africa and Canada. In many countries and regions, including Canada, Asia, some Latin American countries, and
Europe, we have a futures ordering program for retailers similar to the United States futures program described
above. NIKE’s three largest customers outside of the U.S. accounted for approximately 11 percent of NIKE
brand sales outside the United States excluding sales from NIKE Bauer Hockey and NIKE Golf, and
approximately 10 percent of total non-U.S. sales.
We operate the following retail outlets outside the United States:
Non-U.S. Retail Stores Number
NIKE factory stores .......................................................... 106
NIKE stores and employee-only stores ........................................... 38
NIKETOWNs .............................................................. 2
Cole Haan stores (including factory and employee stores) ............................ 59
Hurley stores ............................................................... 1
Total .............................................................. 206
International branch offices and subsidiaries of NIKE are located in Argentina, Australia, Austria, Belgium,
Brazil, Bulgaria, Canada, Chile, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Germany, Greece,
Hong Kong, Hungary, Indonesia, India, Ireland, Israel, Italy, Japan, Korea, Lebanon, Malaysia, Mexico, New
Zealand, The Netherlands, Norway, People’s Republic of China, The Philippines, Poland, Portugal, Russia,
Singapore, Slovakia, Slovenia, South Africa, Spain, Sri Lanka, Sweden, Switzerland, Taiwan, Thailand, Turkey,
the United Kingdom, Uruguay and Vietnam.
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