Nike 2009 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2009 Nike annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 105

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105

Selected Quarterly Financial Data
1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
2009 2008 2009 2008 2009 2008 2009 2008
(Unaudited)
(In millions, except per share data)
Revenues ...................................... $5,432.2 $4,655.1 $4,590.1 $4,339.5 $4,440.8 $4,544.4 $4,713.0 $5,088.0
Gross margin ................................... 2,562.1 2,087.0 2,050.0 1,921.1 1,948.5 2,047.9 2,043.8 2,331.4
Gross margin % ................................. 47.2% 44.8% 44.7% 44.3% 43.9% 45.1% 43.4% 45.8%
Restructuring charges ............................——————195.0 —
Goodwill impairment ............................————199.3———
Intangible and other asset impairment ...............————202.0———
Net income .................................... 510.5 569.7 391.0 359.4 243.8 463.8 341.4 490.5
Basic earnings per common share ................... 1.05 1.14 0.81 0.72 0.50 0.94 0.70 1.00
Diluted earnings per common share ................. 1.03 1.12 0.80 0.71 0.50 0.92 0.70 0.98
Weighted average common shares outstanding ........ 487.2 499.4 483.7 497.6 484.0 493.9 484.8 491.4
Diluted weighted average common shares outstanding . . 494.9 507.3 489.8 506.2 488.1 502.5 489.4 500.1
Cash dividends declared per common share ........... 0.23 0.185 0.25 0.23 0.25 0.23 0.25 0.23
Price range of common stock
High........................................ 70.28 60.35 68.00 66.57 57.33 67.93 57.14 70.60
Low ........................................ 54.64 51.87 42.68 54.15 40.08 51.50 38.24 56.70
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Overview
NIKE designs, develops and markets high quality footwear, apparel, equipment and accessory products
worldwide. We are the largest seller of athletic footwear and apparel in the world and sell our products primarily
through a combination of retail accounts, NIKE-owned retail, including stores and e-commerce, independent
distributors, franchisees and licensees worldwide. Our goal is to deliver value to our shareholders by building a
profitable global portfolio of branded footwear, apparel, equipment and accessories businesses. Our strategy is to
achieve long-term revenue growth by creating innovative, “must have” products; building deep personal
consumer connections with our brands; and delivering compelling retail presentation and experiences.
We strive to convert revenue growth to shareholder value by driving operating excellence in several key
areas:
• Making our supply chain a competitive advantage, through operational discipline
• Reducing product costs through a continued focus on lean manufacturing and product design that
strives to eliminate waste
• Improving selling and administrative expense productivity by focusing on investments that drive
economic returns in the form of incremental revenue and gross margin, and leveraging existing
infrastructure across our portfolio of brands to eliminate duplicative costs
• Improving working capital efficiency
• Deploying capital effectively to create value for our shareholders
Through execution of this strategy, our long-term financial goal is to achieve:
• High single-digit revenue growth
• Mid-teens earnings per share growth
• Increased return on invested capital and accelerated cash flows, and
• Consistent results through effective management of our diversified portfolio of businesses
22