in Manhattan’s Flatiron building has become a hot spot for the Manhattan running community. And more than 250,000 people visited our NIKE stores in London over the course of the Olympics.

Online we combined more than 70 separate brand sites into a single destination for consumers to shop and connect with the NIKE Brand. That helped us streamline and accelerate the shopping experience, and we integrated social media platforms to connect consumers to NIKE athletes.

The result – our NIKE Brand DTC business grew 23 percent to $4.3 billion, with strong performance from both our brick-and-mortar stores and e-commerce, which grew an impressive 31 percent for the year.

And we continue to work with our retail partners to leverage what we do in DTC. That helps create concepts like the NIKE Yardline store with Champs, the first year-round American football specialty store. It joins other successful partnerships – our House of Hoops stores with Foot Locker, the NIKE Track Club with Finish Line, and the NIKE Field House with Dick’s Sporting Goods.

We’re running a complete offense to elevate retail and transform the marketplace, and it’s working.

ONE BILLION NEW CONSUMERS ON THE WAY

That’s how many more consumers will enter the middle class in the next 10 years. Most of them will be in the BRICS countries – Brazil, Russia, India, China and South Africa.

The Emerging Markets and China are massive opportunities for NIKE. Each market has a unique heritage, culture and commercial environment. At the same time, they all share a universal connection to sport and competition. In China we continue to work with our retail partners to deliver the right product and elevate merchandising and store productivity. We believe this is a crucial competitive advantage as China transitions from a manufacturing-led economy to a consumer-led economy. Our opportunity is to connect with these consumers to help them achieve their potential and celebrate their love of sports.

Brazil is also an economy in rapid transition. With the World Cup coming up in 2014 and the Olympics in 2016, the world is soon going to learn a lot more about life and business in this dynamic economy. While it’s too early to unveil our plans for Brazil, the product and brand experiences we have planned are more ambitious than anything we’ve done before.

ONE MILLION IDEAS TO CHOOSE FROM

That’s about how many opportunities we come across in a year. But we don’t have the time or resources to develop them all. That’s why we are such relentless editors – at every level – brand, marketplace, category and product. We are laser focused on investing in only those ideas and partnerships that align with our values, add to our capabilities, and promise significant sustainable growth potential.

The ideas that excite us most are the ones where we have the potential to innovate. That’s what inspires us as a team and distinguishes us as a company.

Innovation drives everything at NIKE. It gives us new technologies and materials, helps us create iconic products and services that people want, and game-changers they can’t even imagine.

Innovation gets us closer to athletes and consumers. It shatters the