That’s the power of the Category Offense at work.

WE CREATE OPPORTUNITY BY REMAINING FOCUSED IN VOLATILE TIMES.

Looking ahead, we’ll continue to see uncertainty in the global economy. Commodity and labor costs will continue to fluctuate, and foreign currency exchange pressure will stay with us. We are not immune to these realities. Nobody is. But our potential – and our focus and determination to realize it – remain undiminished.

I also see very important trends that play directly to our strengths. There’s a strong appetite for authentic brands and genuine innovation. Digital connectivity will continue to shrink the world while sustainability strives to save it. And new partnerships continue to advance how products are manufactured and distributed.

In April we published our Sustainable Business Performance Summary. It’s a snapshot of our continuing commitment to becoming a better company in support of a better future. Consumers expect companies to do the right thing for the world. And we are. Sustainability is not something we see as a drag on profitability. It is a source of innovation, competitive advantage and growth for NIKE.

SO WHAT DOES ALL THIS LOOK LIKE?

Our potential at NIKE reminds me of the 2012 Olympic Trials at Hayward Field in Eugene, Oregon. It was forty years ago, in the same stadium at the same event, where NIKE made its national debut. No one beyond the athletes on the track took notice of us. But we saw the tremendous potential in giving athletes the best, most innovative products to help them achieve their goals. And we have been relentlessly focused on that ever since.

This year I was lucky enough to witness Ashton Eaton’s incredible world record performance in the decathlon. Not only did he set world and personal bests in several events, he did it over two days of miserable conditions. When fans and other athletes were trying to avoid the rain, Ashton walked around like it was a sunny summer day – totally focused on performing his best. One of the few rays of sunshine came during the final event, the 1,500M that put him in the record books as the world’s greatest athlete. He raised the bar for himself and the entire sport.

That’s what champions do. We are committed to doing the same.

Thanks,

Mark Parker

President and Chief Executive Officer

NIKE, Inc.



Management’s Discussion and Analysis of Financial Condition and Results of Operations 

NIKE designs, develops, markets and sells high quality footwear, apparel, equipment, accessories and services worldwide. We are the largest seller of athletic footwear and apparel in the world. We sell our products to retail accounts, through NIKE-owned retail stores and internet sales, which we refer to as our “Direct to Consumer” operations, and through a mix of independent distributors, licensees and sales representatives, worldwide. Our goal is to deliver value to our shareholders by building a profitable global portfolio of branded footwear, apparel, equipment, accessories and service 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