(Fortune magazine), and the World Wildlife Fund and others have recognized NIKE for our work on climate change. I’m grateful that we’re being noticed for our contributions, but our work in this area is a journey. There is always more to do.



I’ll point to a $100 million partnership between the NIKE Foundation and Peter and Jennifer Buffett’s NoVo Foundation. Together we are creating an exciting new initiative called the Girl Effect. The premise of the Girl Effect is as simple as it is profound – when we invest in the health, safety and education of an adolescent girl, we create a ripple effect that improves her quality of life and that of everyone around her – her family, her village, her nation and, ultimately, all of us. Global research and experience show that investing in girls and creating the Girl Effect may be the most powerful missing piece to the puzzle of alleviating poverty.



For all we have accomplished this year, we remain humbled by the amazing things

we witnessed in the world of sports – Tiger Woods playing through pain to win the U.S. Open, Paul Pierce leading the Boston Celtics to their first NBA title in more than 20 years, the passion of a historic European Championships, and Rafael Nadal outlasting Roger Federer in the longest and most dramatic final in Wimbledon history.



It is epic moments like these – and the millions of everyday moments created by athletes around the world – that inspire us. Their dreams motivate us to create the most innovative product in sport, and to serve more fully every consumer who shares our passion for performance and excellence. That is our responsibility and our privilege.



As we move through fiscal 2009, now is not the time to be timid. We know that doing business as usual – doing what we’ve done in the past just a little bit better – is not enough. We are committed to the principals that got us here – innovation, consistency, and competitive fire. We’re focused on managing for growth. Where others retract, we reach out. Where some react, we create. We are on the offense, always.



I wouldn’t trade what we have with anybody in any industry.



Mark Parker

President and Chief Executive Officer

NIKE, Inc.



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, and independent distributors, franchisees and licensees in the United States and 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 create long-term revenue growth by creating compelling consumer experiences by creating and delivering innovative, “must have” products; deep personal connections with our brands; and compelling retail presentation.

We strive to convert revenue growth to shareholder value by driving operating excellence in