2015



CEO Letter to Shareholders



To Our Shareholders,



These days, it’s common to hear a company describe itself as innovative. But at NIKE, innovation is more than something we do – it’s who we are. It’s how we serve the athlete and lead our industry. It’s how we challenge ourselves to get better, year after year. And the business results follow. In the last 10 years, we’ve more than doubled our revenue and nearly tripled our earnings per share. And we’re not planning on slowing down any time soon. Consider that it took NIKE 40 years to reach annual revenues of $20 billion, and just four years more to hit $30 billion. As a company that operates in nearly every country around the world, NIKE continuously rises above the complexities that create uncertainty to drive growth.



And in fiscal year 2015, we demonstrated that kind of momentum yet again:



Revenues grew 10% to $30.6 billion.

Gross margin expanded 120 basis points.

Diluted earnings per share grew 25% to $3.70, despite increasingly strong currency headwinds.

Return on Invested Capital increased to 28.1%.



A YEAR TO CELEBRATE

With financial results like that, it’s easy to focus on celebrating the business – and understandably so. But I like to step back and stay equally focused on how we achieved this success. Our triumphs come because of our passion for sport. We are not just the world’s No. 1 sports brand, we are sport’s biggest fans and we’ve seen some amazing moments this past year. We saw Rory McIlroy win the Open Championship and the PGA Championship. Serena Williams continued her dominance with victories in the U.S. Open, Australian Open, French Open, and just a few weeks ago at Wimbledon for her 21st Grand Slam title. Ohio State won the first-ever College Football Playoff National Championship. FC Barcelona completed another historic "treble." Duke and UConn triumphed in the men’s and women’s NCAA basketball tournaments. Mario Götze booted home the winning goal that ended the men’s World Cup. And Carli Lloyd’s hat-trick in the women’s World Cup final helped Team USA earn its third star.



These moments remind us of the power of sport to excite us and inspire us. At NIKE, we are honored to be part of them. By bringing innovation and passion to our athletes, we created a year’s worth of special moments: The Prefontaine Classic in Eugene, Oregon, where NIKE track & field stars set records in our performance apparel and footwear. The NBA All-Star weekend in New York City and the NIKE World Basketball Festival in Barcelona where NIKE Basketball and Jordan Brand combined forces to redefine what’s possible in the sport. And our Women’s Event, where 27 of the world’s top athletes unveiled new premium performance products. These are just a few of the events that exemplify our ability to create experiences that excite and inspire consumers around the world.



NIKE'S COMPETITIVE ADVANTAGE

At NIKE, no one determines our future but us. We exist to serve the athlete and our success is determined by our ability to inspire and innovate to meet – and often exceed – their expectations. No matter the macro challenges, we have the plans and strategies to rise