NIKE Inc., based near Beaverton, Oregon, is the world’s leading designer, marketer and distributor of authentic athletic footwear, apparel, equipment and accessories for a wide variety of sports and fitness activities. Wholly-owned NIKE Inc. subsidiary brands include Converse, which designs, markets and distributes athletic lifestyle footwear, apparel and accessories; and Hurley, which designs, markets and distributes surf and youth lifestyle footwear, apparel and accessories. For more information, NIKE Inc.’s earnings releases and other financial information are available on the Internet at http://investors.nike.com. Individuals can also visit http://news.nike.com and follow @NIKE.
Special Note Regarding Forward-Looking Statements and Analyst Reports
Our products face intense competition.
Failure to maintain our reputation and brand image could negatively impact our business.
If we are unable to anticipate consumer preferences and develop new products, we may not be able to maintain or increase our revenues and profits.
We rely on technical innovation and high-quality products to compete in the market for our products.
Failure to continue to obtain or maintain high-quality endorsers of our products could harm our business.
General economic factors beyond our control, and changes in the global economic environment, including fluctuations in inflation and currency exchange rates, could result in lower revenues, higher costs and decreased margins and earnings.
Global economic conditions could have a material adverse effect on our business, operating results and financial condition.
Our business is affected by seasonality, which could result in fluctuations in our operating results.
We may be adversely affected by the financial health of our customers.
Failure to accurately forecast consumer demand could lead to excess inventories or inventory shortages, which could result in decreased operating margins, reduced cash flows and harm to our business.
Consolidation of retailers or concentration of retail market share among a few retailers may increase and concentrate our credit risk and impair our ability to sell products.
Our NIKE Direct operations have required and will continue to require a substantial investment and commitment of resources and are subject to numerous risks and uncertainties.
If the technology-based systems that give our consumers the ability to shop with us online do not function effectively, our operating results, as well as our ability to grow our digital commerce business globally, could be materially adversely affected.
Failure to adequately protect or enforce our intellectual property rights could adversely affect our business.
We are subject to data security and privacy risks that could negatively affect our results, operations or reputation.
We are subject to the risk our licensees may not generate expected sales or maintain the value of our brands.
Failure of our contractors or our licensees' contractors to comply with our code of conduct, local laws and other standards could harm our business.
Our international operations involve inherent risks which could result in harm to our business.
We could be subject to changes in tax rates, adoption of new tax laws, additional tax liabilities or increased volatility in our effective tax rate.
Changes to U.S. trade policy, tariff and import/export regulations or our failure to comply with such regulations may have a material adverse effect on our reputation, business, financial condition and results of operations.
If one or more of our counterparty financial institutions default on their obligations to us or fail, we may incur significant losses.
We rely on a concentrated source base of contract manufacturers to supply a significant portion of our footwear products.
Our products are subject to risks associated with overseas sourcing, manufacturing and financing.
Our success depends on our global distribution facilities.
We rely significantly on information technology to operate our business, including our supply chain and retail operations, and any failure, inadequacy or interruption of that technology could harm our ability to effectively operate our business.
The market for prime real estate is competitive.
Extreme weather conditions and natural disasters could negatively impact our operating results and financial condition.
Our financial results may be adversely affected if substantial investments in businesses and operations fail to produce expected returns.
We are subject to a complex array of laws and regulations and litigation and other legal and regulatory proceedings, which could have an adverse effect on our business, financial condition and results of operations.
The success of our business depends, in part, on high-quality employees, including key personnel.
The sale of a large number of shares of common stock by our principal stockholder could depress the market price of our common stock.
Changes in our credit ratings or macroeconomic conditions may affect our liquidity, increasing borrowing costs and limiting our financing options.
If our internal controls are ineffective, our operating results could be adversely affected.
If our estimates or judgments relating to our critical accounting policies prove to be incorrect, our operating results could be adversely affected.
Anti-takeover provisions may impair an acquisition of the Company or reduce the price of our common stock.
We may fail to meet market expectations, which could cause the price of our stock to decline.