NIKE Inc. (NKE, Financial) filed Annual Report for the period ended 2010-05-31.
Nike Inc. has a market cap of $33.92 billion; its shares were traded at around $69.84 with a P/E ratio of 17.9 and P/S ratio of 1.8. The dividend yield of Nike Inc. stocks is 1.6%. Nike Inc. had an annual average earning growth of 14.1% over the past 10 years. GuruFocus rated Nike Inc. the business predictability rank of 4.5-star.NKE is in the portfolios of Warren Buffett of Berkshire Hathaway, John Hussman of Hussman Economtrics Advisors, Inc., Chase Coleman of TIGER GLOBAL MANAGEMENT LLC, Jeremy Grantham of GMO LLC, Jeff Auxier of Auxier Focus Fund, Steven Cohen of SAC Capital Advisors, Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, Tom Gayner of Markel Gayner Asset Management Corp, Paul Tudor Jones of The Tudor Group, Stanley Druckenmiller of Duquesne Capital Management, LLC, John Buckingham of Al Frank Asset Management, Inc., RS Investment Management, George Soros of Soros Fund Management LLC, Dodge & Cox.
period at a fixed price. In fiscal 2010 and 2009, 89% of our U.S. wholesale footwear shipments (excluding our Other Businesses) were made under the futures program, compared to 90% in fiscal 2008. In fiscal 2010, 62% of our U.S. wholesale apparel shipments (excluding our Other Businesses) were made under the futures program, compared to 60% in fiscal 2009 and 62% in fiscal 2008.
In fiscal 2010 and 2009, non-U.S. sales (including non-U.S. sales of our Other Businesses) accounted for 58% of total revenues, compared to 57% in fiscal 2008. We sell our products to retail accounts, through NIKE-owned retail stores, and through a mix of independent distributors and licensees around the world. We estimate that we sell to more than 24,000 retail accounts outside the United States, excluding sales by independent distributors and licensees. We operate 14 distribution centers outside of the United States. In many countries and regions, including Canada, Asia, some Latin American countries, and Europe, we have a futures ordering program for retailers similar to the United States futures program described above. During fiscal 2010, NIKEs three largest customers outside of the U.S. accounted for approximately 8% of total non-U.S. sales.
Virtually all of our footwear is produced by factories we contract with outside of the United States. In fiscal 2010, contract factories in Vietnam, China, Indonesia, Thailand, and India manufactured approximately 37%, 34%, 23%, 2% and 1% of total NIKE Brand footwear, respectively. We also have manufacturing agreements with independent factories in Argentina, Brazil, India, and Mexico to manufacture footwear for sale primarily within those countries. The largest single footwear factory that we have contracted with accounted for approximately 5% of total fiscal 2010 footwear production.
In 2005, at the request of the European domestic footwear industry, the European Commission (EC) initiated investigations into leather footwear imported from China and Vietnam. Together with other companies in our industry, we took the position that Special Technology Athletic Footwear (STAF) (i) should not be within the scope of the investigation, and (ii) does not meet the legal requirements of injury and price in an anti-dumping investigation. Our arguments were successful and the EU agreed in October 2006 on definitive duties of 16.5% for China and 10% for Vietnam for non-STAF leather footwear, but excluded STAF from the final measures. Prior to the scheduled expiration in October 2008 of the measures imposed on the non-STAF footwear, the domestic industry requested and the EC agreed to review a petition to extend these restrictions on non-STAF leather footwear. In December 2009, following a review of the ongoing restrictions, EU member states voted to extend the measures for an additional 15 months, until March 31, 2011. We expect that a decision by the EC on whether to initiate a review on these measures for a second time will take place before the end of calendar 2010.
Read the The complete Report
Nike Inc. has a market cap of $33.92 billion; its shares were traded at around $69.84 with a P/E ratio of 17.9 and P/S ratio of 1.8. The dividend yield of Nike Inc. stocks is 1.6%. Nike Inc. had an annual average earning growth of 14.1% over the past 10 years. GuruFocus rated Nike Inc. the business predictability rank of 4.5-star.NKE is in the portfolios of Warren Buffett of Berkshire Hathaway, John Hussman of Hussman Economtrics Advisors, Inc., Chase Coleman of TIGER GLOBAL MANAGEMENT LLC, Jeremy Grantham of GMO LLC, Jeff Auxier of Auxier Focus Fund, Steven Cohen of SAC Capital Advisors, Ken Heebner of CAPITAL GROWTH MANAGEMENT LP, Tom Gayner of Markel Gayner Asset Management Corp, Paul Tudor Jones of The Tudor Group, Stanley Druckenmiller of Duquesne Capital Management, LLC, John Buckingham of Al Frank Asset Management, Inc., RS Investment Management, George Soros of Soros Fund Management LLC, Dodge & Cox.
Highlight of Business Operations:
In fiscal 2010 and 2009, sales in the United States including U.S. sales of our Other Businesses accounted for approximately 42% of total revenues, compared to 43% in fiscal 2008. For fiscal 2010 and 2009, our Other Businesses were primarily comprised of Cole Haan, Converse, Hurley, NIKE Golf and Umbro (which was acquired on March 3, 2008). For fiscal 2008, our Other Businesses were primarily comprised of Cole Haan, Converse, Exeter (whose primary business was the Starter brand business which was sold on December 17, 2007), Hurley, NIKE Bauer Hockey (which was sold on April 17, 2008), NIKE Golf and Umbro. We estimate that we sell to more than 23,000 retail accounts in the United States. The NIKE Brand domestic retail account base includes a mix of footwear stores, sporting goods stores, athletic specialty stores, department stores, skate, tennis and golf shops, and other retail accounts. During fiscal 2010, our three largest customers accounted for approximately 24% of sales in the United States.period at a fixed price. In fiscal 2010 and 2009, 89% of our U.S. wholesale footwear shipments (excluding our Other Businesses) were made under the futures program, compared to 90% in fiscal 2008. In fiscal 2010, 62% of our U.S. wholesale apparel shipments (excluding our Other Businesses) were made under the futures program, compared to 60% in fiscal 2009 and 62% in fiscal 2008.
In fiscal 2010 and 2009, non-U.S. sales (including non-U.S. sales of our Other Businesses) accounted for 58% of total revenues, compared to 57% in fiscal 2008. We sell our products to retail accounts, through NIKE-owned retail stores, and through a mix of independent distributors and licensees around the world. We estimate that we sell to more than 24,000 retail accounts outside the United States, excluding sales by independent distributors and licensees. We operate 14 distribution centers outside of the United States. In many countries and regions, including Canada, Asia, some Latin American countries, and Europe, we have a futures ordering program for retailers similar to the United States futures program described above. During fiscal 2010, NIKEs three largest customers outside of the U.S. accounted for approximately 8% of total non-U.S. sales.
Virtually all of our footwear is produced by factories we contract with outside of the United States. In fiscal 2010, contract factories in Vietnam, China, Indonesia, Thailand, and India manufactured approximately 37%, 34%, 23%, 2% and 1% of total NIKE Brand footwear, respectively. We also have manufacturing agreements with independent factories in Argentina, Brazil, India, and Mexico to manufacture footwear for sale primarily within those countries. The largest single footwear factory that we have contracted with accounted for approximately 5% of total fiscal 2010 footwear production.
In 2005, at the request of the European domestic footwear industry, the European Commission (EC) initiated investigations into leather footwear imported from China and Vietnam. Together with other companies in our industry, we took the position that Special Technology Athletic Footwear (STAF) (i) should not be within the scope of the investigation, and (ii) does not meet the legal requirements of injury and price in an anti-dumping investigation. Our arguments were successful and the EU agreed in October 2006 on definitive duties of 16.5% for China and 10% for Vietnam for non-STAF leather footwear, but excluded STAF from the final measures. Prior to the scheduled expiration in October 2008 of the measures imposed on the non-STAF footwear, the domestic industry requested and the EC agreed to review a petition to extend these restrictions on non-STAF leather footwear. In December 2009, following a review of the ongoing restrictions, EU member states voted to extend the measures for an additional 15 months, until March 31, 2011. We expect that a decision by the EC on whether to initiate a review on these measures for a second time will take place before the end of calendar 2010.
Read the The complete Report
