Report on Product Analysis of Nike
Subject: Business, Organizational Behavior | Topics:

Introduction

Nike, the Greek goddess of victory, helped others succeed in times of war. NIKE, the world’s top shoemaker, does more dominating than assisting, to capture more than 20% of the US athletic shoe market. The company designs and sells shoes for a variety of sports, including baseball, cheerleading, golf, volleyball, hiking, tennis, and football. NIKE also sells Cole Haan dress and casual shoes and a line of athletic apparel and equipment. In addition, it operates NIKETOWN shoe and sportswear stores, NIKE factory outlets, and NIKE Women shops. NIKE sells its products throughout the US and in more than 160 other countries. NIKE veteran Mark Parker succeeded Bill Perez, who resigned in 2006, as president and CEO.

Key People

Chairman: Philip H. Knight

President, CEO, and Director: Mark G. Parker

VP and CFO: Donald W. Blair

Contact Information

Phone: 503-671-6453

Fax: 503-671-6300

Financial Highlights

Fiscal Year End:              May

Revenue (2006):             14954.90 M

Revenue Growth (1 yr):   8.80%

Employees (2006):          28,000

Employee Growth (1 yr):  7.70%

Balance Sheet of Nike

(Amounts are in thousands)

PERIOD ENDING                           31-May-06  31-May-05    31-May-04

Assets

Current Assets

Cash and Cash Equivalents       954,200      1,388,100   828,000

Short Term Investments          1,348,800   436,600      400,800

Net Receivables                      2,599,200   2,372,300   2,285,200

Inventory                              2,076,700   1,811,100   1,633,600

Other Current Assets               380,100      343,000      364,400

Total Current Assets                  7,359,000   6,351,100 5,512,000  

Long Term Investments                –               –               –

Property Plant and Equipment        1,657,700   1,605,800   1,586,900

Goodwill                                     130,800      135,400      135,400

Intangible Assets                          405,500      406,100      366,300

Accumulated Amortization             –               –               –

Other Assets                               –               –               –

Deferred Long Term Asset Charges 316,600      295,200      291,000

Total Assets              9,869,600                         7,891,600      8,793,600

Liabilities

Current Liabilities

Accounts Payable                                2,368,000   1,993,000   1,861,100

Short/Current Long Term Debt       255,300      6,200         147,900

Other Current Liabilities                 –               –               –

Total Current Liabilities               2,623,300 1,999,200 2,009,000  

Long Term Debt                           410,700      687,300      682,400

Other Liabilities                            –               –               –

Deferred Long Term Liability Charges              550,100      462,600    418,200

Minority Interest                          –               –               –

Negative Goodwill                        –               –               –

Total Liabilitie                         3,584,100    3,149,100     3,109,600  

Stockholders’ Equity

Misc Stocks Options Warrants        –               –               –

Redeemable Preferred Stock         300            300            300

Preferred Stock                           –               –               –

Common Stock                            2,800         2,800         2,800

Retained Earnings                        4,713,400   4,396,500   3,982,900

Treasury Stock                            –               –               –

Capital Surplus                            1,451,400   1,182,900   887,800

Other Stockholder Equity              117,600      62,000       (91,800)

Total Stockholder Equity            6,285,200   5,644,200      4,781,700 

Net Tangible Assets                  5,748,900   5,102,700      4, 280, 00

Cash Flow Statement of Nike

(All amounts are in thousand)

PERIOD ENDING         31-May-06        31-May-05         31-May-04

Net Income            1,392,000           1,211,600              945,600  

Operating Activities, Cash Flows Provided By or Used In

Depreciation                                      290,900   287,700   310,400

Adjustments to Net Income                 28,200     84,400     66,200

Changes in Accounts Receivables          (85,100)   (93,500)  82,500

Changes in Liabilities                           279,400   112,400   269,100

Changes in Inventories                        (200,300) (103,300) (55,900)

Changes in Other Operating Activities    (37,200)   71,400     (103,500)

Total Cash Flow from Operating Activities

1,667,900   1,570,700   1,514,400

Investing Activities, Cash Flows Provided By or Used In

Capital Expenditures                           (333,700) (257,100) (213,900)

Investments                                      (909,900) (35,300)  (401,700)

Other Cash flows from Investing Activities            (33,000)  (68,000)  (330,900)

Total Cash Flows from Investing Activity

                              (1,276,600)         (360,400)                     (946,500)       

Financing Activities, Cash Flows Provided By or Used In

Dividends Paid                 (290,900)     (236,700)        (179,200)

Sale Purchase of Stock                       (535,800) (329,400) (166,200)

Net Borrowings                                  (24,200)   (90,900)  (53,100)

Other Cash Flows from Financing Activities

Total Cash Flows from Financing Activities

(850,900)   (657,000) (398,500)

Effect of Exchange Rate Changes         25,700     6,800      24,600

Nike Shares

Direct competitor comparison

                                   NKE     ADDYY.PK    Pvt1 Pvt2   Industry

Market Captured:           27.03B  N/A              N/A   N/A     883.02M

Employ­ees:                   28,000  N/A              N/A   2,800  543

Quarterly Revenue Growth:         8.70%          N/A   N/A     N/A        8.80%

Revenue:                      15.95B  N/A              N/A   1.54B  451.89M

Gross Margin:                43.86% N/A              N/A   N/A     41.04%

Operational Margins:       12.58% N/A              N/A   N/A     10.85%

Net Income:                  1.39B    N/A              N/A   N/A     35.93M

Earning Per Share:         2.703    N/A              N/A   N/A     1.52

Intraday performance summary of Nike

Direct Share holders

Holder                             Shares               Reported

HAYES DELBERT J               552,900               16-Jun-05

HOUSER DOUGLAS G          155,374               16-Apr-07

PARKER MARK G                137,554               9-Apr-07

PEREZ WILLIAM D              109,684               28-Dec-05

DENUNZIO RALPH D           78,400                19-Jan-07

Top Institutional Share holders

Holder

Shares

% Out

Value*

Reported

MASSACHUSETTS FINANCIAL SERVICES CO – OTHER

20,794,532

4.13

$2,209,626,970

31-Mar-07

FMR CORPORATION (FIDELITY MANAGEMENT & RESEARCH CORP)

14,446,638

2.87

$1,535,099,753

31-Mar-07

DODGE & COX INC

12,493,200

2.48

$1,327,527,432

31-Mar-07

JENNISON ASSOCIATES LLC

12,473,238

2.47

$1,325,406,269

31-Mar-07

Barclays Global Investors UK Holdings Ltd

11,397,708

2.26

$1,211,120,452

31-Mar-07

STATE STREET CORPORATION

11,255,614

2.23

$1,196,021,543

31-Mar-07

Calamos Advisors LLC

10,395,470

2.06

$1,104,622,642

31-Mar-07

LEGG MASON INC.

10,221,358

2.03

$1,086,121,501

31-Mar-07

VANGUARD GROUP, INC. (THE)

10,074,700

2.00

$1,070,537,622

31-Mar-07


NET SHARE PURCHASE ACTIVITY

Insider Purchases – Last 6 Months

Shares          Trans

Purchases                                           N/A              0

Sales                                                 5,341,640      36

Net Shares Purchased
(Sold)                                                (5,341,640)   36

Total Insider Shares Held                      20.29M         N/A

% Net Shares Purchased
(Sold)                                                (20.8%)        N/A

Other Share holders of Nike

Individual/Entity

Most Recent Trans.

Shares Owned as of Trans. Date

BIRD LEWIS L III
Officer

Automatic Purchase
14-Jul-06

9,523
14-Jul-06

BLAIR DONALD W
Officer

Option Exercise
31-May-07

35,280
31-May-07

BUCKLEY MARY KATE
Officer

Sale
24-Oct-06

10,665
24-Oct-06

CHEEK CRAIG
Officer

Automatic Sale
27-Sep-06

3,814
27-Sep-06

CLARKE THOMAS E
Officer

Sale
11-Jan-06

0
11-Jan-06

COLEMAN WESLEY A
Officer

Sale
27-Sep-06

14,521
27-Sep-06

CONWAY JILL K
Director

Disposition (Non Open Market)
30-Sep-05

18,568

30-Sep-05

DENSON CHARLES D
Officer

Automatic Sale
16-Feb-07

24,042
16-Feb-07

DENUNZIO RALPH D
Director

Sale
19-Jan-07

78,400
19-Jan-07

DESTEFANO GARY
Officer

Automatic Sale
29-Dec-06

37,371
29-Dec-06

EDWARDS TREVOR A
Officer

Sale
25-Jul-06

22,762
25-Jul-06

GROSSMAN MINDY F
Officer

Automatic Sale
31-Jan-06

10,007
31-Jan-06

HAYES DELBERT J
Director

Automatic Sale
16-Jun-05

552,900
16-Jun-05

HELFANT ADAM S
Officer

Automatic Purchase
14-Jul-06

20,205
14-Jul-06

HIDALGO JOAQUIN
Officer

Automatic Sale
23-Apr-07

3,814
23-Apr-07

HILL ELLIOTT
Officer

Option Exercise
29-Dec-06

6,348
29-Dec-06

HOUSER DOUGLAS G
Director

Automatic Sale
16-Apr-07

155,374
16-Apr-07

KNIGHT PHILIP H
Director

Disposition (Non Open Market)
12-Mar-07

6,835
12-Mar-07

MCLAUGHLIN P EUNAN
Officer

Disposition (Non Open Market)
18-Jul-06

21,188
18-Jul-06

OLIVET D SCOTT
Officer

Disposition (Non Open Market)
15-Jul-05

13,227
15-Jul-05

PARKER MARK G
Officer

Option Exercise
9-Apr-07

137,554
9-Apr-07

PEREZ WILLIAM D
Officer

Disposition (Non Open Market)
28-Dec-05

109,684
28-Dec-05

SPRUNK ERIC D
Officer

Option Exercise
11-Apr-07

19,882
11-Apr-07

STEWART LINDSAY D
Officer

Sale
4-Jan-07

11,916
4-Jan-07

THOMPSON JOHN R JR
Director

Option Exercise
12-Jan-07

4,000
12-Jan-07

VAN ALEBEEK HANS
Officer

Option Exercise
28-Dec-06

9,979
28-Dec-06

WOLFRAM ROLAND P
Officer

Disposition (Non Open Market)
19-Apr-07

12,896
19-Apr-07

WYETT ROGER
Officer

Automatic Purchase
14-Jul-06

9,523
14-Jul-06

Shares Transactions of Nike

INSIDER TRANSACTIONS REPORTED  

Date

Insider

Shares

Type

Transaction

Value*

31-May-07BLAIR DONALD W
Officer

30,000

Direct

Option Exercise at $22.25 per share.

$667,500

31-May-07BLAIR DONALD W
Officer

30,000

Direct

Automatic Sale at $56.50 per share.

$1,695,000

7-May-07BLAIR DONALD W
Officer

30,000

Direct

Option Exercise at $22.25 per share.

$667,500

7-May-07BLAIR DONALD W
Officer

30,000

Direct

Automatic Sale at $54 per share.

$1,620,000

23-Apr-07HIDALGO JOAQUIN
Officer

638

Indirect

Automatic Sale at $53.51 per share.

$34,139

19-Apr-07WOLFRAM ROLAND P
Officer

1,997

Indirect

Disposition (Non Open Market) at $53.48 per share.

$106,799

19-Apr-07WOLFRAM ROLAND P
Officer

3,298

Direct

Automatic Sale at $53.37 per share.

$176,014

16-Apr-07HOUSER DOUGLAS G
Director

10,000

Direct

Automatic Sale at $53.79 per share.

$537,900

11-Apr-07SPRUNK ERIC D
Officer

8,000

Direct

Option Exercise at $27.13 per share.

$217,040

11-Apr-07SPRUNK ERIC D
Officer

8,000

Direct

Sale at $53.95 – $53.97 per share.

$432,0002

9-Apr-07PARKER MARK G
Officer

52,500

Direct

Option Exercise at $27.13 per share.

$1,424,325

9-Apr-07PARKER MARK G
Officer

52,500

Direct

Sale at $54 per share.

$2,835,000

 

4-Apr-07

 

PARKER MARK G
Officer

52,500

Direct

Option Exercise at $27.13 per share.

$1,424,325

4-Apr-07PARKER MARK G
Officer

52,500

Direct

Sale at $53.50 per share.

$2,808,750

3-Apr-07HOUSER DOUGLAS G
Director

30,000

Direct

Option Exercise at $30.64 – $40.48 per share.

N/A

3-Apr-07HOUSER DOUGLAS G
Director

40,000

Direct

Sale at $53.19 – $53.23 per share.

$2,128,0002

12-Mar-07KNIGHT PHILIP H
Director

1,600

Direct

Disposition (Non Open Market) at $0 per share.

N/A

12-Mar-07KNIGHT PHILIP H
Director

1,600

Direct

Automatic Purchase at $0 per share.

N/A

16-Feb-07PARKER MARK G
Officer

1,798

Direct

Automatic Sale at $105.51 per share.

$189,706

16-Feb-07DENSON CHARLES D
Officer

701

Direct

Automatic Sale at $105.51 per share.

$73,962

13-Feb-07KNIGHT PHILIP H
Director

1,700

Direct

Automatic Sale at $104.44 – $105.54 per share.

$178,0002

13-Feb-07KNIGHT PHILIP H
Director

102,200

Direct

Automatic Sale at $105.21 – $105.5 per share.

$10,767,0002

13-Feb-07KNIGHT PHILIP H
Director

80,378

Direct

Automatic Sale at $104.91 – $105.2 per share.

$8,444,0002

13-Feb-07KNIGHT PHILIP H
Director

44,000

Direct

Automatic Sale at $104.34 – $104.9 per share.

$4,603,0002

13-Feb-07KNIGHT PHILIP H
Director

700

Direct

Automatic Sale at $104.32 – $104.33 per share.

$73,0002

12-Feb-07KNIGHT PHILIP H
Director

66,415

Direct

Automatic Sale at $104.14 – $104.42 per share.

$6,926,0002

 

12-Feb-07

 

KNIGHT PHILIP H
Director

61,600

Direct

Automatic Sale at $103.84 – $104.13 per share.

$6,405,0002

12-Feb-07KNIGHT PHILIP H
Director

101,900

Direct

Automatic Sale at $103.54 – $103.83 per share.

$10,566,0002

12-Feb-07KNIGHT PHILIP H
Director

39,200

Direct

Automatic Sale at $103.24 – $103.53 per share.

$4,053,0002

9-Feb-07KNIGHT PHILIP H
Director

10,800

Direct

Automatic Sale at $104.03 – $104.09 per share.

$1,124,0002

9-Feb-07KNIGHT PHILIP H
Director

33,400

Direct

Automatic Sale at $103.73 – $104.02 per share.

$3,469,0002

9-Feb-07KNIGHT PHILIP H
Director

60,900

Direct

Automatic Sale at $103.07 – $103.42 per share.

$6,288,0002

9-Feb-07KNIGHT PHILIP H
Director

231,508

Direct

Automatic Sale at $103.43 – $103.72 per share.

$23,978,0002

8-Feb-07KNIGHT PHILIP H
Director

78,080

Direct

Automatic Sale at $103.34 – $103.61 per share.

$8,079,0002

8-Feb-07KNIGHT PHILIP H
Director

56,900

Direct

Automatic Sale at $103.04 – $103.33 per share.

$5,871,0002

8-Feb-07KNIGHT PHILIP H
Director

44,700

Direct

Automatic Sale at $102.24 – $102.73 per share.

$4,581,0002

8-Feb-07KNIGHT PHILIP H
Director

100

Direct

Sale at $102.28 per share.

$10,228

8-Feb-07KNIGHT PHILIP H
Director

75,600

Direct

Automatic Sale at $102.74 – $103.03 per share.

$7,778,0002

7-Feb-07KNIGHT PHILIP H
Director

108,764

Direct

Automatic Sale at $102.74 – $103 per share.

$11,189,0002

7-Feb-07KNIGHT PHILIP H
Director

72,100

Direct

Automatic Sale at $102.44 – $102.73 per share.

$7,396,0002

7-Feb-07KNIGHT PHILIP H
Director

26,926

Direct

Automatic Sale at $102.14 – $102.43 per share.

$2,754,0002

7-Feb-07KNIGHT PHILIP H
Director

18,174

Direct

Automatic Sale at $101.82 – $102.13 per share.

$1,853,0002

7-Feb-07KNIGHT PHILIP H
Director

16,200

Direct

Automatic Sale at $101.42 – $101.81 per share.

$1,646,0002

6-Feb-07KNIGHT PHILIP H
Director

38,692

Direct

Automatic Sale at $101.12 – $101.26 per share.

$3,915,0002

6-Feb-07KNIGHT PHILIP H
Director

34,200

Direct

Automatic Sale at $100.81 – $101.11 per share.

$3,453,0002

6-Feb-07KNIGHT PHILIP H
Director

14,700

Direct

Automatic Sale at $100.45 – $100.79 per share.

$1,479,0002

6-Feb-07KNIGHT PHILIP H
Director

21,700

Direct

Automatic Sale at $100.15 – $100.44 per share.

$2,176,0002

6-Feb-07KNIGHT PHILIP H
Director

14,500

Direct

Automatic Sale at $99.42 – $99.82 per share.

$1,444,0002

6-Feb-07KNIGHT PHILIP H
Director

30,400

Direct

Automatic Sale at $99.83 – $100.14 per share.

$3,040,0002

5-Feb-07KNIGHT PHILIP H
Director

4,300

Direct

Automatic Sale at $99.94 – $100.24 per share.

$430,0002

5-Feb-07KNIGHT PHILIP H
Director

28,300

Direct

Automatic Sale at $99.50 – $99.93 per share.

$2,822,0002

5-Feb-07KNIGHT PHILIP H
Director

44,511

Direct

Automatic Sale at $99.20 – $99.49 per share.

$4,422,0002

5-Feb-07KNIGHT PHILIP H
Director

35,200

Direct

Automatic Sale at $98.90 – $99.19 per share.

$3,486,0002

5-Feb-07KNIGHT PHILIP H
Director

22,700

Direct

Automatic Sale at $98.60 – $98.89 per share.

$2,242,0002

5-Feb-07KNIGHT PHILIP H
Director

16,100

Direct

Automatic Sale at $98.45 – $98.59 per share.

$1,586,0002

2-Feb-07KNIGHT PHILIP H
Director

200

Direct

Sale at $101.32 per share.

$20,264

2-Feb-07KNIGHT PHILIP H
Director

2,200

Direct

Automatic Sale at $101.20 – $101.38 per share.

$223,0002

2-Feb-07KNIGHT PHILIP H
Director

9,100

Direct

Automatic Sale at $100.75 – $101.19 per share.

$919,0002

2-Feb-07KNIGHT PHILIP H
Director

23,700

Direct

Automatic Sale at $100.44 – $100.74 per share.

$2,384,0002

2-Feb-07KNIGHT PHILIP H
Director

44,191

Direct

Automatic Sale at $99.84 – $100.13 per share.

$4,418,0002

2-Feb-07KNIGHT PHILIP H
Director

51,500

Direct

Automatic Sale at $100.14 – $100.43 per share.

$5,165,0002

1-Feb-07KNIGHT PHILIP H
Director

200

Direct

Automatic Sale at $100.98 per share.

$20,196

1-Feb-07KNIGHT PHILIP H
Director

40,400

Direct

Automatic Sale at $100.67 – $100.96 per share.

$4,073,0002

1-Feb-07KNIGHT PHILIP H
Director

83,100

Direct

Automatic Sale at $100.07 – $100.36 per share.

$8,328,0002

1-Feb-07KNIGHT PHILIP H
Director

96,500

Direct

Automatic Sale at $100.37 – $100.66 per share.

$9,700,0002

1-Feb-07KNIGHT PHILIP H
Director

45,200

Direct

Automatic Sale at $99.77 – $100.06 per share.

$4,516,0002

1-Feb-07KNIGHT PHILIP H
Director

21,100

Direct

Automatic Sale at $99.43 – $99.76 per share.

$2,101,0002

 Recent Products of Nike

recent-products-of-nike

Recent Products of Nike

recent-products-of-nike2

Recent Products of Nike

recent-products-of-nike3

Recent Products of Nike

recent-products-of-nike4

Conclusion:

As I could outline that Nike is the Global Leader Sports Shoe making. Not only that but also they make textiles and apparels. They have a strong hold in US market as well as the global market.

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