Nike (nke) Designs, Develops,

NIKE (NKE) designs, develops, markets and sells high quality footwear, apparel,

equipment and accessory products worldwide. We are the largest seller of

athletic footwear and apparel in the world. We sell our products to retail

accounts, through NIKE-owned retail stores and internet sales, which we refer to

as our "Direct to Consumer" operations, and through a mix of independent

distributors and licensees, 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 achieve

long-term revenue growth by creating innovative, "must have" products, building

deep personal consumer connections with our brands, and delivering compelling

retail presentation and experiences.

In addition to achieving long-term revenue growth, we continue to strive to deliver shareholder value by driving operational excellence in several key areas:

" Making our supply chain a competitive advantage through operational

discipline,

" Reducing product costs through a continued focus on lean manufacturing and

product design that strives to eliminate waste,

" Improving selling and administrative expense productivity by focusing on

investments that drive economic returns in the form of incremental revenue

and gross margin, and leveraging existing infrastructure across our

portfolio of brands to eliminate duplicative costs,

" Improving working capital efficiency, and

" Deploying capital effectively to create value for our shareholders.

Through execution of this strategy, our long-term financial goals continue to

be:

" High single-digit revenue growth,

" Mid-teens earnings per share growth,

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