A LETTER TO OUR SHARE HOLDERS
IN THIS TIME OF RELENTLESS CHANGE, the state of play for NIKE has never been more dynamic. At retail, our industry is in the early stages of unprecedented transformation. Mobile innovation and personal services are dominating the landscape. For the consumer, the connection between the digital and physical worlds is closer than ever.
At the same time, global companies like NIKE are faced with foreign currency pressures and the realities of geopolitical volatility. And above all, climate change is constraining resources. These seismic shifts demand all of our ingenuity – but also create tremendous opportunity for NIKE.
This year, we managed uncertainty in the near-term and targeted our investments to accelerate growth for years to come. We developed promising technologies, formed groundbreaking partnerships, and grew our global footprint. We empowered our people and expanded access to sport. We boosted our digital presence, evolved our supply chain, and harnessed sustainable innovation to enhance our effciency.
Long-term growth is about more than what we make – it’s how we bring it to life in the marketplace. That’s why we invest in integrating digital and physical retail seamlessly, giving our consumers better access to the products they want. As the global leader, NIKE is driving the new reality of retail for athletes around the world.
NIKE has never had so much opportunity before us. Powered by our extraordinary team, innovative mindset, and global brand leadership, I’ve never been more confdent in the future NIKE is creating. Building off a strong fscal 2016, I’m incredibly excited about what’s in store for fscal 2017 and beyond.
Thanks,
Mark Parker Chairman, Chief Executive Offcer and President NIKE, Inc.
Consolidated Balance Sheets
Consolidated Statements of Income
Mexico Brazil Turkey Saudi Arabia India
South Korea
Brand Reported Futures Growth By Geography
Futures orders for NIKE Brand footwear and apparel scheduled for delivery from June 2016 through November 2016. NIKE Brand reported futures include (1) orders from external wholesale customers and (2) internal orders from our DTC in-line stores and e-commerce operations which are refected at prices that are comparable to prices charged to external wholesale customers. The U.S. Dollar futures orders amount is calculated based upon our internal forecast of the currency exchange rates under which our revenues will be translated during this upcoming fscal year.
The reported futures orders growth is not necessarily indicative of our expectation of revenue growth during this period. This is due to year-overyear changes in shipment timing, changes in the mix of orders between futures and at-once orders, and because the fulfllment
of certain orders may fall outside of the schedule noted above. In addition, exchange rate fuctuations as well as differing levels of order cancellations, discounts and returns can cause differences in the comparisons between futures orders and actual revenues. Moreover, a portion of our revenue is not derived from futures orders, including sales of at-once and closeout NIKE Brand footwear and apparel, all sales of NIKE Brand equipment, the difference between retail sales and internal orders from our DTC in-line stores and e-commerceoperations, and sales from Converse, NIKE Golf and Hurley.
Reported futures have been restated using the prior year exchange rates for the comparative period to enhance the visibility of the underlying business trends, and excluding the impact of foreign currency exchange rate fuctuations.