Q:

A:

What is the core of NIKEs

philosophy?

We believe in potential, not

limits. The 4-minute mile was
safe, until Roger Bannister.
Lou Gehrigs 2,130 straight
games was safe, until Cal
Ripken. No one would ever
clear 29 feet in the long jump,
until Bob Beamon. Nobody
would ever beat Bob Beamon,
until Michael Powell. Thats
how it is with NIKE. We believe.

Mark Parker
President and Chief Executive Officer, NIKE, Inc .

ON GROWTH . . .

represent a more diversified

This is really about maximizing

business as part of an optimi-

on the best opportunities for

And we have a lot of both.

So our mission is to take the

How much more can NIKE grow?

portfolio, and they help keep the

our supply chain efficiencies

zation plan, making sure we

the company.

Theres just a deep competitive

things we do best and share

I dont believe in limits, but I

NIKE brand focused, allowing

and minimizing costs. Since

leverage our resources, manage

fire that makes us try to be a

them with the world and, hope-

believe in goals. Our goal is to

us to develop new business op-

2001 weve had nine successful

our costs, and invest wisely in

What should shareholders

leader in everything we do.

fully, inspire and enable individ-

reach $23 billion in revenue by

portunities where we dont want

supply chain implementations.

growth opportunities.

understand about NIKE?

fiscal year 2011, and Id say were

the NIKE brand to go. There is

That helps us better manage

well on our way.

also a lot of opportunity for

forecasting and inventory.

complementary growth across

Theres a lot we do to manage

Seventy-five percent of that

the portfolio through sharing

growth will come from the NIKE

resources and efficiencies.

brand. The strength of the NIKE

uals to reach their potential.

I think as a shareholder you

ON NIKE . . .

What role will acquisitions play

should look at NIKE and ask

NIKEs mission statement is to

What makes NIKE different?

in the NIKE growth plan?

yourself, Are they really focused

bring inspiration and innovation

I think there are a few things I

product costs lean manufac-

We are always looking for ways

on the right things? Is the product

to every athlete in the world.

see everyday that really set us

turing, raw materials consolidation,

to expand our growth potential,

innovative and compelling?

What does that mean to you?

apart. First, were innovators by

making sure we optimize our

but within certain principles.

Is the consumer experience rich

I think sports is a healthy and

nature. Were fixated, obsessed

brand is our most valuable asset.

In fiscal 07 the NIKE subsidiaries

SKU management, focusing

We ask a lot of tough questions.

and relevant? Are we being a

positive expression of our

by innovation. I think that NIKE

Its intangible, it doesnt show up

grew revenue 16 percent to

on the most profitable styles.

responsible corporate citizen

human nature. Were competi-

represents a passion and an

on the balance sheet, but really

reach $2.3 billion. We saw record

Were also ramping up our

Does it improve our ability to

in the world? Are we completely

tive, were physical, were

insatiable appetite to go deeper

its our most valuable asset.

revenues and PTI for Converse

digital samples and 3-D model-

grow existing businesses?

focused on the consumer?

drawn to challenges. We like

with an athlete within sports

and Hurley, record revenue

ing to reduce costs in product

When the answer is yes, we

to achieve things on a personal

and to take those insights and

We see tremendous opportunity

for Cole Haan, and record PTI

development. There is a

buy a company like Impact Golf

And thats really what our job is

level, and we like being part

translate those creatively into

in both established and emerg-

for NIKE Bauer Hockey. Over the

lot of discipline around the

Technologies, which allowed us

to make sure that were clear

of teams that share a passion

innovative concepts and prod-

ing markets around the world.

last five years, the subsidiary

company on becoming leaner

to become the leading innovator

about our potential. Kind of like

and a common goal.

ucts and stories.

In the U.S. revenues grew seven

brands have more than doubled

and stronger.

in golf club design.

percent in fiscal 07. NIKE is the

their revenue contribution.

To me sports, at its best,

We have incredibly wide pe-

The second big lever we pull

We ask, Does it expand our

is a noble part of the human

ripheral vision, the ability to see

experience.

and be inspired by things that

fastest growing running brand

in Germany. In Russia weve

To see the potential of the sub-

to create value is cash deploy-

consumer base within our culture

doubled revenue in the last

sidiaries, you just have to look

ment. We target a dividend

of sports? When the answer

three years. Were the No. 1

at Converse. Revenue increased

payout between 20 and 30

is yes, we buy a company like

athletic brand in China, a market

23 percent, and PTI increased

percent of our trailing 12-month

Converse, which is delivering

we expect to be our second

133 percent. In fact, Q4 was the

EPS. Since 2003, weve raised

tremendous growth by evolving

largest within three years.

biggest global sales quarter ever

our dividend payout from 20

franchise concepts like the Chuck

for Converse.

to 24 percent. Im proud of our

Taylor, and by creating new ideas

performance there.

in footwear and apparel that

Our promise is to deliver con-

Theres a lot of pride at NIKE

... our intentions, our influence,
our results are all really very
positive. But that doesnt
mean we are satisfied.

happen in sports, but also in film

NIKE is a part of that experience.

and music and digital technol-

Were athletes, so we under-

ogy everything in youth

stand sports and what athletes

culture around the world. Were

need to compete. Were inno-

incredibly curious, but were also

vators, so were able to create

incredibly focused.

products that enhance perfor-

sistent, profitable growth over

And next year is the 100th an-

the long term high single-digit

niversary of Converse, so were

We also return cash to share-

revenue growth and mid-teens

busy cooking up some special

holders in the form of share

EPS. Since we introduced this

concepts to celebrate the cen-

repurchases. Weve increased

We ask, Does it give us entry

that permeates our culture. NIKE

Theres also an asterisk in our

what we do. We are a youthful

growth model in 2001, weve

tennial of the brand.

our share repurchases in each

into new consumer cultures

has tremendous resources, but

mission statement If you

and a premium brand. Our inten-

of the last three years and have

that can benefit from the cross-

we have even more opportuni-

have a body, youre an athlete.

tions, our influence, our results

generated a revenue CAGR of

resonate with young consumers

all over the world.

an athlete. Were actually made

mance. And were passionate

We continually challenge our-

about what we do.

selves to be better. Theres a lot

up of a lot of athletes, and I think

of pride at NIKE. We believe in

nine percent, grown EPS at 18

How do you convert revenue

finished our last two programs

over of NIKE technology?

ties. So we have to make sure

Thats actually a quote from Bill

are all really very positive.

percent, and seen ROIC grow

growth into value for your

well ahead of schedule. We are

When the answer is yes, we buy

we are making the most of both.

Bowerman. He was the legend-

But that doesnt mean that we

from 14 to 22 percent. In other

shareholders?

currently buying shares under a

a company like Cole Haan, which

And that requires a superior

ary track coach at University

are satisfied.

words, were keeping our promise.

For growth to be good, it has to

$3 billion, four-year, repurchase

uses NIKE Air to redefine the

management team, which we

of Oregon, and co-founder of

be profitable and sustainable.

program approved in June 2006,

concept of comfort in fashion

have. We have the best team

the company. That asterisk

How do you keep a $16 billion

What strengths do the NIKE

There are two big levers we pull

and were well on our way to

footwear.

in the business. Every leader at

means a lot at NIKE. It speaks

company fast and nimble?

subsidiaries contribute to your

to drive health and value into

completing that program on or

growth plan?

the business.

ahead of schedule.

Our subsidiaries are critical to

NIKE reaching its potential. They

The first is operational excellence.

I look at every part of the

NIKE brings a unique point of

to the removal of barriers, the

To stay quick and nimble,

This is the benefit of a strong

view to the table. Consensus

refusal to accept the limitations

you have to organize against

balance sheet, being able to ag-

is important, but not nearly as

of others, the right for every-

specific opportunities and em-

gressively investigate and act

powerful as ideas and debate.

body to play and to compete.

power people to attack those

opportunities. There are some

vertically oriented and connect-

who takes their competition

runners approach training

What is your approach to

Whats most inspiring for me

great examples of that at NIKE

ing with consumers on a very

for granted ends up watching

using the iPod and the Inter-

Corporate Responsibility?

is that CR is not some adjunct

NIKE Golf, the Jordan Brand,

deep and meaningful level.

them from behind.

net to track and share your

Were focusing on four

cost of business at NIKE. CR is

In the end, great design is about

performance and connect with

areas labor, climate change,

demonstrating an increasing

enhancing the human experi-

NIKE Skate.

outside the product realm.

It allows us to be much more

That said, NIKE is not a reaction-

a global community. Thats

environmental design, and

return on investment. Its a

ence. In that sense, its the job

NIKE Golf is now the No. 1 golf

surgical and opportunistic in

ary company. The gap between

entirely new. We knew we were

the community. Its all in our new

chance for us to apply our in-

of every NIKE employee to be

apparel company in the world.

every aspect of each business

NIKE and the competition is

onto something big with NIKE+,

Corporate Responsibility report,

novation and creativity to help

a designer.

Were in the top three brands

product design, demand

smaller than the gap between

but it has succeeded beyond

which is available online at

build a better world. And its

for drivers. We finished the

creation, retail presentation,

NIKE and its potential. Thats

any of our expectations. And

[Link].

being driven by and embraced

I still draw shoes, by the way, but

2006 PGA Tour with the most

how we communicate. It really

where we spend our time

we see new opportunities

by employees.

these days its more for therapy

wins in drivers, irons, fairway

combines the best of NIKEs na-

developing and leveraging

everyday to expand that con-

First, were working to help

woods and wedges. On the

ture to be bold and fast and

our resources to maximize

nection between the physical

bring about systemic change

ON THE JOB . . .

year, revenue from NIKE

aggressive with the power

our potential.

and the digital world.

to benefit workers and fac-

What is your job?

What is your working relation-

Golf grew 12 percent to over

and leverage of NIKE resources

tory conditions in the supply

I love my job. I grew up in this

ship with Phil?

$600 million, and grew pre-tax

and efficiencies across the

ON CHANGE . . .

What are the big opportunities

chain eliminating excessive

company. Ive been here almost

Everybody works for somebody,

income over 30 percent.

categories. Thats a huge com-

How is NIKE contributing to

in retail?

overtime, converting to lean

30 years. Ive seen the best

and Im glad to work for Phil.

petitive advantage for us.

the digital revolution?

Our industry is playing a lot of

manufacturing, and supporting

athletes compete all over the

We have a long history together,

NIKE Golf performs at this

than it is for production.

Digital connectivity has changed

catch-up at retail. If you look at

workers right to Freedom of

world. And for all the time Ive

and weve developed a lot of

level because they are totally

Athlete endorsement costs

everything, and that change is

sports specialty, for example,

Association.

been here, Ive worked shoulder

mutual respect and trust. He

immersed in the world of

continue to rise. Are they still

just beginning. The rise of social

its tough to tell one store from

to shoulder with the brightest,

gives me a lot of support and

their consumers. They have

worth it?

networks, the connection of

another, or one mall from the

the most creative people in

freedom in my job, and I thrive

a complete view of the NIKE

Absolutely. Athletes, at their

communities and cultures, the

next. What kind of choice does

the industry.

on that.

Golf experience, from product

best, represent some of our

ability to access and share

that offer the consumer? So

creation all the way through

most noble characteristics

information and content is creat-

were focused on three things

I am incredibly grateful for my

Phil is a tremendous source of

presentation at retail. If you

passion, commitment, competi-

ing a whole new generation

that will lead change in retail.

history with NIKE, but I dont

inspiration. He really represents

could visit the NIKE Golf group,

tive fire, being part of a team,

of opportunity. NIKE is taking

dwell on it. NIKE is a company

the values that define NIKE,

youd know what I mean. Every

the ability to overcome adversi-

advantage of that opportunity.

First, were working with our

that is always looking to the

and I share those same values,

image you see, every conversa-

ty. To me athletes and sports are

Unlike some companies, we

retail partners to create new ex-

future. I believe that human po-

as do the 30,000 people who

tion you hear is all about golf.

synonymous in that way. They

dont fear the digital world. We

pressions for the NIKE brand and

tential is unlimited. So, I believe

work here.

They talk it, wear it, walk it, play

are representatives of universal

embrace it, and were playing

for their stores. The more innova-

it, they live it. And it shows.

values that transcend borders

a role in helping to drive some

tive presentation we can bring

Second, were acting on the need

ited. And my job is to make sure

The same is true for NIKE Skate

and unite cultures.

of that change.

to our athletic specialty partners,

to address climate change

that NIKE and our consumers

the more differentiated and

reducing our CO2 emissions and

keep growing.

compelling their stores will be.

moving toward carbon neutrality.

and the Jordan Brand, they are

Design is a way of looking at

the world and seeing problems
and solutions that others
cant see.

that NIKEs potential is unlim-

culturally deep and specific,

When we help athletes reach

It allows us to connect more

and set up to capitalize on that.

their potential, that process

surgically with people and

helps NIKE and consumers reach

markets around the world.

Were also developing NIKE-

Third, were aggressively innovat-

Do you miss that?

We looked at that model and

theirs. So, have athletes lost

It helps us share ideas, build

owned store concepts that will

ing around environmental design.

No, because Im still very

saw tremendous potential for

relevance for NIKE and its con-

communities, tell stories

connect with consumers at the

Our Considered Design ethos

engaged in design. But I want

the rest of the brand. So, we

sumers? No. Are we changing

to be more immediate and

category and brand level in ways

creates product that is better for

to make a distinction here.

organized the company into six

the way athletes contribute to

more relevant with more

I think no other company can do.

the athlete and the planet.

Design is not merely a func-

key categories basketball,

the NIKE story? Yes.

consumers.
And were expanding our online

Fourth, we believe that sports

looking at the world and seeing

running, soccer, mens training,

You started as a designer.

tion at NIKE. Design is a way of

womens training and sports-

Which competitor do you

Were also able to integrate

presence. This is a tremendous

can change a young persons

problems and solutions that

wear. These categories are,

fear most?

the digital world with the

opportunity for NIKE that we

life. Let Me Play is a program to

others cant see. In fact, I would

in essence, thinking and acting

I dont fear any competitor,

physical world. NIKE+ has fun-

have not successfully devel-

help ensure that every young

broaden the definition of design

like individual companies,

but I respect them all. Anybody

damentally changed the way

oped, and thats changing.

person has access to sports.

to include systems and processes