BEAVERTON, Ore.–(BUSINESS WIRE)–On June 15, 2017, NIKE, Inc. (NYSE: NKE) announced the Consumer Direct
Offense, a new Company alignment designed to allow NIKE to better serve
the consumer personally, at scale. In connection with this new
formation, NIKE, Inc. also announced the realignment of its NIKE Brand
geographic operating segments into a new structure consisting of four
geographies and communicated that financial results for the NIKE Brand
will be reported based on these four operating segments beginning in
On September 25, 2017, the Company furnished changes to its financial
disclosures in connection with its new reportable operating segments for
the NIKE Brand which are: North America; Europe, Middle East & Africa
(EMEA); Greater China; and Asia Pacific & Latin America (APLA). In
addition, the Company recast certain historical financial information to
reflect the new reportable operating segments which will be posted to
its website located at http://investors.nike.com.
NIKE, Inc.’s business model is evolving. Combined with previously
communicated shifts the Company has been making toward direct, faster
and closer to market business models, Futures Orders have become an
increasingly less reliable indicator of NIKE, Inc.’s future performance.
Over the past year, the Company has accordingly clarified the lesser
relevance of Futures Orders reporting. While Futures Orders remain an
important element of the Company’s supply chain, the Company has not
recast reported Futures Orders in accordance with its new operating
segments and, beginning with NIKE, Inc.’s first quarter of fiscal 2018,
will discontinue reporting Futures Orders in its financial disclosures.
Each NIKE Brand geographic segment operates predominantly in one
industry; the design, development, marketing and selling of athletic
footwear, apparel and equipment. NIKE Direct operations continue to be
managed within each geographic operating segment. Converse continues to
be a reportable segment and operates in one industry: the design,
marketing, licensing and selling of casual sneakers, apparel and
accessories. The changes in the segment structure discussed above affect
only the manner in which the results for the Company’s operating
segments were previously reported. The recast historical segment
information has no impact on the Company’s previously reported
consolidated statements of income, balance sheets, statements of cash
flows and statements of shareholders’ equity.
About NIKE, Inc.
NIKE, Inc., based near Beaverton, Oregon, is the world’s leading
designer, marketer and distributor of authentic athletic footwear,
apparel, equipment and accessories for a wide variety of sports and
fitness activities. Wholly-owned NIKE, Inc. subsidiary brands include
Converse, which designs, markets and distributes athletic lifestyle
footwear, apparel and accessories; and Hurley, which designs, markets
and distributes surf and youth lifestyle footwear, apparel and
accessories. For more information, NIKE, Inc.’s earnings releases and
other financial information are available on the Internet at http://investors.nike.com.
Individuals can also visit http://news.nike.com
and follow @NIKE.