Current Event Summary Report

Calvin Luu

Finance 4610 – Professor Wang – Fall 2015

Current Event Summary Report - Due Decemeber 8th, 2015 Nike beats expected earnings by a landslide

Nike was founded on January 25th, 1964 as Blue Ribbon Sports, by Bill Bowerman and Phil Knight. They officially changed their name to Nike on May 30th, 1971, deriving it’s name from the Greek goddess of victory. By 1980, Nike wage rapidly growing and obtained about 50% of the market share in the U.S. athletic shoe market. The company went public in December of that year. NIKE, Inc., along with its subsidiaries sells athletic footwear, apparel, equipment, and accessories for men, women, and kids worldwide. The company offers products in many different categories, some of which include basketball,

Nike sells their products to these retailers oversea independent distributors, licensees and sales representatives around the world. They sell to thousands of retailers and ship products from 45 distribution centers outside of the United States. During the fiscal of 2015, NIKE’s three largest customers outside of the United States totaled for approximately 12% of total non-U.S. sales. Their business goes directly from Nike itself to the customer, with their own brick and mortar stores. They operate a number of retail stores internationally, outside the United States. In addition to Nike and Converse owned e-commerce websites in over 25 countries, we can see their non-U.S. retail stores in the chart

The projected EPS was $1.19 and projected revenue was $8.22 Billion. The actual projected EPS and revenue is $1.34 and $8.41 Billion, respectively. Wall Street analysts say that sales this quarter was boosted by its basketball and casual running footwear, with a majority of its revenue coming from back-to-school sales. With the upcoming Christmas holidays, many project and predict a huge surge in stock price, due to theholiday sales. If there is a huge rise in stock prices, Nike’s revenue and earnings will rise