Callaway



Nike is recognized as "the" brand for promoting superior athletic performance and is worn and endorsed by the world's best athletes and teams. Nike has endorsed such athletes as Michael Jordan, Lebron James, Michael Vick, Serena and Venus Williams, Lance Armstrong, Terrell Owens, and Michael Johnson. It is widely know that the "swoosh" signifies greatness and athletic domination. I will attempt to inform the reader of the financial situation of one of the fastest growing, and most prolific companies in the world today.
The Nike "swoosh" found its origin at Portland State University when founder Philip Knight met Carolyn Davidson, a graphic design student at the University. Mr. Knight offered Carolyn a couple bucks an hour if she would agree to do some design work for his small company. Mr. Knight was pressed for time and he decided on one of her designs saying "I don't love it, but it will grow on me."# Davidson submitted her bill for $35 for the design, and the two did little work over the next several years. However, in 1983 Davidson was invited to a catered lunch where she was given a gold ring with a "swoosh" and a diamond imbedded in it. Mrs. Davidson would also receive another gift compliments of Mr. Knight. It was an envelope containing an unnamed, but substantial amount of stock. "The stock has split three times since I received it, so I can definitely say design has grown on Philip Knight. It is also relatively safe to say that the "swoosh" has grown on the rest of the world.
From Nike's birth on the track at the University of Oregon in 1971, to the current net income that tops 12.3 billion,# the industry has become second to none and would be both a pleasure to work for and a pleasure to invest in. I believe investing in Nike would be an intelligent decision based on their financial gains and motivated internal leadership as well as the influence Nike has on the athletic community. Nike is known throughout the world as "the" attire for championship athletes. This reputation will only flourish as young athletes aspire to be like their heroes and wear the swoosh. The company can only move forward financially in their quest for perfection.
As of December 28, 2004 Nike will be under the command of a new CEO.# William D. Perez, will leave his present position as CEO for S.C. Johnson & Son, inc., and take over for Philip H. Knight. However, Mr. Knight will stay on as Chairman of the Board of Directors. This leadership change should help elevate Nike, while at the same time keep the company stable. The change in an already successful company is a gamble but should prove to be a success based on the market and the demand for Nike.
Nike is taking the industry by storm. On September 4, 2003#, Nike purchased Converse and will not change the logo, but continue to market and sell Converse under the Converse name and will take all profits from sales and stocks. On November 10, 2004, the National Basketball Association announced it has signed a multiyear marketing agreement.# This move will further expand advertising and marketing for both the NBA and Nike. Nike, Converse, and the Jordan brands will lead the assault on the NBA.
Nike has several smaller companies that produce significant revenues. Converse Inc., NIKE Golf, Bauer NIKE Hockey Inc., Cole Haan, Hurley International LLC and Exeter Brands Group LLC, grew 64 percent to $434.5 million from $265.2 million last year.# These companies make Nike a very diverse company. Stability is the key with Nike. Nike will never fail because it takes up so much of the industry in so many different ways.
"The Board of Directors of NIKE, Inc. (NYSE:NKE) has declared a quarterly cash
dividend of twenty-five cents ($0.25) per share on the Company's outstanding Class A

and Class B Common Stock."# This is the third consecutive year that Nike has provided a cash return that has increased from the previous year. This type of performance will prove to comfort and assure investors that Nike will continue to not only succeed, but to reward loyal investors. The dividends should only increase, and Nike should only continue to grow.
Nike is not only a company that thrives on their success, but they give back to the community. The community and the playgrounds are directly responsible for the success of the company. In the fiscal year 2004, Nike contributed $37.3 million in cash and products to non-profit partners around the world.# This may be the most impressive part of the Nike family because it is so easy for a multi-billion dollar a year company to forget about their roots. In fact, "three percent of the pretax earnings go to charities, nonprofit organizations, and partners around the world."# Nike has also taken a front seat approach to the kids of the world. Nike has three goals that will impact kids. 1) Get kids more physically active. 2) Get kids involved with the teamwork and dedication that sports demands. 3) Have a positive impact on their lives and the lives of those around them.
In closing I would like to say Nike is a proven winner. Nike is a very good investment opportunity especially for a young an inexperienced investor. Nike controls the industry and almost everything they have touched has turned to gold. Nike is controlled by a strong internal core of leaders who are on the cutting edge of the industry, and they have proven over time that they are determined to be successful. One of the best command decisions Nike has made is to let professional athletes lead them into the twenty-first century. This forms a positive role model for both young children and college athletes. Not only is Nike a great investment opportunity, but they are a good family company who cares about the community and the kids who live and play there. During my study this semester I have been extremely impressed with this company. Nike would be a pleasure to work for and to invest in.



Works Cited

http://www.nike.com/nikebiz/nikebiz.jhtml?page=5&item=origin
http://www.nike.com/nikebiz/nikebiz.jhtml?page=5&item=origin
http://www.nike.com/nikebiz/nikebiz.jhtml?page=11

Nike Completes Acquisition of Converse, Inc. http://www.nike.com/nikebiz/news/pressrelease.jhtml?year=2003&month=09&let

nikebiz/news/pressrelease.jhtml?year=2003&month=09&letter=a.

financeQuoteCompanyNewsArticle.jhtml?duid=mtfh19646_2004-11-10_16-15-05_wen9539_newsml.

http://www.nike.com/nikebiz/news/pressrelease.jhtml?year=2004&month=09&letter=c

http://www.nike.com/nikebiz/news/pressrelease.jhtml?year=2004&month=11&letter=e

http://www.nike.com/nikebiz/nikebiz.jhtml?page=26&item=giving Abstract

Nike is one of the most profound companies in the world today. Not only are they a giant in the field of athletics and fashion, they are innovators of both good works for the community and a good influence to the youth of America. Nike is a company that started between two men, the University of Oregon track coach Bill Bowerman, and one of his track athletes, Phil Knight in 1971. The two started the company to benefit them for the track season. They had no idea of the giant the were awakening. After 30 years they have built the largest sports and fitness company in the world, and today Nike has a revenue of 12.3 billion. Their stock is always on the rise, and is in the process of paying a quarterly dividend of 25 percent. Led by a resurgent Board of Directors, 24,667 employees, and an array of famous athletes Nike is still on the rise. If there ever was a company to invest in, Nike is the one.




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