NIKE, Inc. Recasts Segment Financials in Connection with the Consumer Direct Offense
September 25 2017 - 4:15PM
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 fiscal 2018.
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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170925006333/en/
NIKE, Inc.Investor Contact:Nitesh Sharan,
503-532-2828orMedia Contact:Kellie
Leonard, 503-671-6171
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