Plan for Growth
Nike is a growth company. But we want to deliver growth in the right
way. We seek growth that is:
> Sustainable
> Profitable
> Capital efficient
> Brand enhancing
Like many other businesses, Nike faced some significant headwinds in
FY10 and FY11. Around the world, unemployment was high, especially
among youth; and governments wrestled with high debt levels. Rising
costs for energy and labor sparked inflationary pressures. In turn,
higher costs for materials, labor and freight were evident in our margins.
While the headwinds we faced were shared across our industry, the
competitive advantages we have are unique to the Nike portfolio. In
spite of ongoing macroeconomic challenges, we are well positioned
to leverage our strengths – including scale, operational capabilities
and pricing power – to help mitigate the risks beyond our control and
capitalize on opportunities to grow the company.