In Japan, the company saw continued signs of improvement.

Revenues grew about 2% on a currency neutral basis.

In the Americas region, revenues increased 19%, driven by about five points of benefit from stronger currencies and double-digit growth across all three product types.

- Excluding the effects of currency changes revenue growth for the region was driven by the Latin American markets led by growth of over 20% in Argentina and in Mexico.
- Pre-tax income for the Americas region grew 12% to $69 million, driven by revenue growth, gross margin expansion and favorable exchange rates.

Business in the US region delivered solid results.

- Revenues increased 7% versus the prior year, driven by higher sales to most of top accounts. - Revenues from NIKE owned retail stores in the US grew 17%.
- Comparable store sales at NIKE first quality stores increased 6%.
- US futures for the period from December 2007 to April 2008 increased 1%.

- Footwear business in the US delivered an excellent second quarter, as revenues grew 12% and gross margins expanded.
- Unit volume increased double-digits driven by strong growth in the sportswear, Jordon and kids categories and was partially offset by decline in average price per pair.

US Apparel revenues were down 3% as growth in performance apparel was more than offset by softness in basic sportswear products such as T-Shirts and Fleece.

Pre-tax income for the US region increased 9% to $307 million, driven largely by growth in revenues and footwear margins.

- Revenues from other businesses grew 16%
- Converse revenues advanced over 40% and pre-tax income grew by a third.

- Revenues for NIKE Golf, Cole Haan, Hurley, and NIKE Bauer Hockey each grew double-digits.
- Pre-tax income for the other businesses was up 31%, driven by strong revenue growth, expanding gross margins and SG&A leverage.
- SG&A expense for NIKE Inc. grew 17% with four points of the growth coming from changes in exchange rates.

Excluding currency effects demand creation grew 12% and operating overhead grew 14%.

Demand creation increased primarily due to investment in retail presentation with accounts, brand events such as the NIKE+ holiday campaign and sports marketing investments in soccer and basketball.

The growth in operating overhead was driven primarily by investments in strategic growth initiatives such as NIKE-owned retail, China and Converse as well as normal wage inflation and performance based compensation. Other income was about $1 million versus a small other expense in last year''s second quarter.

The combination of currency hedge losses and the favorable translation of foreign currency denominated profits from international businesses increased year-over-year pre-tax income by about $25 million.

Tax rate was 30.3%, in-line with estimated effective tax rate for the remaining quarters of the fiscal year. This was a higher rate than last year''s second quarter, which included a retroactive benefit from an international tax agreement.
In addition to delivering strong profitability, the company continues to drive capital productivity. The company improved cash conversion cycle by 11 days, driven by improved productivity metrics for inventory, accounts receivable and accounts payable.

Fiscal 2008 Outlook

- The company expects low double-digit revenue growth, driven by business momentum, and the continued weakness of the US dollar. The company is forecasting gross margin growth roughly in-line with year-to-date results as the benefits of clean inventories, continued progress on gross margin initiatives and favorable selling currencies more than offset the impact of sourcing cost pressures such as higher oil prices, labor rates and stronger Asian currencies.
- The company expects SG&A to grow faster than revenues, primarily due to accelerating demand creation spending over the balance of the year. This spending will be weighted more heavily towards the fourth quarter, driven by the Beijing Olympics and the European Football Championships.

- For the second half of the year the company expects the weaker dollar will have a positive impact on overall profitability as positive translation benefit should more than offset currency hedge losses. However, these currency hedge losses will likely result in an increase to other expense in the second half of fiscal 2008.
- For the full year revenues for the US region will grow closer to the mid-single digit growth rate.

Key questions from the second quarter earnings call conducted by NIKE Inc. on December 19, 2007.