This summary is based on the first quarter fiscal 2008 earnings call conducted by Nike Inc. (NKE: chart) on September 20, 2007.

Chief Executive Officer: Mark Parker
President - Nike Brand: Charlie Denson
Chief Financial Officer, Vice President: Don Blair
Vice President of Investor Relations: Pamela Catlett

Key Investors Issues

- Futures orders scheduled grew over 11.5% to $5.9 billion.
- The company repurchased 5,757,101 shares for $321.5 million.
- Plans were announced to sell off the hockey company, Nike Bauer Hockey and restructure its portfolio.

First Quarter Highlights

Net revenue was up 11% to $4.7 billion from $4.2 billion in the prior year as the sports company benefited from the weaker dollar and strong revenue from all regions.

- The firm added $461 million of incremental revenue to reach $4.7 billion.
- Global Futures were up 10% on a constant dollar basis.
- Futures orders scheduled for delivery from September 2007 through January 2008 grew over 11.5% from 2007 to $5.9 billion driven by high teens growth in each of the international regions and changes in currency.
- Gross margins were 44.8% compared to 44.1% in 2007, driven by lower air freight costs, faster revenue growth in high margin businesses and currency changes.

Net income increased 51% to $569.7 million, or $1.12 a share, compared to $377.2 million, or 74 cents in the prior year, driven by strong operating performance and a one-time tax benefit.

- Operating overhead grew 12%, including currency changes. The timing of contributions to the Nike Foundation drove two points of the increase, while investments in Nike-owned retail accounted for another three points of growth.
- Free cash flow from operations grew 47% to $227 million as the cash conversion cycle improved by 9 days, driven by improved productivity metrics for inventory, accounts receivable and accounts payable. Worldwide inventories were only 1% above prior year levels.
- The firm repurchased 5,757,101 shares for $321.5 million in line with the four-year, $3 billion share repurchase program approved in 2006. As at quarter end a total of 23.8 million shares had been repurchased for $1.1 billion.

Regional Performance Highlights

- In the EMEA region, fundamentals are improving with inventory down and revenue up 16% to $1.5 billion from $1.27 billion in the year ago period.
- The firm invested in cleaning up the marketplace, reducing inventories, building category focus and creating the required momentum.
- Standouts were the UK, which grew 10% and the emerging market countries which grew over 17%.
- Futures orders for the EMEA region grew 14% in constant dollars, reflecting growth in nearly every country in the region.

Growth in key categories was led by soccer, running sportswear and women’s training with the T90 football boot having tremendous success in the market.

- Nike+ continues to grow in the region with Nike+ members having logged over 39 million miles, making it the world’s largest running club.
- Pretax income grew 21% to $375.5 million driven by robust revenue growth, improved profit margins and stronger European currencies.

- In the Americas, revenue was up 15% to $279.5 million, from $242.5 million in 2007 driven by strong growth in Argentina and Mexico as well as strong sell through of the Zoom footwear launch in Canada and Mexico.
- Apparel revenue increased 14% to $58.3 million following the taking over of distribution of apparel in Brazil.
- Pretax income grew 16% to $57.9 million, powered by revenue growth and expense leverage.

- In the US, revenues grew 2% from $1.6 billion in 2007 to $1.64 billion, driven by changes in shipment timing and weaker sales to athletic specialty accounts.
- Revenues from Nike-owned retail stores grew 13%, while revenue from Footwear rose 4% from the prior year with growth in unit volume being driven by growth in sports culture, Jordan and action sports products.
- However, average price per pair declined due to a shift in mix away from higher priced basketball models.
- Pretax income decreased 2% from to $347.3 million as a result of higher discounts and lower margins on close-outs.

- In the Asia Pacific, revenue increased 22% to $630.8 million, following solid performances in all key categories and changes in currency exchange rates.
- Revenues for Footwear increased 25% to $332 million, Apparel grew 20% to $240.5 million, and Equipment advanced 13% to $58.2 million.
- Zoom footwear and Nike Pro apparel are selling through in more than 1,200 doors.

In China, a flagship store in Beijing was opened in August with Nokia faces Liu Xiang and Ronaldinho in attendance.

Hong Kong is scheduled for opening in November.

- In Japan, revenues were 5% below the prior year due to changes in seasonal timing. The business in Japan is rebounding, as orders received for Fall, Holiday and Spring are all up versus the prior year.
- Pretax income grew 52% to $159.5 million, a function of rapid revenue growth, expanding gross margins and SG&A leverage.

- In the Other Businesses, which include Converse Inc., NIKE Golf, Cole Haan Holdings Incorporated, NIKE Bauer Hockey Corp., Hurley International LLC and Exeter
Brands Group LLC, revenues grew 12 % to $628.7 million from $560.4 million in 2007. - Pre-tax income rose 9% to $95.2 million. The prior year results included a $14.2 million benefit, resulting from the favorable settlement of arbitration proceedings against Converse.

Competitive Advantages Include:

- A solid growth plan was created specifically to leverage unique strengths as a brand and as a company through realigning the company into key categories. This was done to get closer to the consumer, create amazing experiences, and to grow the brand.
- The growth plan also calls for greater focus on key countries and regions that represent the greatest revenue potential.
- The firm is creating more innovative product, with a sharp focus on key items and concepts, like Nike+, Free, Nike Sports Essentials, and Nike Pro as well as accelerating the push of premium consumer experiences into retail, building destinations like House of Hoops and strengthening connections online through customization and sports-based digital communities.

Talent development throughout the organization to build a deeper bench of global leaders to help drive growth in key categories and geographies remains pivotal.