Quarterly revenues increased 7% with 2 percentage points of growth from currency. For the fiscal year, pre-tax income for the region grew 17% to $484. For the year, reported revenues grew 11% with one point of growth from currency. In China revenue increased 29% in fiscal ''07. By 2009, China is expected to become Nike’s second largest market in the world. In Japan, Nike’s business and brand position have improved over the last 18 months. Revenues were up slightly for both the quarter and full year.

In Europe every country in the region saw growth in their futures orders except the UK and France. Fourth-quarter revenues increased 12% with 9 points of growth from currency changes. For the year, revenues for the region grew 9% with 6 points of growth from currency. The emerging market countries were up over 30%, driven by strong results in Greece, Russia and Turkey. Fourth quarter pre-tax income for the European region grew 29%, while for all of fiscal 2007, the region delivered pre-tax income of over $1 billion, up 4% versus the prior year.

The Americas region reported flat revenues for the fourth quarter as top world cup comparisons and softness in Brazil offset positive trends elsewhere. Fourth quarter pre-tax income for the Americas region grew 20%. For the year, revenues grew 5% with one point of growth coming from currency changes. For the year, pre-tax income grew 9% to $187 million driven by higher revenues in gross margins partially offset by investments in demand creation and infrastructure.

For the year, Nike demand creation spending grew 10%.

Currency changes accounted for three points of that growth. The remainder was driven by advertising campaigns by Nike Air, Nike Plus and Nike Pro. Fourth quarter demand creation spending fell 10%, reflecting lower demand creation spending versus last year''s World Cup campaign. Operating overhead grew 14% for the year, five points of growth came from the change in stock option accounting with an additional two points of growth due to currency changes.

For the year, net interest income was $67 million, or $30 million more than last year.

The improvement was due to both higher levels of invested cash and higher interest rates. For the fourth quarter, other expense was $12 million, primarily due to losses on currency hedges. For the year, other income was about $1 million. The combination of currency hedge losses and favorable translation of foreign currency denominated profits from company’s international businesses. The effective tax rate for the year was 32.2%, an improvement of 2.8 points versus last year..

Fiscal 2008 financial forecast

Revenue growth is expected to be at the top end of the company’s high single-digit target range. Nike anticipates modest growth in gross margins as the benefits of clean inventories and continued progress on gross margin initiatives offset cost pressures from Asia. For the year, SG&A is expected to grow about in line with revenue. The company is planning to continue to leverage operating overhead spending against core functions and is also targeting ongoing improvement in working capital efficiency. The company continues to focus on achieving tax efficiencies across global operations, estimating that fiscal ''08 effective tax rate will be 50 to a 100 basis points below the fiscal 2007 rate.

Key questions and answers from the fourth quarter earnings call conducted by Nike Inc. on June 26, 2007.

Robby Ohmes (Banc of America Securities): In the futures orders, can you give us the ASP break out for the US and for Europe?

Don Blair: We are seeing still some slightly lower ASP’s on the futures order book, and as we said earlier, most of that’s really a mix driven impact. We are seeing pretty much consistent performance out of the very top end of our price range. But we are seeing very strong growth at our products like kids and as I said our sandal business has been really strong. So, combination of those mix impacts, we are seeing a little bit of lower ASPs worldwide.

Robby Ohmes (Banc of America Securities): Can you give us any sense on the relative strength by channel for the US futures?

Charlie Denson: I would say that it''s relatively strong across the board. In the US, we got strong performance in every channel. So, we''ve got people that are continuing to grow at a great cliff and then obviously there is a few within each of the channels that are, I wouldn''t say they are down, but they are not growing as fast.

Robby Ohmes (Banc of America Securities): When should we be thinking about when the category alignment would start to benefit your numbers?

Charlie Denson: We think it''s starting to benefit as we speak in the way we are approaching the business and some of the decisions that we are making. That the first full blown category led seasonal initiative will probably come to market somewhere around spring ''09 or fall ''08. But there, the alignment is starting to inform our decision makings literally right up the back.

Jeffrey Edelman (UBS): We think about the orders and about the channels and about what you are talking about the efforts to create excitement with some of the mall based retailers. Is that embedded in some of the futures growth?

Charlie Denson: Not really, not yet, because there is nothing out there yet with other than some announcements and some directional arrows. So, nothing is being reflected in the futures numbers. We are still working on plans on as to what it represents over the next 12 to 18 months.

Jeffrey Edelman (UBS): Could you give us a sense why there is such a spread in the currency differential between your fourth quarter sales and first half futures?

Don Blair: Which one are you talking about, because we have about ten?

Jeffrey Edelman (UBS): European fourth quarter sales reported constant dollars and then European futures reported constant dollars. Can you repeat the question for me?