Business News : Nike's Store Count Grows 13 Percent in Fiscal 2012

Nike Inc's worldwide store count grew to 826 in its year ended May 31, up from 729 at the end of its 2011 fiscal year, according to its just-released 10K. In the U.S., its store count rose to 384 from 363 at the close of its prior fiscal year.

By segment in the U.S., Nike factory stores increased to 156 from 150, Cole Haan stores (including factory stores) grew to 109 from 107, Converse stores (including factory stores) increased to 62 from 58, and Hurley stores (including factory and employee stores) reached 29, up from 20. Nike in-line stores (including NIKETOWNs and employee-only stores) stayed the same at 28 locations.

Outside the U.S., Nike Inc.'s store count grew to 442 from 393. Nike factory stores outside the U.S. reached 308 versus 243 at the close of the prior fiscal year, Nike in-line stores (including NIKETOWNs and employee-only stores) reached 65 against 66, and Cole Haan stores (including factory stores) stood at 69, down from 83.

Other findings in the report:

• During fiscal 2012, Nike Inc.'s three largest customers accounted for approximately 24 percent of sales in the United States, up from 23 percent a year ago;
• In fiscal 2012, sales in the United States including U.S. sales of its Other Businesses segment, accounted for approximately 42 percent of total revenues, compared to 43 percent in fiscal 2011;
• In fiscal 2012, 86 percent of its U.S. wholesale footwear shipments (excluding its Other Businesses segment) were made under its futures program, compared to 87 percent in fiscal 2011 and 89 percent in fiscal 2010. In fiscal 2012, 64 percent of its U.S. wholesale apparel shipments (excluding Other Businesses) were made under the futures program, compared to 60 percent in fiscal 2011 and 62 percent in fiscal 2010;
• In fiscal 2012, contract factories in Vietnam, China and Indonesia manufactured approximately 41 percent, 32 percent and 25 percent of total Nike Brand footwear, respectively. In the prior year, contract factories in Vietnam, China and Indonesia manufactured approximately 39 percent, 33 percent, and 24 percent of total Nike Brand footwear, respectively. 
• As of May 31, Nike Inc. had $3.83 billion in long contractual obligations around endorsement contracts, down from $4.4 billion in such obligations at the close of its fiscal 2011 year. By year as of May 31, $856,000 was owed in endorsement contracts in fiscal 2013, $804 million in 2014, $686 million in 2015; $491 million in 2016, $363 million in 2017 and $628 million thereafter;
•  As of May 31, 2012, it had 44,000 employees (which includes retail and part-time employees), up from 38,000 a year ago.

(SportsOneSource Media)

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