320187--7/28/2006--NIKE

related topics

{stock, price, operating}

{operation, international, foreign}

{product, market, service}

{customer, product, revenue}

{regulation, change, law}

{system, service, information}

{property, intellectual, protect}

{personnel, key, retain}

{financial, litigation, operation}

{provision, law, control}

{condition, economic, financial}

{control, financial, internal}

{capital, credit, financial}

Special Note Regarding Forward-Looking Statements and Analyst Reports Our products face intense competition. If we are unable to anticipate consumer preferences and develop new products, we may not be able to maintain or increase our net revenues and profitability. We rely on technical innovation to compete in the market for our products. Failure to continue to obtain high quality endorsers of our products could harm our business. Failure of our contractors to comply with our code of conduct, local laws, and other standards could harm our business. Our business is affected by seasonality, which could result in fluctuations in our operating results and stock price. Futures orders may not be an accurate indication of our future revenues. Our futures ordering program does not prevent excess inventories or inventory shortages, which could result in decreased operating margins and harm to our business. We may be adversely affected by the financial health of our retailers. Failure to adequately protect our intellectual property rights could adversely affect our business. We are subject to periodic litigation and other regulatory proceedings, which could result in unexpected expense of time and resources. Our international operations involve inherent risks which could result in harm to our business. Currency exchange rate fluctuations could result in higher costs and decreased margins. Our products are subject to risks associated with overseas sourcing, manufacturing, and financing. Our success depends on our global distribution facilities. We rely significantly on information technology in our supply chain, and any failure, inadequacy, interruption or security failure of that technology could harm our ability to effectively operate our business. We depend on key personnel, the loss of whom would harm our business. The sale of a large number of shares held by our Chairman could depress the market price of our common stock. Anti-takeover provisions may impair an acquisition of the company or reduce the price of our common stock. We may fail to meet analyst expectations, which could cause the price of our stock to decline.

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320187--7/28/2006--NIKE_INC