The ratings for Nike Inc. are based on the company's strong No. 1 market share in U.S. athletic footwear and its leading positions internationally, as well as its solid financial profile. Somewhat offsetting these strengths is the company's exposure to changing consumer preferences in this very competitive, marketing-intensive industry. Nike and other industry participants have faced a difficult operating environment since the end of 1997. Demand for athletic footwear and apparel in the key U.S. market has been sluggish, as consumers have significantly reduced their purchases of these products following several years of solid growth. However, Nike's brand strength persists. Its U.S. market share continues to be more than twice that of its nearest competitor because of successful new product
