Selected Quarterly Financial Data
## Table 0 ##
Item 7.
Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview NIKE designs, develops and markets high quality footwear, apparel, equipment and accessory products worldwide.
We are the largest seller of athletic footwear and apparel in the world and sell our products primarily through a combination of retail accounts, NIKE-owned retail, including stores and e-commerce, independent distributors, franchisees and licensees worldwide.
Our goal is to deliver value to our shareholders by building a profitable global portfolio of branded footwear, apparel, equipment and accessories businesses.
Our strategy is to achieve long-term revenue growth by creating innovative, “must have” products; building deep personal consumer connections with our brands; and delivering compelling retail presentation and experiences.
We strive to convert revenue growth to shareholder value by driving operating excellence in several key areas: ?
Making our supply chain a competitive advantage, through operational discipline ?
Reducing product costs through a continued focus on lean manufacturing and product design that strives to eliminate waste ?
Improving selling and administrative expense productivity by focusing on investments that drive economic returns in the form of incremental revenue and gross margin, and leveraging existing infrastructure across our portfolio of brands to eliminate duplicative costs ?
Improving working capital efficiency ?
Deploying capital effectively to create value for our shareholders Through execution of this strategy, our long-term financial goal is to achieve: ?
High single-digit revenue growth ?
Mid-teens earnings per share growth ?
Increased return on invested capital and accelerated cash flows, and ?
Consistent results through effective management of our diversified portfolio of businesses
EMEA Region
## Table 1 ##
Fiscal 2009 Compared to Fiscal 2008 For the EMEA Region, changes in currency exchange rates negatively impacted revenue growth by approximately 2 percentage points in fiscal 2009.
Excluding changes in currency exchange rates, a number of markets within the region experienced lower revenues, reflecting a more difficult retail environment in these markets.
The U. K.  remained flat for fiscal 2009 while the emerging markets in the region grew 14%, driven by stronger results in Russia during the first half of fiscal 2009.
These results were offset by lower revenues in Southern European markets, including Spain, Italy and France.
Excluding changes in exchange rates, footwear revenues increased 4 percentage points during fiscal 2009.
The increase in footwear revenue was attributable to mid single-digit growth in unit sales, partially offset by a low single-digit decrease in the average selling price per pair.
The growth in unit sales was driven primarily by higher demand for NIKE brand sportswear and kids’ products.
The decrease in average selling price per pair was mainly attributable to higher customer discounts and a shift in product mix to lower priced product models, most notably higher volume of kids’ products.
On a currency neutral basis, EMEA apparel revenue decreased 4 percentage points during fiscal 2009, primarily driven by lower average selling prices resulting from a higher mix of close-out sales and higher levels of discounts provided retailers to manage inventory levels, which more than offset a mid single-digit increase in unit sales.
The year-over-year increase in pre-tax income for the EMEA Region during fiscal 2009 was primarily driven by a higher gross margin percentage, partially offset by slightly higher selling and administrative expenses as a percentage of revenues.
The gross margin improvement in fiscal 2009 was primarily attributable to improved year-over-year currency hedge rates which more than offset higher warehousing costs and discounts on in-line products.
The increase in selling and administrative expenses was mainly driven by retail expansion across the region.
Fiscal 2008 Compared to Fiscal 2007 For the EMEA Region, changes in currency exchange rates contributed 11 percentage points of the revenue growth during fiscal 2008.
Nearly all markets within the region increased revenues during the year.
The emerging markets in the region grew nearly 25%, driven by strong results in Russia, Turkey and South Africa.
Increases in Northern Europe and the U. K.  also contributed significantly to the revenue growth.
Excluding changes in exchange rates, footwear revenues increased 8 percentage points during fiscal 2008 compared to the prior year.
The increase in footwear revenue was attributable to double-digit growth in unit sales, partially offset by a low single-digit decrease in the average selling price per pair.
The growth in unit sales was driven primarily by higher demand for our NIKE brand soccer and sportswear products.
The decrease in
average selling price per pair resulted from a shift in product mix from higher priced to lower priced product models, most notably within our NIKE brand sportswear product lines.
On a currency neutral basis, EMEA apparel revenue increased 8 percentage points during fiscal 2008 compared to the prior year, primarily as a result of increased unit sales and a slight increase in average selling prices.
The increase in unit sales was driven primarily by increased demand for sports performance products, most notably soccer.
The increase in pre-tax income for the EMEA Region during fiscal 2008 compared to the prior year was primarily driven by the increase in revenues, favorable foreign currency translation and a higher gross margin percentage, partially offset by higher selling and administrative expenses as a percentage of revenues.
The gross margin improvement in fiscal 2008 was primarily attributable to improved year-over-year hedge rates and improved margins on close-out product.
The increase in selling and administrative expenses was driven by an increase in demand creation spending, primarily attributable to spending around the European Football Championships.
As a result of retail expansion and overall business growth across the region, operating overhead expenses increased for the year, but at a slower rate than revenue growth.
Asia Pacific Region
## Table 2 ##
Fiscal 2009 Compared to Fiscal 2008 In the Asia Pacific Region, changes in currency exchange rates contributed 3 percentage points of revenue growth for fiscal 2009.
Excluding changes in currency exchange rates, all countries across the region delivered revenue growth.
China continues to be the primary driver of growth within the region as fiscal 2009 revenues increased 22% on a currency-neutral basis, driven by expansion in both the number of stores selling NIKE products and sales through existing stores.
China’s rate of revenue growth slowed to 6% in the fourth quarter of fiscal 2009 as we lapped very strong growth in the fourth quarter of fiscal 2008.
On a currency neutral basis, revenues in Japan were up 1% compared to fiscal 2008.
Footwear and apparel revenue growth for fiscal 2009 were driven primarily by an increase in unit sales, most notably in China.
The growth in unit sales was slightly offset by a low-single digit reduction in average selling prices in fiscal 2009 resulting primarily from increased discounts on in-line products provided retailers to manage inventory levels.
The increase in pre-tax income for the Asia Pacific Region for fiscal 2009 was driven by higher revenues and improved gross margins, which more than offset higher selling and administrative expenses.
Gross margins improved versus the prior year, primarily driven by improved year-over-year standard foreign currency rates and reduced warehousing costs, which more than offset increased product discounts.
Selling and administrative expenses increased, but represented a lower percentage of revenues in fiscal 2009 versus fiscal 2008.
The increase in selling and administrative expenses during fiscal 2009 was primarily due to retail and infrastructure expansion, primarily in China, and spending around brand events.
product provided to the endorsers will depend on many factors including general playing conditions, the number of sporting events in which they participate, and our own decisions regarding product and marketing initiatives.
In addition, the costs to design, develop, source, and purchase the products furnished to the endorsers are incurred over a period of time and are not necessarily tracked separately from similar costs incurred for products sold to customers.
(2) We generally order product at least four to five months in advance of sale based primarily on advanced futures orders received from customers.
The amounts listed for product purchase obligations represent agreements (including open purchase orders) to purchase products in the ordinary course of business, that are enforceable and legally binding and that specify all significant terms.
In some cases, prices are subject to change throughout the production process.
The reported amounts exclude product purchase liabilities included in accounts payable on the consolidated balance sheet as of May 31, 2009.
(3) Other amounts primarily include service and marketing commitments made in the ordinary course of business.
The amounts represent the minimum payments required by legally binding contracts and agreements that specify all significant terms, including open purchase orders for non-product purchases.
The reported amounts exclude those liabilities included in accounts payable or accrued liabilities on the consolidated balance sheet as of May 31, 2009.
The total liability for uncertain tax positions was $273.9 million, excluding related interest and penalties, at May 31, 2009.
We are not able to reasonably estimate when or if cash payments of the long-term liability for uncertain tax positions will occur.
We also have the following outstanding short-term debt obligations as of May 31, 2009.
Please refer to the accompanying notes to the consolidated financial statements (Note 7 — Short-Term Borrowings and Credit Lines) for further description and interest rates related to the short-term debt obligations listed below.

<table><tr><td></td><td colspan="2">1st Quarter</td><td colspan="2">2nd Quarter</td><td colspan="2">3rd Quarter</td><td colspan="2"> 4th Quarter</td></tr><tr><td></td><td>2009</td><td>2008</td><td>2009</td><td>2008</td><td>2009</td><td>2008</td><td>2009</td><td> 2008</td></tr><tr><td></td><td colspan="8"> (Unaudited) (In millions, except per share data)</td></tr><tr><td>Revenues</td><td>$5,432.2</td><td>$4,655.1</td><td>$4,590.1</td><td>$4,339.5</td><td>$4,440.8</td><td>$4,544.4</td><td>$4,713.0</td><td>$5,088.0</td></tr><tr><td>Gross margin</td><td>2,562.1</td><td>2,087.0</td><td>2,050.0</td><td>1,921.1</td><td>1,948.5</td><td>2,047.9</td><td>2,043.8</td><td>2,331.4</td></tr><tr><td>Gross margin %</td><td>47.2%</td><td>44.8%</td><td>44.7%</td><td>44.3%</td><td>43.9%</td><td>45.1%</td><td>43.4%</td><td>45.8%</td></tr><tr><td>Restructuring charges</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>—</td><td>195.0</td><td>—</td></tr><tr><td>Goodwill impairment</td><td>—</td><td>—</td><td>—</td><td>—</td><td>199.3</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Intangible and other asset impairment</td><td>—</td><td>—</td><td>—</td><td>—</td><td>202.0</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Net income</td><td>510.5</td><td>569.7</td><td>391.0</td><td>359.4</td><td>243.8</td><td>463.8</td><td>341.4</td><td>490.5</td></tr><tr><td>Basic earnings per common share</td><td>1.05</td><td>1.14</td><td>0.81</td><td>0.72</td><td>0.50</td><td>0.94</td><td>0.70</td><td>1.00</td></tr><tr><td>Diluted earnings per common share</td><td>1.03</td><td>1.12</td><td>0.80</td><td>0.71</td><td>0.50</td><td>0.92</td><td>0.70</td><td>0.98</td></tr><tr><td>Weighted average common shares outstanding</td><td>487.2</td><td>499.4</td><td>483.7</td><td>497.6</td><td>484.0</td><td>493.9</td><td>484.8</td><td>491.4</td></tr><tr><td>Diluted weighted average common shares outstanding</td><td>494.9</td><td>507.3</td><td>489.8</td><td>506.2</td><td>488.1</td><td>502.5</td><td>489.4</td><td>500.1</td></tr><tr><td>Cash dividends declared per common share</td><td>0.23</td><td>0.185</td><td>0.25</td><td>0.23</td><td>0.25</td><td>0.23</td><td>0.25</td><td>0.23</td></tr><tr><td>Price range of common stock</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>High</td><td>70.28</td><td>60.35</td><td>68.00</td><td>66.57</td><td>57.33</td><td>67.93</td><td>57.14</td><td>70.60</td></tr><tr><td>Low</td><td>54.64</td><td>51.87</td><td>42.68</td><td>54.15</td><td>40.08</td><td>51.50</td><td>38.24</td><td>56.70</td></tr></table>
<table><tr><td></td><td> Fiscal 2009</td><td> Fiscal 2008</td><td>FY09 vs. FY08 % Change</td><td> Fiscal 2007</td><td> FY08 vs. FY07 % Change</td></tr><tr><td></td><td colspan="5"> (In millions)</td></tr><tr><td>Revenues</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Footwear</td><td>$3,136.7</td><td>$3,112.6</td><td>1%</td><td>$2,608.0</td><td>19%</td></tr><tr><td>Apparel</td><td>1,970.2</td><td>2,083.5</td><td>-5%</td><td>1,757.2</td><td>19%</td></tr><tr><td>Equipment</td><td>405.3</td><td>433.1</td><td>-6%</td><td>398.9</td><td>9%</td></tr><tr><td>Total Revenues</td><td>$5,512.2</td><td>$5,629.2</td><td>-2%</td><td>$4,764.1</td><td>18%</td></tr><tr><td>Pre-tax Income</td><td>$1,316.9</td><td>$1,281.9</td><td>3%</td><td>$1,050.1</td><td>22%</td></tr></table>
<table><tr><td></td><td> Fiscal 2009</td><td> Fiscal 2008</td><td>FY09 vs. FY08 % Change</td><td> Fiscal 2007</td><td> FY08 vs. FY07 % Change</td></tr><tr><td></td><td colspan="5"> (In millions)</td></tr><tr><td>Revenues</td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Footwear</td><td>$1,727.1</td><td>$1,499.5</td><td>15%</td><td>$1,159.2</td><td>29%</td></tr><tr><td>Apparel</td><td>1,322.3</td><td>1,140.0</td><td>16%</td><td>909.3</td><td>25%</td></tr><tr><td>Equipment</td><td>272.6</td><td>248.1</td><td>10%</td><td>227.2</td><td>9%</td></tr><tr><td>Total Revenues</td><td>$3,322.0</td><td>$2,887.6</td><td>15%</td><td>$2,295.7</td><td>26%</td></tr><tr><td>Pre-tax Income</td><td>$853.4</td><td>$694.2</td><td>23%</td><td>$515.4</td><td>35%</td></tr></table>

Question: What is the growing rate of Apparel for Revenues in the year with the most Net income for 1st Quarter?
Answer: -0.05438