SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 16, 1995
NIKE, INC.
(Exact name of registrant as specified in its charter)
Oregon 1-10635 93-0584541
(State of incorporation) (Commission File (IRS Employer
Number) Identification No.)
One Bowerman Drive, Beaverton, Oregon 97005-6453
(Address of principal executive offices) (Zip Code)
(503) 671-6453
(Registrant's telephone number, including area code)
Item 5. OTHER EVENTS
The Registrant issued the following press release on March 16,
1995
Beaverton, OR (March 16, 1995) -- NIKE, Inc. (NYSE:NKE) Chairman
Philip H. Knight today announced results of NIKE's third quarter which
ended February 28, 1995. Net income totaled $95.3 million or $1.29
per share, increases of 51 percent and 52 percent respectively, compared
with $63.2 million or $0.85 per share in last year's third quarter.
Worldwide revenues increased 29 percent to a record $1.12 billion
compared with $871.8 million last year.
The Company also announced worldwide orders for athletic footwear
and apparel scheduled for delivery between March and July 1995 total
a record $2.4 billion, 37 percent higher than such orders for the same
period last year. Had the U.S. dollar remained constant at year-ago
levels, worldwide futures orders would have increased 34 percent.
Mr. Knight stated, "The NIKE brand continues to achieve new levels of
acceptance throughout both athletic footwear and apparel. These record
third quarter results reflect our focused efforts to build NIKE brand
strength across all categories. Our revenues are more balanced than at
any point in our history and demand for the NIKE brand continues to grow.
"This strength is evident in our U.S. footwear business where
unprecedented consumer demand is driving our business to new levels.
Women's fitness grew 39 percent as we continue to gain market share in
this important category. Our outdoor business was up by more than 40
percent for the fourth consecutive quarter. Men's basketball, our
largest category in the U.S., continues to bounce back, with sales up
22 percent in the quarter.
"Our U.S. apparel business recorded another exceptionally strong quarter,
growing by 39 percent. The momentum of the NIKE brand is clearly
carrying through to our apparel business and we see that growth
continuing into the back-to-school season.
"Our international operations maintained a strong pace with revenues
growing 33 percent. While we continue to see difficult revenue
comparisons in Germany, the balance of our international business,
excluding new NIKE-owned subsidiaries in Korea and Argentina, grew
by 16 percent in constant dollars."
In local markets throughout the world, the NIKE brand is growing
substantially. Revenues in constant dollars increased 42 percent
in Italy, 40 percent in Canada, and 28 percent in Australia, reflecting
the NIKE commitment to building the brand on a global basis with product
that meets the demand of each local market.
The strong performance of the NIKE brand across a wide variety of
categories continues to stimulate record futures orders. All U.S.
footwear categories recorded double-digit increases in futures orders,
with women's fitness up 31 percent, men's basketball up 37 percent, and
outdoor up 44 percent. Men's tennis was also up sharply, with futures
orders almost three times that of the year ago period. U.S. apparel
futures orders were also up sharply.
In the third quarter, U.S. athletic footwear and apparel revenues totaled
$721.6 million, an increase of 28 percent. International athletic
footwear and apparel revenues increased 33 percent to $345.7 million.
Excluding the positive effect of a weaker U.S. dollar and the incremental
revenues from the new NIKE-owned subsidiaries, international revenues
would have increased 12 percent. Revenues from other brands, which
include Cole Haan, Tetra Plastics and Sports Specialties, increased
16 percent to $57.4 million.
Consolidated gross margins for the quarter were 39.7 percent compared
to 38.4 percent last year. Total U.S. footwear inventory units ended
the quarter up 11 percent from November 30, 1994.
Selling and administrative expenses were 24.7 percent of third quarter
revenues, compared with 26.5 percent in last year's third quarter.
Spending in absolute dollars increased $47.0 million or 20 percent from
last year's third quarter. NIKE's international operations accounted
for $24 million of the increase including $8 million from the new NIKE-
owned countries. U.S. spending increased $19 million.
As of February 28, 1995, the Company had purchased a total of
4.0 million shares of NIKE's Class B Common Stock for approximately
$211 million in the open market in conjunction with the $450 million,
three-year share repurchase program approved in July 1993.
NIKE's balance sheet remained very strong. The current ratio at
February 28, 1995, was 2.1 to 1. Cash and short-term investments
decreased to $242.7 million, reflecting NIKE's acquisition of Canstar
Sports Inc. during the third quarter.
NIKE, Inc., based in Beaverton, Oregon, is the world's leading designer
and marketer of authentic athletic footwear, apparel and accessories
for a wide variety of sports and fitness activities. On February 13,
1995, NIKE completed the acquisition of Montreal-based Canstar Sports
Inc., the world's largest hockey equipment manufacturer, making Canstar
a wholly-owned subsidiary of NIKE. The company also markets a line of
high-quality men's and women's dress and casual shoes through its Cole
Haan subsidiary based in Yarmouth, Maine and a full range of licensed
headwear through its Sports Specialties subsidiary based in Irvine,
California. Total revenues for the trailing twelve months ended
February 28, 1995, were $4.4 billion.
Three Months Ended Nine Months Ended
Feb. 28, Feb. 28, Feb. 28, Feb. 28,
1995 1994 1995 1994
(In thousands, except per share data)
Revenues $1,124,697 $871,845 $3,348,798 $2,785,512
Net Income $ 95,349 $ 63,235 $ 286,275 $ 229,630
Net Income per Share $ 1.29 $ .85 $ 3.88 $ 3.03
Avg. Common Shares 73,482 75,149 73,694 75,853
SIGNATURES
Pursuant to the requirements of the Securities
Exchange Act of 1934, the Registrant has duly caused this
report to be signed on its behalf by the undersigned thereunto
duly authorized.
NIKE, Inc.
An Oregon Corporation
By: /s/ Robert S. Falcone
_______________________
Vice President, Chief
Financial Officer