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) September 18, 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 two press releases on September 18,
1995 in the following order:
Beaverton, OR (September 18, 1995) -- NIKE, Inc. (NYSE:NKE) today
reported record revenues and earnings for the Company's first quarter
ended August 31, 1995. First quarter net income totaled $164.8 million,
or $2.26 per share, increases of 55 percent and 58 percent respectively,
compared to $106.0 million or $1.43 per share in last year's first
quarter. Worldwide revenues increased 38 percent to a record $1.61
billion compared with $1.17 billion last year.
The Company also reported worldwide orders for athletic footwear
and apparel scheduled for delivery between September 1995 and
January 1996 total a record $2.3 billion, 32 percent higher than such
orders for the same period last year. Worldwide futures orders were
not materially impacted by the change in the value of the U.S.
dollar compared to year-ago levels.
The Company also announced that its Board of Directors has approved a
two-for-one stock split pending shareholder approval of the required
increase in the number of authorized Class A and Class B Common shares.
The vote on the increase in authorized shares is expected to take place
at the Company's Annual Shareholders' Meeting scheduled for later today.
The stock split would be in the form of a 100 percent stock dividend to
be paid on October 30, 1995 to shareholders of record at the close of
business on October 9, 1995.
NIKE Chairman Philip H. Knight stated, "The strength of the NIKE brand
is evident in our outstanding financial performance and the resultant
increase in the price of our stock over the past 12 months. We believe
this stock split will benefit both current and future NIKE shareholders
by making our stock more accessible to individual investors and
improving liquidity.
"The NIKE brand remains on a strong growth path. Our U.S. footwear
business continues to show great breadth across a wide variety of
categories and our U.S. apparel business is rapidly moving to another
level in its growth curve. We're particularly pleased with the progress
of our international business where key markets such as France and Japan
have rebounded and begun to make significant contributions to our global
business.
"We continue to see exceptional balance across our U.S. athletic
footwear business with all categories posting increases for the
quarter. Women's fitness revenues grew 16 percent in the quarter,
men's cross-training was up 19 percent and men's basketball was up
six percent. Our men's tennis category showed explosive growth,
growing 92 percent in the first quarter.
"NIKE apparel continues to grow at a record pace, particularly in the
U.S. where our efforts to extend the brand across a broader base have
been extremely well received by consumers. That success is evident in
the 93 percent increase in our U.S. apparel business in the first
quarter.
"Our business outside the U.S. continues to gain momentum as
international revenues grew 36 percent in the first quarter.
Despite lower revenues in Germany, international revenues increased
22 percent, excluding incremental revenues from newly-owned NIKE
subsidiaries in Korea and Argentina and the favorable effect of a
weaker dollar.
"We are encouraged by the pace of worldwide futures orders,
particularly in light of the 28 percent increase recorded for
the same period last year. This acceleration was driven, in large
part, by strong futures orders for both our international and U.S.
apparel businesses. In U.S. footwear, men's basketball was up 14
percent, women's fitness was up 17 percent, outdoor was up 13 percent
and men's tennis grew 42 percent."
In the first quarter, U.S. athletic footwear and apparel revenues
totaled $974.0 million, an increase of 30 percent. International
athletic footwear and apparel revenues increased 36 percent to
$492.7 million. Revenues from other brands, which includes Canstar
Sports, Cole Haan(R), Tetra Plastics and Sports Specialties, increased
151 percent. Excluding Canstar, revenues from other brands would
have increased 24 percent.
Consolidated gross margins for the quarter were 40.1 percent compared
to 40.2 percent last year. Selling and administrative expenses were
22.3 percent of first quarter revenues, compared with 25.0 percent
last year.
NIKE's balance sheet remained very strong. The current ratio at
August 31, 1995 was 1.9 to 1. Cash and short-term investments
totaled $178.6 million. Total U.S. footwear inventory units ended
the quarter up 62 percent from August 31, 1994 and down 17 percent
from May 31, 1995.
As of August 31, 1995, the Company had purchased a total of 5.1
million shares of NIKE's Class B Common Stock for approximately
$302 million in the open market in conjunction with the $450 million,
three-year share repurchase program approved in July, 1993.
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.
Wholly-owned NIKE subsidiaries include Canstar Sports, the world's
leading manufacturer of hockey equipment; Cole Haan, which markets
a line of high-quality men's and women's dress and casual shoes; and
Sports Specialties, which markets a full line of licensed headwear.
Total revenues for the trailing twelve months ended August 31, 1995
were $5.2 billion.
Three Months Ended
August 31, 1995 August 31, 1994
(in thousands, except per share data)
Revenues $1,614,649 $1,170,355
Net income $164,781 $105,987
Net income per share $2.26 $1.43
Average common shares outstanding 72,926 74,222
NIKE, INC. Quarter Ending
QTR FINL STMT 8/31/95 8/31/94
Revenues $1,614,649 $1,170,355
Costs & Expenses
Cost of Sales 967,522 700,447
SG & A 359,525 292,294
Interest Exp 11,377 4,757
Other 8,344 (830)
Total Costs 1,346,768 996,668
_________ ________
Pre Tax 267,881 173,687
Taxes 103,100 67,700
_________ ________
Net Income 164,781 105,987
Income Per Share $ 2.26 $ 1.43
========= =========
Dividend $ 0.25 $ 0.20
Number of Shares 72,926 74,222
===============================================================================
Balance Sheet
Assets
Cash & St Invest 178,556 614,048
Accounts Rec 1,192,172 805,040
Inventory 676,417 419,849
Deferred Taxes 68,682 40,576
Prepaid Expenses 87,300 51,076
_________ ________
Current Assets 2,203,127 1,930,589
_________ _________
Fixed Assets 934,801 661,478
Depreciation 352,091 248,614
_________ _________
Net 582,710 412,863
_________ _________
Identifiable Intangible Assets and Goodwill 490,872 171,328
Other Assets 46,707 32,074
_________ _________
TOTAL ASSETS $3,323,416 $2,546,855
========= =========
Liab and Equity
Current LT Debt 3,237 2,603
Notes Payable 325,937 163,159
Accounts Payable 367,797 209,151
Accrued Liab 338,902 189,150
Inc Taxes Payable 109,397 66,058
_________ ________
Current Liability 1,145,270 630,121
Long Term Debt 14,082 13,652
Non-Curr Deferred Tax 17,921 23,580
Other Non-Curr Liability 42,952 41,477
Preferred Stock 300 300
Common Equity 2,102,891 1,837,725
_________ _________
TOTAL LIAB & EQTY $3,323,416 $2,546,855
Beaverton, OR (September 18, 1995) -- NIKE, Inc. (NYSE:NKE) today
reported that its shareholders have approved an increase in the number
of authorized Class A and Class B Common shares, allowing the Company to
effect a two-for-one stock split. Approval of the share increase was
announced earlier today at the Company's annual Shareholders' Meeting at
its World Headquarters in Beaverton, Oregon.
Shareholders voted to increase the Company's authorized Class A shares
from 60 million to 110 million and the authorized Class B shares from
150 million to 350 million.
The stock split will be in the form of a 100 percent stock dividend to
be paid on October 30, 1995 to shareholders of record at the close of
business on October 9, 1995.
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. Wholly-owned NIKE
subsidiaries include Canstar Sports, the world's leading manufacturer of
hockey equipment; Cole Haan, which markets a line of high-quality men's
and women's dress and casual shoes; and Sports Specialties, which
markets a full line of licensed headwear. Total revenues for the
trailing twelve months ended August 31, 1995 were $5.2 billion.
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act
of 1934, the Registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
NIKE, Inc.
(Registrant)
Date: September 27, 1995
By /s/ Robert S. Falcone
Vice President and
Chief Financial Officer