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 14, 1996
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 14, 1996:
Beaverton, OR (March 14, 1996) -- NIKE, Inc. (NYSE:NKE) today reported
record revenues and earnings for the Company's third quarter ended
February 29, 1996. Third quarter net income totaled $113.7 million, or
$0.78 per share, increases of 19 percent and 20 percent respectively,
compared to $95.3 million or $0.65 per share in last year's third
quarter. Worldwide revenues increased 33 percent to a record $1.49
billion compared with $1.12 billion last year.
The Company also reported worldwide orders for athletic footwear and
apparel scheduled for delivery between March and July 1996 total a record
$3.4 billion, 38 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 39 percent.
NIKE Chairman Philip H. Knight said, "This marks our sixth consecutive
quarter of strong double-digit growth in both revenues and earnings.
During that period, we have solidified the presence of the NIKE brand
with a focused effort on new and innovative product in all areas of our
business. At the same time, we continue to develop our skills in
bringing the power of the NIKE brand to markets outside the U.S., where
sales for the trailing 12 months surpassed the $2 billion level for the
first time.
"Excluding the positive effect of a weaker U.S. dollar, third quarter
international revenues grew 42 percent. All three of our international
regions -- Europe, Asia Pacific and the Americas -- saw healthy double-
digit growth in the quarter. This balanced growth throughout the regions
supports our conviction that the NIKE brand is becoming truly global and
that markets outside the U.S. still provide us with our greatest
opportunities for growth.
"In the U.S., we continue to see strong consumer acceptance for the
brand. Third quarter revenues for three footwear categories -- men's
basketball, men's training and women's fitness -- each topped $100
million. The women's sport category remains one of our fastest growing
segments, with revenues increasing 58 percent in the quarter. Our U.S.
apparel business continues on a record pace, with revenues topping the
$200 million mark in a quarter for the first time.
"The strength in our futures orders illustrates that innovative product
continues to drive consumer demand in the face of extremely challenging
comparisons. Our growing presence in women's footwear, where U.S.
futures orders were up 55 percent, is potent evidence that we can
continue to grow the NIKE brand despite the market share gains we have
already achieved.* These futures orders also reflect excellent initial
retailer reaction to our new footwear featuring the Zoom Air technology
which we will introduce at retail this summer."
In the third quarter, U.S. athletic footwear and apparel revenues totaled
$887.1 million, an increase of 23 percent. International athletic
footwear and apparel revenues increased 44 percent to $498.9 million.
Revenues from other brands, which includes Canstar Sports, Cole Haan(R),
Tetra Plastics and Sports Specialties, increased 84 percent. Excluding
Canstar, which was acquired in February 1995, revenues from other brands
would have increased 17 percent.
Consolidated gross margins for the quarter were 39.5 percent compared to
39.7 percent last year. Selling and administrative expenses were 25.7
percent of third quarter revenues, compared with 24.7 percent last year.
NIKE's balance sheet remained very strong. The current ratio at
February 29, 1996 was 1.9 to 1. Cash and short-term investments totaled
$259.5 million. Total U.S. footwear inventory units ended the quarter up
37 percent from February 28, 1995 and down 3 percent from November 30,
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 12
months ended February 29, 1996 were $5.96 billion. All per share data
reflects the Company's 2-for-1 stock split which became effective October
30, 1995.
*The marked items are forward-looking statements that involve risks and
uncertainties detailed from time to time in reports filed by NIKE with
the S.E.C., including Forms 8-K, 10-Q, and 10-K.
Three Months Ended Nine Months Ended
2/29/96 2/28/95 2/29/96 2/28/95
In Thousands Except Per Share Data
Revenues $1,491,611 $1,124,697 $4,549,287 $3,348,798
Net Income $ 113,749 $ 95,349 $ 396,746 $ 286,275
Income per Share $0.78 $0.65 $2.71 $1.94
Number of Shares 147,106 146,964 146,492 147,388
NIKE, Inc.
QTR FINL STMT Quarter Ending
2/29/96 2/28/95
Revenues $1,491,611 $1,124,697
Cost and Expenses
Cost of Sales 902,376 678,404
S G & A 382,717 278,311
Interest Expense 11,638 6,257
Other 9,831 5,376
Total Costs 1,306,562 968,348
_________ _________
Pre Tax 185,049 156,349
Taxes 71,300 61,000
_________ _________
Net Income 113,749 95,349
Income Per Share $0.78 $0.65
_________ ________
Dividend $0.15 $0.13
Number of Shares 147,106 146,964
===========================================================================
Balance Sheet
Assets
Cash and St Invest $ 259,497 $ 242,747
Accounts Rec 1,169,068 930,592
Inventory 880,593 627,983
Deferred Taxes 79,687 53,337
Prepaid Expenses 108,826 65,304
_________ _________
Current Assets 2,497,671 1,919,963
_________ _________
Fixed Assets 995,509 821,018
Depreciation 378,986 315,196
_________ _________
Net 616,523 505,822
_________ _________
Identifiable Intangible Assets and Goodwill 480,765 498,751
Other Assets 47,545 38,797
_________ _________
Total Assets $3,642,504 $2,963,333
========= =========
Liab and Equity
Current L/T Debt $2,641 $5,026
Notes Payable 529,823 354,840
Accounts Payable 359,253 276,330
Accrued Liability 377,683 257,976
Inc Taxes Payable 32,113 12,960
_________ _________
Current Liab 1,301,513 907,132
Long Term Debt 13,647 69,353
Non-Curr Deferred Tax 6,599 30,530
Other Non-Curr Liab 34,326 37,671
Preferred Stock 300 300
Common Equity 2,286,119 1,918,347
_________ _________
Total Liab & Equity $3,642,504 $2,963,333
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: March 29, 1996
By /s/ Robert S. Falcone
Vice President and
Chief Financial Officer