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) January 9, 1998
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 February 23, 1998:
NIKE NAMES NEW APPAREL VP
Beaverton, Ore. (Feb. 23, 1998) Stephen Gomez, global vice president of
apparel at NIKE, Inc. and a leader in the development of team sports and
apparel categories at the sports company, has announced his departure.
Gomez, who has worked for NIKE for more than 17 years, cited personal
reasons for his decision.
Gomez will be succeeded by another long-term NIKE player, Matt Wolff,
currently vice president and GM of apparel operations.
NIKE president and COO, Tom Clarke, issued the following statements to NIKE
employees regarding Gomez departure and Wolff's appointment:
It is with personal sadness that I must announce that Stephen Gomez,
global vice president of apparel, has chosen to leave NIKE after more than
17 years.
For personal reasons, Stephen has decided to pursue a career shift,
something he has contemplated for many years.
Few people at NIKE have contributed as much as Stephen. He began with us
in 1981 as a Shoe U trainee in Exeter, New Hampshire. From 1982-85 he was a
PLM for kids footwear. Stephen also worked as a marketing manager in New
York and as GM for European Apparel.
Stephen was the first captain of our Organized Team Sports area, which
solidified our presence on the field and on the courts in American
collegiate sports. That effort was one of many at the beginning of this
decade that helped to turbo charge our business growth.
As vice president of global apparel, Stephen led the effort to change how
we were doing our apparel business. As a result of that reorganization and
a terrific effort by the entire global apparel team, NIKE's apparel
business has grown from $684 million in 1993 to almost $3 billion worldwide
today. Last week, Fortune Magazine named NIKE the #1 Most Admired Apparel
Company. That was a capping tribute to Stephen and his team.
The true sign of a great leader is the team she or he puts in place for
succession. For that reason, it gives me great confidence to name Matt
Wolff as GM and global vice president of apparel. Matt is currently vice
president and GM of apparel operations. He has been a member of the NIKE
team since 1979, starting as director of apparel in Taipei, Taiwan. He
became general manager of European Apparel Operations in 1989 and VP and GM
of apparel operations in 1993. Matt's exampling of NIKE values and his
broad knowledge of the apparel business has earned him the great respect of
his peers and those who work with him in NIKE Apparel.
Stephen is a great friend of mine and many of you here at NIKE. He will
stay on here until April 1 to help Matt with his transition. In the
meantime, please join me in wishing him well in his next professional
pursuits. We'll look forward to seeing him out on our runs in Portland, and
at certain restaurant establishments in Northwest Portland.
The Registrant issued the following press release on February 24, 1998:
NIKE SEES THIRD QUARTER EARNINGS LOWER
THAN ANALYSTS' CONSENSUS ESTIMATES
Beaverton, OR (February 24, 1998) -- NIKE, Inc. (NYSE:NKE) today announced
that it expects diluted earnings for the third quarter ending February 28,
1998 will be between $0.24 and $0.28 per share, below the First Call
consensus estimate of $0.38, and that earnings for the full year will be
below the previously stated range of $2.00 - $2.15 per share. The Company
expects to report third quarter results the third week of March.*
The Company is experiencing higher than anticipated order cancellation
rates in the Asia Pacific region, as the retail environment there remains
weak. Aggressive pricing of close-out inventories, particularly in Japan,
has also negatively impacted revenues and gross margins.
In the USA region, higher levels of close-out sales continue to negatively
impact gross margins, as the Company works aggressively to improve its
inventory situation.
The Company is examining its overall cost structure and plans to take
actions, including realignments and reductions in its global workforce,
aimed at improving profitability and increasing shareholder value without
compromising its long-term growth opportunities. These actions will likely
result in a restructuring charge in the fiscal year ending May 31, 1998.*
* The marked paragraphs are forward-looking statements that involve risks
and uncertainties that could cause actual results to differ materially.
These risks and uncertainties are detailed from time to time in reports
filed by NIKE with the S.E.C., including Forms 8-K, 10-Q, and 10-K.
NIKE's earnings releases and other financial information are available on
the Internet at NIKEBiz.com.
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: February 26, 1998
By /s/ Robert E. Harold
Chief Financial Officer