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NIKE ANNOUNCES RECORD SECOND-QUARTER EARNINGS; FUTURES ORDERS INCREASE EIGHT PERCENT

 NIKE ANNOUNCES RECORD SECOND-QUARTER EARNINGS;
 FUTURES ORDERS INCREASE EIGHT PERCENT
 BEAVERTON, Ore., Dec. 16 /PRNewswire/ -- NIKE Inc. (NYSE, PSE: NKE) continued to demonstrate its dominance of the sports and fitness industry today by announcing record second quarter net income and revenues.
 NIKE's net income for the three month period which ended Nov. 30, 1991, was $61,535,000 or 80 cents per share, an increase of 6 percent from the $58,081,000 or 77 cents per share earned during the same period last year.
 The company's worldwide orders for athletic footwear and apparel scheduled for delivery between December 1991 and April 1992 total approximately $1.4 billion, eight percent higher than the same period last year.
 Revenues for the quarter increased 15 percent to $743,417,000, up from $648,828,000 in the prior year. U.S. athletic footwear revenues declined 2 percent to $343,504,000. U.S. athletic apparel revenues were $73,086,000, up 2 percent. International footwear and apparel revenues were $286,383,000, up 49 percent. Revenues from other brands, which include Cole Haan(R), SIDE 1(R), i.e.(TM) and Tetra Plastics, grew 18 percent to $40,444,000.
 Chairman Philip H. Knight added, "NIKE's leading position in the sports and fitness industry is clearly illustrated by these results. One year ago, we committed ourselves to continue aggressively supporting retailers through innovative products, extensive advertising and in-store programs. This support has kept NIKE in the number one position in major categories like basketball, running and cross training while simultaneously allowing us to grow in new areas like women's fitness and outdoor cross training.
 "The success of NIKE's relentless strategy of innovation and superior retailer support is reflected in the strong 8 percent increase in our worldwide futures orders for the next five months at the same time our major competitors have announced declines in their orders. Although the U.S. economy may have a slow recovery ahead, NIKE's momentum is healthy, and our worldwide opportunities remain very bright."
 Consolidated gross margin for the second quarter was 38.7 percent, compared to 37.3 percent last year, reflecting the strong demand for NIKE products combined with sound inventory management. U.S. footwear inventory levels finished the quarter at 10.7 million pair, almost unchanged from the 10.8 million pair at the end of last quarter. Selling and administrative expenses were 24.4 percent of second quarter revenues, compared to 22.0 percent last year.
 NIKE's U.S. athletic footwear revenues were lower during the quarter due to the extreme caution exercised by retailers when placing futures orders six months ago. As a result, the company was not able to fulfill the continued high consumer demand out of available inventory. However, NIKE's new outdoor cross training products created excitement in the market and quickly established this category as a significant growth area for the future. Also encouraging was the growth in NIKE's innovative new women's fitness products which increased 22 percent and continued to gain market share in the key categories of aerobics and walking. Within NIKE's U.S. apparel revenues of $73.1 million, kid's business tripled, and basketball products increased 17 percent from last year's levels.
 NIKE's international revenue increase of 49 percent was fueled largely by growth in Europe. The countries showing the strongest growth during the quarter were Germany, up 73 percent, France, up 63 percent, Italy, up 138 percent and Spain, up 83 percent. Outside of Europe, revenues grew 106 percent in Latin America and 84 percent in Asia Pacific. Had the dollar remained constant at year-ago levels, international revenues would have increased 61 percent.
 NIKE's financial position strengthened further during the period as lower inventory levels and strong cash flows reduced short-term borrowing needs. The current ratio at Nov. 30 was 2.8 to 1. Long- term debt to equity remained very low at six percent.
 NIKE Inc., based in Beaverton, is the world's leading designer and marketer of authentic athletic footwear, apparel and accessories for a wide variety of sports and fitness activities. The company also markets a line of high-quality men's and women's dress and casual shoes through it Cole Haan subsidiary based in Yarmouth, Maine. Worldwide revenues for the trailing 12-month period ended Nov. 30, 1991 total $3.2 billion.
 Independent securities analysts who follow NIKE stock include:
 Willard Brown, Dean Witter Reynolds, 212-392-8591;
 Marie DeLucia, Tucker Anthony, 212-225-8066;
 Josie Esquivel, Shearson, Lehman Brothers, 212-298-2157;
 Brenda Gall, Merrill Lynch, 212-449-1915;
 Cathleen Mackey, Dillon Read & Co., 212-906-7299;
 Jay Meltzer, Goldman Sachs, 212-902-6737;
 Frank Podbelsek, Gruntal & Co., 213-288-7052;
 John Rogers, Ragen MacKenzie, 206-464-8820;
 Alice Ruth, Montgomery Securities, 800-227-4786;
 Heidi Steinberg, Salomon Brothers, 212-783-6670
 NIKE INC.
 (In thousands, expect per-share data)
 Three months ended Six months ended
 Ended Nov. 30: 1991 1990 1991 1990
 Revenues $743,417 $648,828 $1,690,578 $1,482,435
 Net income $ 61,535 $ 58,081 $ 175,972 $ 157,735
 Net income per share $ .80 $ .77 $ 2.30 $ 2.08
 Avg shares outstanding 76,564 75,874 76,384 75,949
 -0- 12/16/91
 /CONTACT: Ron Parham (analysts), 503-671-3079 or Liz Dolan (press), 503-671-3509, both of NIKE Inc./
 (NKE) CO: NIKE Inc. ST: Oregon IN: HOU SU: ERN


JH-LA -- SE005 -- 2373 12/16/91 09:05 EST
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