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NIKE ANNOUNCES THIRD-QUARTER EARNINGS RISE 7 PERCENT; WORLDWIDE FUTURES ORDERS INCREASE 21 PERCENT

 BEAVERTON, Ore., March 15 /PRNewswire/ -- NIKE Inc. (NYSE: NKE; PSE) today reported record third-quarter earnings totaling $89,471,000, or $1.16 per share, an increase of 7 percent from the $82,517,000, or $1.08 per share, earned during the same period last year.
 The company also announced worldwide orders for athletic footwear and apparel scheduled for delivery between March and July 1993 total approximately $1.65 billion, 21 percent higher than the same period last year. Had U.S. dollar exchange rates remained constant at year-ago levels, worldwide orders would have increased 26 percent. Because of the increase in the number of European customers participating in the "futures" program, these orders are not necessarily indicative of total revenues for subsequent periods because of the changing mix of "futures" and "at-once" shipments.
 NIKE Chairman Philip H. Knight commented, "We are especially pleased by the strength of our U.S. footwear business which grew 15 percent, our strongest quarter in two years, with even stronger growth likely next quarter. Solid increases in basketball, outdoor, cross-training and women's categories account for most of these gains.
 "Our international revenues grew 4 percent during the third quarter (11 percent on a constant-dollar basis) and are ahead 26 percent through the first nine months of fiscal 1993. As we announced last month, weak economies in Europe and a stronger U.S. dollar have reduced near-term growth prospects in Europe.
 "However, the company's aggressive strategies to invest in the NIKE brand and build a regional infrastructure in Europe remain intact. Our market share continues to increase, and our ownership position in key international markets gives us superior control in addressing the broader economic challenges within the region. Our efforts to install a true "futures" program in Europe are showing success. For fall 1993, nearly 70 percent of European footwear orders will be shipped under the futures program compared to approximately 50 percent today. Fully integrated automated information systems come on line this month to provide far greater communication and coordination between NIKE-owned countries. By 1997, we will have streamlined our warehousing operations in Europe, reducing the number of distribution facilities from the current 32 to only five.
 "Outside of Europe, the company's international momentum is strong. Revenues in the Asia/Pacific region increased 117 percent during the quarter, led by Australia which became a NIKE-owned operation in June 1992. Latin American revenues increased 33 percent.
 "As long as sports and fitness continues to be a cornerstone of modern culture, NIKE will have opportunities for growth. We see many such opportunities ahead and are prepared to compete aggressively for them."
 Consolidated revenues for the quarter increased 12 percent to $972.0 million from $867.0 million in the prior year. Every division recorded growth. Total U.S. athletic footwear and apparel revenues climbed 14 percent to $655.7 million with U.S. footwear revenues increasing 15 percent to $549.2 million and U.S. apparel revenues increasing 8 percent to $106.4 million.
 NIKE's total international sales grew 4 percent to a record $265.2 million. Had U.S. dollar exchange rates remained constant at year-ago levels, total international revenues would have increased 11 percent. International footwear sales declined 1 percent (increased 6 percent on a constant-dollar basis) to $204.1 million while international apparel sales gained 25 percent (30 percent on a constant- dollar basis) to $61.1 million.
 Revenues from other brands, which include Cole Haan(R), i.e.(TM), Tetra Plastics and newly-acquired Sports Specialties, grew 32 percent to $51.1 million. On a pro-forma basis, (excluding Sports Specialties and including SIDE 1 in current-year results), other brands increased 10 percent.
 Consolidated gross margin for the quarter was 38.7 percent, compared to 38.6 percent last year. The improvement reflects the strong demand for NIKE products combined with sound inventory management. Domestic footwear inventories finished the quarter at 10.3 million pair compared to 8.9 million pair one year ago and 10.1 million pair at May 31, 1992. The company expects inventory levels to increase slightly throughout the remainder of the fiscal year to support the growth indicated by futures orders.
 Selling and administrative expenses were 22.9 percent of revenues compared to 22.3 percent in last year's third quarter. The increases were primarily a result of increases in international staff levels and higher advertising spending as a percent of sales. NIKE's balance sheet remained very strong during the quarter. The current ratio at Feb. 28 was 3.2 to 1.
 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 high-quality men's and women's dress and casual shoes through its Cole Haan subsidiary based in Yarmouth, Maine, and an extensive assortment of licensed headwear through its Sports Specialties subsidiary based in Irvine, Calif. Consolidated revenues for the trailing 12-month period ended Feb. 28, 1993, increased 16 percent to $3.8 billion.
 Financial tables follow.
 NIKE INC.
 (In thousands, except per-share data)
 Three Months Ended Nine Months Ended
 Feb. 28, Feb. 29, Feb. 28, Feb. 29,
 1993 1992 1993 1992
 Revenues $972,004 $867,019 $2,947,705 $2,557,597
 Net income $ 89,471 $ 82,517 $ 288,109 $ 258,489
 Net income per share $ 1.16 $ 1.08 $ 3.74 $ 3.38
 Avg common shares 77,194 76,842 77,053 76,536
 -0- 3/15/93
 /CONTACT: Ron Parham (analysts), 503-671-3079, or Liz Dolan (press), 503-671-3509, both of NIKE/
 (NKE)


CO: NIKE Inc. ST: Oregon IN: TEX SU: ERN

LM -- SE003 -- 5882 03/15/93 08:50 EST
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Date:Mar 15, 1993
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