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 BEAVERTON, Ore., Sept. 20 /PRNewswire/ -- NIKE Inc. (NYSE: NKE; PSE) today reported record revenues for the first quarter ended Aug. 31, 1993, of $1,107,878,000, up 1 percent from revenues of $1,099,862,000 in the prior year. Net income for the quarter was $114,100,000 or $1.49 per share, a decrease of 7 percent from the $122,593,000 or $1.60 per share earned in last year's first quarter. Had foreign exchange rates and U.S. tax rates remained constant at year-ago levels, net income would have been $1.61 per share.
 The company's worldwide orders for athletic footwear and apparel scheduled for delivery between September 1993 and January 1994 total $1.28 billion, 4 percent lower 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 decreased 1 percent. These orders are not necessarily indicative of total revenues for subsequent periods because of the changing mix of "futures" and "at-once" shipments as more European customers participate in the "futures" program.
 Consolidated gross margins for the first quarter rose to 39.7 percent from 39.4 percent last year, reflecting sound inventory management and controlled distribution of NIKE products throughout the marketplace.
 Selling and administrative expenses were 21.6 percent of first quarter revenues, compared to 20.7 percent last year.
 During August 1993, Congress passed the 1993 Deficit Reduction Plan increasing corporate tax rates one percent retroactive to Jan. 1, 1993. The effect of this rate increase, combined with its impact on deferred taxes under FAS 109, resulted in a decrease in net income of 8 cents per share in the first quarter.
 NIKE Chairman Philip H. Knight commented, "We have completed a string of six consecutive record years in which revenues more than quadrupled and earnings increased tenfold. This quarter would have been our best ever if foreign exchange rates and tax rates had remained constant. Because of these variables, and because continued caution by U.S. retailers and sluggish international economies have caused futures orders for the next 5 months to total less than last year, we now believe earnings for fiscal year 1994 will not match the record sales and income reported in fiscal 1993.
 "NIKE products continued to sell very well at retail during the quarter. We reached another significant milestone, surpassing $2 billion in U.S. footwear sales over the past 12 months. The 5 percent increase this quarter was led by an increase in the outdoor category of 29 percent, growth of 18 percent in women's fitness products, and gains of 34 percent in cross-training. We continued to dominate the basketball category with 60 percent market share and sales of $159 million but that was down 16 percent from last year's exceptional levels.
 "The increase in gross margins to 39.7 percent attests to the strength of the NIKE brand around the world and to the power of innovative products during a time of retail sluggishness.
 "The long-term worldwide potential for NIKE remains intact and our previously stated goal of $6 billion in sales is achievable, but it will not be a straight line of growth to that level.
 "Management is actively reviewing spending plans to ensure focus remains on building the NIKE brand around the world while, at the same time, keeping total spending at reasonable levels in relation to revenue growth. We remain committed to investing in our operations and bringing innovative products and services of real value to all our retail partners and consumers.
 "During periods of uncertainty over the past 21 years, our management team has repeatedly demonstrated the ability to respond competitively to these kinds of challenges. I'm confident that they will continue to lead and set the standard for the industry."
 In the quarter, domestic athletic footwear and apparel revenues totaled $723.6 million, an increase of 5 percent. International athletic footwear and apparel revenues declined 11 percent in the quarter to $319.9 million but would have increased 1 percent had the U.S. dollar remained constant at year-ago levels. Revenues from other brands, which include Cole Haan(R), i.e.(TM), Tetra Plastics and Sports Specialties, grew 27 percent to $64 million.
 NIKE's strong balance sheet improved further during the period. The current ratio at Aug. 31 was 3.7 to 1. Inventories turned at a rate of 4.8 times during the quarter and domestic footwear inventories ended the quarter at 9.7 million pair compared to 7.6 million pair one year ago and 12.9 million pair at May 31, 1993.
 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 its Cole Haan subsidiary based in Yarmouth, Maine and a full range of licensed headwear through its Sports Specialties subsidiary based in Irvine, Calif. Total revenues for the trailing twelve month period ended Aug. 31, 1993, increased 11 percent to $3.9 billion.
 Three months ended Aug. 31, 1993 Aug. 31, 1992
 (in thousands, except per share data)
 Revenues $ 1,107,878 $ 1,099,862
 Net income $ 114,100 $ 122,593
 Net income per common
 share $ 1.49 $ 1.60
 Average common shares
 outstanding 76,744 76,857
 -0- 9/20/93
 /CONTACT: Ron Parham (analysts), 503-671-3079, or Liz Dolan (press), 503-671-3509 of NIKE/

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

JH -- SE007 -- 3492 09/20/93 09:02 EDT
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Publication:PR Newswire
Date:Sep 20, 1993

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