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) July 11, 1995
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 July 11, 1995:
Beaverton, OR (July 11, 1995) -- NIKE, Inc. (NYSE:NKE) today reported
record revenues and earnings for the Company's fourth quarter and
fiscal year ended May 31, 1995. Fourth quarter net income totaled
$113.4 million, or $1.56 per share, compared to $69.2 million, or
$0.93 per share in the fourth quarter last year. Fourth quarter
revenues were $1.41 billion, compared to $1.00 billion last year.
For the fiscal year ended May 31, 1995, net income grew to a record
$399.7 million or $5.44 per share, increases of 34 and 37 percent
respectively, compared to $298.8 million or $3.96 per share in
fiscal 1994. Full year revenues totaled a record $4.76 billion,
compared to $3.79 billion last year.
The Company also reported worldwide orders for athletic footwear
and apparel scheduled for delivery between June and November 1995
total a record $2.49 billion, 35 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 33 percent.
NIKE Chairman Philip H. Knight stated, "Fiscal 1995 was a year
which defined the power of the NIKE brand. In the U.S., both our
footwear and apparel business increased dramatically with each
gaining significant market share. Outside the U.S., our business
grew as we compete to make NIKE the local brand of choice among
consumers worldwide. We met the challenge to make NIKE a better
company in fiscal 1995 and our brand is extremely well-positioned
for continued growth.
"Our U.S. athletic footwear business shows great balance and strong
momentum. Our men's basketball business continues to dominate the
category with revenues up 48 percent in the fourth quarter.
Women's fitness was up 23 percent, men's cross-training was up
39 percent and outdoor grew 32 percent in the quarter.
"The outstanding fourth quarter results in our U.S. athletic
apparel business illustrate the true strength of the NIKE brand.
U.S. apparel grew 47 percent, reflecting our focus on the product
and programs we believe will make NIKE the market leader in this
segment.
"We are encouraged by results in our international operations where
fourth quarter revenues grew 29 percent. Despite lower revenues
in France and Germany, international revenues increased 9 percent,
excluding new NIKE-owned subsidiaries in Korea, Austria and Argentina
and the favorable effect of a weaker dollar. We believe that France
and Germany will show improved results in the new fiscal year, given
the increase in futures orders in both countries for the first half
of fiscal 1996.
"All key U.S. footwear and apparel categories showed double digit
increases in futures orders, illustrating the strength of the NIKE
brand across the industry. In footwear, men's basketball grew 16
percent, outdoor grew 41 percent and women's fitness was up 16
percent. In addition, men's court and women's sport both showed
dramatic growth."
In the fourth quarter, U.S. athletic footwear and apparel revenues
totaled $708.4 million, an increase of 40 percent. International
athletic footwear and apparel revenues increased 29 percent to $569.7
million. Revenues from other brands, which include Canstar Sports,
Cole Haan(R), Tetra Plastics and Sports Specialties, increased 142
percent to $133.9 million. Excluding Canstar, revenues from other
brands would have increased 4 percent.
Consolidated gross margins for the quarter were 40.1 percent compared
to 40.2 percent last year. Selling and administrative expenses were
26.2 percent of fourth quarter revenues, compared with 27.9 percent
last year. NIKE's balance sheet remained very strong. The current
ratio at May 31, 1995, was 1.8 to 1. Cash and short-term investments
totaled $216.1 million. Total U.S. footwear inventory units ended the
quarter up 6 percent from May 31, 1994.
As of May 31, 1995 the Company had purchased a total of 4.9 million
shares of NIKE's Class B Common Stock for approximately $283 million
in the open market in conjunction with the $450 million, three-year
share repurchase program approved in July 1993. During fiscal 1995,
the Company purchased a total of 2.1 million shares for approximately
$143 million.
For the full fiscal year, U.S. athletic footwear and apparel
revenues increased 24 percent to $2.73 billion. International
athletic footwear and apparel revenues increased 27 percent to
$1.72 billion. Revenues from other brands increased 38 percent
to $310.6 million. Excluding Canstar, revenues from other brands
would have increased 4 percent.
Consolidated gross margins for 1995 increased to 39.8 percent of
revenues compared to 39.3 percent last year. Selling and administrative
expenses were 25.4 percent of revenues compared with 25.7 percent last
year. Spending in absolute dollars increased $235.7 million or 24 percent
from last year. New NIKE-owneds accounted for $80 million of the
increase. The Company's tax rate for the full year decreased to 38.5
percent from 39.1 percent, primarily as a result of lower taxes from
non-U.S. earnings.
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. In February,
1995, NIKE completed the acquisition of Montreal-based Canstar Sports
Inc., the world's largest hockey equipment manufacturer, making
Canstar a wholly-owned subsidiary of NIKE. 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, California. Total revenues for the fiscal year
ended May 31, 1995, were $4.8 billion.
Three Months Ended Twelve Months Ended
May 31, May 31, May 31, May 31,
1995 1994 1995 1994
(In thousands, except per share data)
Revenues $1,412,036 $1,004,156 $4,760,834 $3,789,668
Net Income $ 113,389 $ 69,164 $ 399,664 $ 298,794
Net Income per Share $ 1.56 $ 0.93 $ 5.44 $ 3.96
Avg. Common Shares 72,939 74,278 73,503 75,456
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: July 11, 1995
By /s/ Robert S. Falcone
Vice President and
Chief Financial Officer
