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) December 18, 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 releases on December 18,
1995:
Beaverton, OR (December 18, 1995) -- NIKE, Inc. (NYSE:NKE) today reported
record revenues and earnings for the Company's second quarter ended
November 30, 1995. Second quarter net income totaled $118.2 million, or
$0.80 per share,increases of 39 percent and 38 percent respectively,
compared to $84.9 million or $0.58 per share in last year's second quarter.
All per share data reflects the Company's 2-for-1 stock split which became
effective October 30, 1995. Worldwide revenues increased 37 percent to a
record $1.44 billion compared with $1.05 billion last year.
The Company also reported worldwide orders for athletic footwear and
apparel scheduled for delivery between December 1995 and April 1996 total
a record $2.7 billion, 34 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 an exceptional
year for NIKE but it presented us with the challenge to maintain the growth
curve into the new year. These record second quarter results illustrate
NIKE's ability to consistently drive consumer demand through product
leadership and reflect the strong equity that exists in the NIKE brand.
"In the second quarter, this brand strength translated into outstanding
sell-through for NIKE footwear and apparel at retail. In U.S. footwear,
men's basketball was up 12 percent, men's running was up 53 percent, men's
tennis grew 66 percent, women's fitness was up 28 percent and outdoor
increased 27 percent.
"Apparel continued its tremendous growth, especially in the U.S., where
sales increased 100 percent. These strong apparel numbers are the result
of broadening our product mix, improving our presentation at retail and
developing a strong 'on-the-field' image while maintaining our focus on
the athletic consumer.
"Momentum for the NIKE brand is clearly extending to markets outside
the U.S. Excluding incremental revenues from the newly-owned NIKE
subsidiary in Argentina and the positive effect of a weaker U.S. dollar,
second quarter international revenues grew 26 percent. We had great
balance throughout the three regions with Germany, Spain, Italy, Japan,
Australia and Canada all showing strong double-digit increases.
"The acceleration in our futures orders is a direct result of delivering
innovative footwear product to our core consumer while significantly
expanding our presence in apparel. In U.S. footwear, men's training was up
28 percent, men's running grew 25 percent and women's fitness increased 36
percent. These record futures are a compelling statement for the NIKE
brand, particularly in light of the 34 percent increase in futures we
reported at this time last year."
In the second quarter, U.S. athletic footwear and apparel revenues totaled
$734.3 million, an increase of 33 percent. International athletic footwear
and apparel revenues increased 30 percent to $573.3 million. Revenues from
other brands, which includes Canstar Sports, Cole Haan, Tetra Plastics and
Sports Specialties, increased 124 percent. Excluding Canstar, which was
acquired in February 1995, revenues from other brands would have increased
14 percent.
Consolidated gross margins for the quarter were 39.3 percent compared to
39.3 percent last year. Selling and administrative expenses were 24.8
percent of second quarter revenues, compared with 25.5 percent last year.
NIKE's balance sheet remained very strong. The current ratio at November
30, 1995 was 2.0 to 1. Cash and short-term investments totaled $204.8
million. Total U.S. footwear inventory units ended the quarter up 57
percent from November 30, 1994 and up 47 percent from August 31, 1995.
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. Wholly-owned NIKE
subsidiaries include Canstar Sports, the world's leading manufacturer of
hockey equipment; Cole Haan, which markets a line of high-quality men's and
women's dress and casual shoes; and Sports Specialties, which markets a full
line of licensed headwear. Total revenues for the trailing twelve months
ended November 30, 1995 were $5.6 billion.
Three Months Ended Six Months Ended
Nov. 30, Nov. 30, Nov. 30, Nov. 30,
1995 1994 1995 1994
(in thousands, except per share data)
Revenues $1,443,027 $1,053,746 $3,057,676 $2,224,101
Net income $ 118,216 $ 84,939 $ 282,997 $ 190,926
Net income per share $0.80 $0.58 $1.93 $1.29
Average common shares 146,994 146,738 146,420 147,596
<TABLE>
<CAPTION>
NIKE, INC. Quarter Ending
QTR FINL STMT 11/30/95 11/30/94
<S> <C> <C>
Revenues $1,443,027 $1,053,746
Costs & Expenses
Cost of Sales 875,446 640,031
SG & A 358,583 268,873
Interest Exp 7,984 3,941
Other 8,798 1,662
Total Costs 1,250,811 914,507
_________ ________
Pre Tax 192,216 139,239
Taxes 74,000 54,300
_________ ________
Net Income 118,216 84,939
Income Per Share $ 0.80 $ 0.58
========= =========
Dividend $ 0.15 $ 0.13
Number of Shares 146,994 146,738
===============================================================================
Balance Sheet
Assets
Cash & St Invest 204,826 546,105
Accounts Rec 1,184,844 776,952
Inventory 710,848 459,276
Deferred Taxes 78,760 46,106
Prepaid Expenses 97,436 53,808
_________ ________
Current Assets 2,276,714 1,882,247
_________ _________
Fixed Assets 964,364 707,155
Depreciation 363,875 265,254
_________ _________
Net 600,489 441,901
_________ _________
Identifiable Intangible Assets and Goodwill 485,725 168,984
Other Assets 48,485 34,623
_________ _________
TOTAL ASSETS $3,411,413 $2,527,755
========= =========
Liab and Equity
Current LT Debt 2,762 2,534
Notes Payable 443,047 133,710
Accounts Payable 277,217 196,921
Accrued Liab 394,805 228,377
Inc Taxes Payable 30,043 25,807
_________ ________
Current Liability 1,147,874 587,349
Long Term Debt 13,728 14,299
Non-Curr Deferred Tax 17,454 21,159
Other Non-Curr Liability 34,415 43,397
Preferred Stock 300 300
Common Equity 2,197,642 1,861,251
_________ _________
TOTAL LIAB & EQTY $3,411,413 $2,527,755
</TABLE>
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: December 20, 1995
By /s/ Robert S. Falcone
Vice President and
Chief Financial Officer
