Nike Reports 58 Percent Increase in 2nd Quarter Fiscal 2000 Earnings Per Share / Worldwide Futures Orders Increase 4 Percent
17.12.1999, 09:55
BEAVERTON, Ore. (PROTEXT) - Highlights:
- Revenues for the quarter increased 8% to $2.1 billion
- Earnings per share $0.38 versus $0.24 ($0.28 excluding FY
99 Q2
restructuring charge)
- Global footwear revenues increased 16 percent; global
apparel
down 2 percent
- European revenues increased 13 percent; 22 percent in
constant
dollars
- Asia Pacific revenues increased 23 percent; 9 percent in
constant dollars
NIKE, Inc. (NYSE: NKE) today reported revenues and earnings
for the Company's second quarter ended November 30, 1999. Second
quarter net income totaled $107.5 million or $0.38 per diluted
share compared to $68.9 million, or $0.24 per diluted share
($0.28 excluding the restructuring charge from the second quarter
FY 99). Second quarter revenues were $2.1 billion, up 8 percent
from $1.9 billion last year.
Philip H. Knight, Chairman and CEO, said, "There are many
reasons for encouragement in these results, including some very
positive financial trends for the Company.*
Thomas E. Clarke, President and COO, added, "We're very
focused on getting the top-line growing again and this past
quarter we did that for the first time in two years. We saw
revenue growth in every region -- a clear signal that our
products are clicking with consumers and a strong indicator of
our global brand strength. Clearly, we saw some better results in
the U.S. this quarter but the sales increase was really fueled by
growth outside the U.S.*
"In the U.S. market much has been written about the
consolidation taking place in the athletic retail channels. While
this may have an adverse effect on our revenues in the short run,
long term it will result in the strengthening of the business
with a healthier environment for Nike and its retailers.*
"Outside the U.S., Nike's business is in terrific shape,
reinforcing our conviction about the growth potential in these
markets. In the long-term, our business outside the U.S. will be
the key driver in taking us to the next level of sales and
profitability. In the short-term, we believe that the strength of
these growing markets, combined with expanding U.S. margins, will
provide the basis for profit growth despite the retail issues
affecting the U.S. athletic market."*
Futures Orders
The Company reported worldwide futures orders for athletic
footwear and apparel, scheduled for delivery between December
1999 and April 2000 total $3.8 billion, 4 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 5 percent.*
Looking at futures orders by region, the U.S. region declined
8 percent, Europe increased 15 percent, Asia Pacific increased 24
percent and the Americas grew 14 percent. In constant dollars,
futures orders for Europe increased 22 percent, Asia Pacific grew
17 percent and Americas increased 13 percent.*
Regional Highlights
USA
U.S. athletic footwear revenues grew 9 percent to $722.9
million, compared to $665.9 million in the same period last year.
U.S. athletic apparel revenues declined 10 percent in the quarter
to $307 million.
Europe
European revenues in the quarter increased 13 percent to
$484.7 million. Had the dollar remained constant at year-ago
levels, revenues would have increased 22 percent. Revenues in the
United Kingdom grew 37 percent on a constant dollar basis.
Constant dollar revenues in France and Italy grew 19 and 21
percent respectively.
Asia Pacific
Revenues in the Asia Pacific region increased 23 percent to
$242.6 million. In constant dollars, regional revenues grew 9
percent. Constant dollar revenues in Japan grew three percent
compared to a decrease of 16 percent in the first quarter of
fiscal 2000.
Americas
Revenues in the Americas region increased 21 percent to $145.1
million. Had the dollar remained constant, revenues would have
increased 28 percent. In Mexico, constant dollar revenues grew 51
percent.
Income Statement Review
In the second quarter, consolidated revenues increased eight
percent. Other brand revenues, which include Bauer Nike Hockey,
Cole Haan(R), and Nike IHM, Inc. decreased 3 percent to $108.7
million. Gross margins in the quarter were 39.9 percent compared
to 35.7 percent last year. Selling and administrative expenses
were 30.3 percent of second quarter revenues, compared to 27.8
percent last year.
Balance Sheet Review
Cash and short-term investments in the second quarter were
$253.0. Inventories totaled $1.25 billion, up two percent from
August 31, 1999 and up 5 percent from November 30, 1998.
Share Repurchase
As of November 30, 1999, the Company had purchased a total of
15,845,600 shares of Nike's Class B Common Stock for
approximately $730.7 million in the open market in conjunction
with the $1 billion share repurchase program approved in December
1997. During the second quarter, the Company purchased a total of
4,483,100 shares for approximately $233.3 million.
NIKE, Inc., based in Beaverton, Oregon, is the world's leading
designer and marketer of authentic athletic footwear, apparel,
equipment and accessories for a wide variety of sports and
fitness activities. Wholly owned Nike subsidiaries include Bauer
NIKE Hockey, Inc., 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
Corporation, which markets a full line of licensed headwear.
Total revenues for the trailing twelve months ending November 30,
1999, were $8.92 billion.
* The marked paragraphs contain forward-looking statements
that involve risks and uncertainties that could cause actual
results to differ materially. These risks and uncertainties are
detailed from time to time in reports filed by NIKE with the
S.E.C., including Forms 8-K, 10-Q, and 10-K. Some forward-
looking statements in this release concern changes in futures
orders that are not necessarily indicative of changes in total
revenues for subsequent periods due to cancellations and the mix
of futures and "at once" orders, which may vary significantly
from quarter to quarter.
NIKE's earnings releases and other financial information are
available on the Internet at NikeBiz.com.
(Tables Follow)
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE QUARTER ENDED NOVEMBER 30, 1999
(In millions, except per share data)
INCOME
QUARTER ENDING
YEAR TO DATE
ENDING
STATEMENT
11/30/
11/30/ % Chg
11/30/
11/30/
%Chg
1999
1998
1999
1998
Revenues
$2,059.7 $1,913.0
8% $4,560.8 $4,417.9
3%
Cost of Sales 1,238.0 1,229.6
1% 2,772.6 2,792.3
-1%
Gross Profit
821.7
683.4
20% 1,788.2 1,625.6
10%
39.9%
35.7%
39.2 %
36.8%
SG&A
624.8
531.9
17% 1,251.4 1,184.5
6%
30.3%
27.8%
27.4%
26.8%
Interest Expense 6.7
10.1
-34%
16.7
24.3 -
31%
Other
17.1
6.7
155%
24.0
11.2
114%
Restructuring
charge
(0.3)
20.9
101%
(0.3)
20.9
101%
Pre-tax Income 173.4
113.8
52%
496.4
384.7
29%
Income Taxes
65.9
44.9
47%
188.6
151.9
24%
38.0 %
39.5%
38.0%
39.5%
Net Income
$107.5
$68.9
56%
$307.8
$232.8
32%
Diluted EPS
$0.38
$0.24
58%
$1.09
$0.80
36%
Basic EPS
$0.39
$0.24
63%
$1.10
$0.82
34%
Weighted Average
Common Shares
Outstanding:
Diluted
281.2
287.7
283.4
289.8
Basic
277.3
283.0
279.2
284.9
Dividend
$0.12
$0.12
$0.24
$0.24
BALANCE SHEET
11/30/1999
11/30/1998
ASSETS
Cash & Investments
$253.0
$254.6
Accounts Receivable
1,510.0
1,511.2
Inventory
1,251.7
1,197.7
Deferred Taxes
109.6
175.0
Prepaid Expenses
161.3
161.0
Current Assets
3,285.6
3,299.5
Fixed Assets
2,355.0
1,967.6
Depreciation
806.0
736.8
Net Fixed Assets
1,549.0
1,230.8
Identifiable Intangible
Assets and Goodwill
417.3
435.5
Other Assets
307.5
284.1
Total Assets
$5,559.4
$5,249.9
LIAB AND EQUITY
Current Long-Term Debt
$50.2
$1.3
Payable to Banks
568.9
431.6
Accounts Payable
491.4
429.9
Accrued Liabilities
576.3
678.5
Income Taxes Payable
100.0
31.4
Current Liabilities
1,786.8
1,572.7
Long-term Debt
472.4
389.1
Def Inc Taxes & Oth Liab
87.6
52.3
Preferred Stock
0.3
0.3
Common Equity
3,212.3
3,235.5
Total Liab. & Equity
$5,559.4
$5,249.9 ots
Original Text Service: NIKE, Inc. Internet:
http://www.newsaktuell.de Contact: media, Corby Casler, 503-671-
3578, or investors, or Rick Anguilla, 503-671-3139, both of NIKE,
Inc. Company News On-Call:
http://www.prnewswire.com/comp/622104.html or fax, 800-758-5804,
ext. 622104 Web site: http://www.nikebiz.com
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