NIKE Reports Fourth Quarter and Fiscal 1999 Earnings/

Worldwide Futures Orders Increase 4 Percent BEAVERTON, Ore. (ots-PRNewswire) - Highlights: * Fourth quarter earnings per share $0.33 versus loss of $0.23 * Pre-tax net restructuring charge in the fourth quartertotaled $23.4 million * EPS before restructuring charge $0.38 * Revenues for the quarter decreased 5 percent to $2.18billion * Worldwide futures orders increased 4 percent NIKE, Inc. (NYSE: NKE) today reported revenues and earningsfor the Company's fourth quarter and fiscal year ended May 31,1999. Fourth quarter revenues were $2.18 billion, down fivepercent from $2.31 billion last year. Fourth quarter net incomewas $94.4 million or $0.33 per diluted share, which includes apre-tax net restructuring charge of $23.4 million, or $0.05 perdiluted share. Excluding the restructuring charges in eachperiod, the Company's net income was $108.5 million or $0.38 perdiluted share, compared to $11.9 million, or $0.04 per dilutedshare in the prior year. For the fiscal year ended May 31, 1999, revenues decreasedeight percent to $8.8 billion, compared to $9.6 billion in fiscal1998. Full year net income totaled $451.4 million or $1.57 perdiluted share. Exclusive of the restructuring charges in each ofthe periods, net income was $478.7 million or $1.66 per dilutedshare compared to $479.1 million or $1.62 per diluted share. Philip H. Knight, Chairman and CEO, said, "Fiscal 1999 was ayear of hard work and strategic realignment for us at Nike. Whilewe achieved slightly higher EPS on an eight percent decrease inrevenues, our primary goal was to position ourselves for the nextleg of Nike's growth. The road to that growth will be a morechallenging one than we've faced in the past but we're confidentwe possess the right mix of talent and desire to take advantageof the opportunities in front of us."* Futures Orders The Company reported worldwide futures orders for athleticfootwear and apparel scheduled for delivery between June andNovember 1999 total $4.2 billion, four percent higher than suchorders for the same period last year. The cumulative impact ofexchange rates on futures orders was not materially significant.* By region, the USA was down five percent, Europe increased 22percent, Asia Pacific was up 19 percent and the Americas was down11 percent. In constant dollars, futures orders for Europeincreased 22 percent, Asia Pacific increased 11 percent andAmericas was down 10 percent.* Regional Highlights USA Quarterly U.S. athletic footwear revenues declined threepercent to $832.7 million, compared to $854.6 million in the sameperiod last year. U.S. athletic apparel revenues decreased 19percent in the quarter to $310.7 million. Mr. Knight noted,"Despite lower revenues in the quarter, the U.S. athleticfootwear market showed its resilience this past spring. Our goalfor fiscal 1999 was to rekindle consumer demand and there areclear signs we've made some progress on the footwear front. Ourchallenge is to maintain that footwear momentum into fiscal 2000while focusing on reviving demand in our apparel business." For the full year, U.S. athletic footwear revenues decreasedseven percent to $3.2 billion. U.S. athletic apparel revenuesdecreased 11 percent to $1.4 billion. Europe European revenues in the quarter increased five percent to$545.0 million. The cumulative impact of exchange rates onEuropean revenues was not materially significant in the quarter.Full-year European revenues grew eight percent. Had the U.S.dollar remained constant, full-year revenues would have increasedsix percent. Mr. Knight said, "While the past two years have beendifficult for Nike as a whole, our European business has been ashining light. Based on the strong futures numbers for bothfootwear and apparel, we see opportunities to continue to gainmarket share in Europe in fiscal 2000."* Asia Pacific Quarterly revenues in the Asia Pacific region declined sixpercent to $233.7 million. In constant dollars, regional revenuesdecreased 11 percent. Revenues in Japan were flat in the quartercompared to last year. Full-year Asia Pacific revenues decreased33 percent. Had the U.S. dollar remained constant, full-yearrevenues would have decreased 29 percent. Full-year revenues inJapan decreased 37 percent in both real and constant dollars."Our futures orders would indicate that we have seen the bottomin our Asia Pacific business," said Mr. Knight. "While thesenumbers clearly mark an upturn in our business in the region,management's focus remains on capturing sustainable andprofitable growth in Asia Pacific and avoiding the pitfallsassociated with accelerated top-line growth."* Americas Revenues in the Americas region decreased 14 percent in thequarter to $130.1 million. Had the dollar remained constant,revenues would have decreased 10 percent. For the full year,Americas revenues decreased 15 percent. In constant dollars,full-year Americas revenues decreased 10 percent. Restructuring Charge Fiscal year 1999 earnings were reduced by a restructuringcharge of $60.1 million, of which $32.7 million was incurred inthe fourth quarter. Offsetting this amount in fiscal 1999 was$15.0 million of reversals ($9.3 million in the fourth quarter)from the fiscal 1998 restructuring charge, resulting in a netcharge of $45.1 million. The fiscal 1999 charge relates primarilyto a reduction in workforce as a result of better aligning theCompany's cost structure to planned revenue growth as well as theCompany's shift to outsourcing certain of its informationtechnology functions. This resulted in a severance cost ofapproximately $30 million, related to those affected employees.Also included is the write-off of certain assets related to thechange in strategies around the Company's warehouse distributionfacilities in the United States. Income Statement Review In the fourth quarter, U.S. athletic footwear, apparel andequipment revenues totaled $1.2 billion, a decrease of eightpercent. Non-U.S. athletic footwear, apparel and equipmentrevenues decreased one percent to $908.8 million. Had the U.S.dollar remained constant at year-ago levels, non-U.S. revenueswould have decreased 2 percent in the quarter. Other revenues,which include Bauer NIKE Hockey Inc., Cole Haan(R), Nike IHM,Inc. and Nike Team Sports, Inc., decreased 14 percent to $105.5million. Selling and administrative expenses were 30.8 percent offourth quarter revenues, compared to 31.2 percent last year. Forthe full year, selling and administrative expenses were 27.6percent of revenues, compared to 27.5 percent in fiscal 1998.Included in Other Income and Expense for the quarter is a one-time credit of $15.0 million related to the Company's decision tochange its method of accounting for inventory in the UnitedStates from the last in first out method (LIFO) to the first infirst out method (FIFO). Balance Sheet Review At fiscal year-end, global inventories stood at $1.2 billion,a decrease of 14 percent from last year. Cash and short-terminvestments increased to $198.1 million in the fourth quarter. Share Repurchase In the fourth quarter the company purchased 630,300 shares forapproximately $37 million under the new $1 billion four-yearprogram approved in December 1998. During all of fiscal 1999, thecompany purchased 7.4 million shares for a total of $302 millionunder the new program. Total shares purchased under the programto date were 8,676,500 for a total of $355.5 million. NIKE Inc., based in Beaverton, Oregon, is the world's leadingdesigner and marketer of authentic athletic footwear, apparel,equipment and accessories for a wide variety of sports andfitness activities. Wholly owned Nike subsidiaries include BauerNIKE Hockey Inc., the world's leading manufacturer of hockeyequipment; Cole Haan, which markets a line of high-quality men'sand women's dress and casual shoes; and Nike Team Sports(formerly Sports Specialties), which markets licensed teamproducts. NOTE: * The marked paragraphs contain forward-lookingstatements that involve risks and uncertainties that could causeactual results to differ materially. These risks anduncertainties are detailed from time to time in reports filed byNike with the S.E.C., including Forms 8-K, 10-Q, and 10-K. Someforward-looking statements in this release concern changes infutures orders that are not necessarily indicative of changes intotal revenues for subsequent periods due to the mix of futuresand "at once" orders, which may vary significantly from quarterto quarter. Nike's earnings releases and other financial information areavailable on the Internet at NikeBiz.com. CONSOLIDATED FINANCIALSTATEMENTS

FOR THE QUARTER ENDED MAY 31,1999

(in millions, except per share data) INCOME

QUARTER ENDING

YEAR TO DATEENDING STATEMENT

5/31/1999 5/31/1998 %Chg 5/31/1999 5/31/1998%Chg

Revenues

$2,182.3 $2,307.8

-5% $8,776.9 $9,553.1 -8%

Cost of Sales 1,336.4 1,561.7 -14% 5,493.5 6,065.5 -9%

Gross Profit

845.9

746.1

13% 3,283.4 3,487.6 -6%

38.8%

32.3%

37.4%

36.5%

SG&A

672.3

20.4

-7% 2,426.6 2,623.8 -8%

30.8%

31.2%

27.6%

27.5%

Interest Expense 9.4

16.3 -42%

44.1

60.0 -27%

Other

(15.2)

(10.0) 52%

21.5

20.93%

Restructuring

charge

23.4

129.9 -82%

45.1

129.9 -65%

Pre-tax Income 156.0

(110.5) 241%

746.1

653.014%

Income Taxes

61.6

(42.8) 244%

294.7

253.416%

39.5%

38.7%

39.5%

38.8%

Net Income

$94.4

($67.7) 239% $451.4

$399.613%

Diluted EPS

$0.33 ($0.23) 243%

$1.57

$1.3516%

Basic EPS

$0.33 ($0.23) 243%

$1.59

$1.3815%

Weighted Average Common Shares Outstanding:

Diluted

287.3

292.6

288.3

295.0

Basic

282.1

287.1

283.3

288.7

Dividend

$0.12

$0.12

$0.48

$0.46

BALANCE SHEET

5/31/1999

5/31/1998

ASSETS

Cash & Investments

$198.1

$108.6

Accounts Receivable

1,540.1

1,674.4

Inventory

1,199.3

1,396.6

Deferred Taxes

120.6

156.8

Income taxes receivable

15.9

0.0

Prepaid Expenses

190.9

196.2

Current Assets

3,264.9

3,532.6

Fixed Assets

2,001.3

1,819.6

Depreciation

735.5

666.5

Net Fixed Assets

1,265.8

1,153.1

Identifiable Intangible

Assets and Goodwill

426.6

435.8

Other Assets

290.4

275.9

Total Assets

$5,247.7

$5,397.4

LIAB AND EQUITY

Current Long-Term Debt

$1.0

$1.6

Payable to Banks

419.1

480.2

Accounts Payable

373.2

584.6

Accrued Liabilities

653.6

608.5

Income Taxes Payable

0.0

28.9

Current Liabilities

1,446.9

1,703.8

Long-term Debt

386.1

379.4

Def Inc Taxes & Oth Liab

79.8

52.3

Preferred Stock

0.3

0.3

Common Equity

3,334.6

3,261.6

Total Liab. & Equity

$5,247.7

$5,397.4ots Original Text Service: NIKE, Inc. Internet:http://www.newsaktuell.de Contact: media, Lee Weinstein, (USA)503-671-3080, or investors, Rick Anguilla, (USA) 503-671-3139,both of NIKE, Inc. Company News On-Call:http://www.prnewswire.com/comp/622104.html or fax, (USA) 800-758-5804, ext. 622104 Web site: http://www.NikeBiz.com Web site:http://www.nike.com

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