NIKE Reports Third Quarter Fiscal 1999 Earnings /

Worldwide Futures Orders Decrease 4 Percent BEAVERTON, Ore. (ots-PRNewswire) - Highlights: * Earnings per share increased 76 percent $0.44 versus $0.25 * Worldwide Futures Orders decreased 4 percent * Revenues for the quarter decreased 2 percent to $2.18billion * Global footwear revenues down 4 percent; global apparel down1

percent * U.S. Footwear revenues increased 4 percent NIKE, Inc. (NYSE: NKE) today reported revenues and earningsfor the Company's third quarter ended February 28, 1999. Thirdquarter net income totaled $124.2 million or $0.44 per dilutedshare compared to $73.1 million, or $0.25 per diluted share. Theincrease in net income and earnings per share was 70 percent and76 percent, respectively. Third quarter revenues were $2.18billion, down 2 percent from $2.22 billion last year. Philip H. Knight, Chairman and CEO, said, "Despite continuedsoftness in the U.S. athletic footwear and apparel retail market,we are beginning to see signs of increased consumer demand forour footwear. While we are encouraged by these early indicators,we remain cautious on our prospects for near-term growth. Ourfocus continues to be on driving consumer demand and growing ourprofitability through higher gross margins and a lower expensebase."* Futures Orders The Company reported worldwide futures orders for athleticfootwear and apparel, scheduled for delivery between March andJuly 1999 total $3.8 billion, 4 percent lower than such ordersfor the same period last year. The impact of exchange rates onworldwide futures orders was not materially significant. Looking at futures orders by region, the USA region was down 6percent, Europe increased 8 percent, Asia Pacific was down 16percent and the Americas was down 23 percent. In constantdollars, futures orders for Europe increased 6 percent, AsiaPacific decreased 20 percent and Americas was down 19 percent.* Regional Highlights USA U.S. athletic footwear revenues increased 4 percent to $828.5million, compared to $800.4 million in the same period last year.U.S. athletic apparel revenues declined 8 percent in the quarterto $304.3 million. Total Nike brand U.S. revenues increased 1percent to $1.16 billion in the quarter. Mr. Knight noted, "OurU.S. running business increased 28 percent in the quarter and thedecline in basketball slowed considerably. Our footwear businessappears to be gaining momentum but our U.S. apparel businessremains very sluggish."* Europe European revenues in the quarter increased 5 percent to $599.8million. Had the dollar remained constant at year-ago levels,revenues would have decreased 3 percent. Revenues in Italy rose33 percent and France saw a sales gain of 19 percent. Italy andFrance grew 21 percent and 11 percent respectively in constantdollars. Mr. Knight added, "We are encouraged by the continuedstrength in European futures orders, in particular the balancebetween footwear and apparel which had previously been skewedheavily toward apparel." Asia Pacific Revenues in the Asia Pacific region declined 19 percent to$222.5 million. In constant dollars, regional revenues decreased24 percent. Revenues in Japan declined 26 percent and 33 percentin constant dollars. Mr. Knight said, "We are increasinglyconfident that we have seen the bottom in our business in AsiaPacific and maintain our belief that this region holds greatpotential for Nike."* Americas Revenues in the Americas region declined 22 percent to $104.7million. Had the dollar remained constant, revenues would havedecreased 18 percent. Income Statement Review In the third quarter, consolidated revenues decreased 2percent. Other brand revenues, which include Bauer Nike Hockey,Cole Haan(R), Nike IHM, Inc. and Nike Team Sports, decreased 5percent to $90.4 million. Gross margins in the quarter were 37.3percent compared to 35.8 percent last year. Selling andadministrative expenses were 26.2 percent of third quarterrevenues, compared to 29.3 percent last year. Balance Sheet Review Cash and short-term investments decreased to $127.9 in thethird quarter. Inventories totaled $1.1 billion, down 27 percentfrom February 28, 1998. Total U.S. footwear inventory units endedthe quarter up 8 percent compared to November 30, 1998, and down27 percent from February 28, 1998. Share Repurchase As of February 28, 1998, the Company had purchased a total of8,046,200 shares of Nike's Class B Common Stock for approximately$318 million in the open market in conjunction with the $1billion share repurchase program approved in December 1997.During the third quarter, the Company purchased a total of1,635,400 shares for approximately $66 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. Total revenues for the trailing twelve months endingFebruary 28, 1999, were $8.90 billion. * The marked paragraphs contain forward-looking statementsthat involve risks and uncertainties that could cause actualresults to differ materially. These risks and uncertainties aredetailed from time to time in reports filed by NIKE with theS.E.C., including Forms 8-K, 10-Q, and 10-K. Some forward-lookingstatements in this release concern changes in futures orders thatare not necessarily indicative of changes in total revenues forsubsequent periods due to cancellations and 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. NIKE, INC

QUARTER ENDING

2/28/1999

2/28/1998 %Chg

REVENUES

$2,176.8

$2,224.0

-2%

COST OF SALES

1,364.9

1,428.8

-4%

GROSS PROFIT

811.9

795.22%

37.3%

35.8%

SG&A

569.8

651.4

-13%

26.2%

29.3%

INTEREST EXP

10.4

13.2

-21%

OTHER

26.3

8.0229%

PRE TAX

205.4

122.668%

TAXES

81.2

49.564%

39.5%

40.4%

NET INCOME

$124.2

$73.170%

DILUTED EPS

$0.44

$0.2576%

BASIC EPS

$0.44

$0.2576%

WEIGHTED AVERAGE COMMON

SHARES OUTSTANDING:

DILUTED

286.1

293.2

BASIC

281.3

287.6

DIVIDEND

$0.12

$0.12

BALANCE SHEET

ASSETS

CASH & ST INVEST

$127.9

$150.3

ACCOUNTS REC

1,737.7

1,809.8

INVENTORY

1,147.4

1,566.1

DEFERRED TAXES

178.1

138.0

PREPAID EXPENSES

151.1

228.8

CURRENT ASSETS

3,342.2

3,893.0

FIXED ASSETS

2,006.9

1,710.1

DEPRECIATION

762.6

618.6

NET FIXED ASSETS

1,244.3

1,091.5

IDENTIFIABLE INTANGIBLE

ASSETS AND GOODWILL

431.4

449.7

OTHER ASSETS

274.3

203.9

TOTAL ASSETS

$5,292.2

$5,638.1

LIAB AND EQUITY

CURRENT LT DEBT

$0.9

$2.0

NOTES PAYABLE

556.0

629.7

ACCOUNTS PAYABLE

329.9

471.4

ACCRUED LIAB

670.2

674.2

INC TAXES PAYABLE

34.0

59.4

CURRENT LIAB

1,591.0

1,836.7

LONG TERM DEBT

388.7

385.3

DEF INC TAXES & OTH LIAB

54.1

41.2

PREFERRED STOCK

0.3

0.3

COMMON EQUITY

3,258.1

3,374.6

TOTAL LIAB & EQTY

$5,292.2

$5,638.1 otsOriginal Text Service: NIKE, Inc. Internet:http://www.newsaktuell.de Contact: media, Lee Weinstein, 503-671-3080, or investors, Rick Anguilla, 503-671-3139, both of NIKECompany News On-Call: http://www.prnewswire.com/comp/622104.htmlor fax, 800-758-5804, ext. 622104 Web site:http://www.NikeBiz.com.

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