NIKE Reports First Quarter Earnings Per Share of $1.12

Revenue up 11 percent; worldwide futures orders up 11.5 percent

One-time tax benefit contributes $0.20 to earnings per share

    BEAVERTON, Ore., Sept. 20 /PRNewswire-FirstCall/ -- NIKE, Inc. (
 NKE) today reported financial results for the first quarter, ended August
 31, 2007. Revenue grew 11 percent to $4.7 billion, compared to $4.2 billion
 for the same period last year. Changes in currency exchange rates increased
 revenue growth by 3 percentage points for the quarter. First quarter net
 income increased 51 percent to $569.7 million, compared to $377.2 million
 in the prior year and diluted earnings per share increased 51 percent to
 $1.12, versus $0.74 last year.
     (Logo: http://www.newscom.com/cgi-bin/prnh/19990818/NIKELOGO)
     The first quarter effective tax rate reflects a one-time benefit
 related to utilization of past foreign losses, contributing $0.20 per
 diluted share. The Company has now taken the steps necessary to realize
 this tax benefit, reducing the effective tax rate for the quarter by
 approximately 15.6 points.
     Mark Parker, President and CEO of Nike, Inc. said, "We're off to a
 strong start as our first quarter results reflect the power of our brands
 as well as the strength and diversification of the Nike, Inc. portfolio. We
 have an aggressive growth plan to achieve $23 billion in revenue by fiscal
 year 2011, and we're well on our way."*
     Parker continued, "As we execute against our long-term growth
 priorities, we will continue to distinguish ourselves as the industry
 leader with our relentless focus on creating innovative product, and on
 bringing a new level of excitement and energy to retail."*
     Futures Orders
     The Company reported worldwide futures orders for athletic footwear and
 apparel, scheduled for delivery from September 2007 through January 2008,
 totaling $5.9 billion, 11.5 percent higher than such orders reported for
 the same period last year. Changes in currency exchange rates increased
 reported orders growth by 1 percentage point.*
     By region, futures orders for the U.S. increased 3 percent; Europe
 (which includes the Middle East and Africa) and Asia Pacific both increased
 17 percent; and the Americas grew 20 percent. Changes in currency exchange
 rates increased the reported futures orders growth in Europe by 3
 percentage points. Changes in currency exchange rates increased reported
 futures orders growth in Asia Pacific by 1 percentage point. In the
 Americas region changes in currency exchange rates did not have a
 significant impact on futures growth.
     Regional Highlights
     U.S.
     During the first quarter, U.S. revenues increased 2 percent to $1,638.4
 million versus $1,601.9 million for the first quarter of fiscal 2007. U.S.
 athletic footwear revenues increased 4 percent to $1,119.9 million. Apparel
 revenues decreased 1 percent to $428.0 million. Equipment revenues declined
 1 percent to $90.5 million. U.S. pre-tax income declined 2 percent to
 $347.3 million.
     Europe
     First quarter revenues for the European region grew 16 percent to
 $1,477.7 million from $1,270.9 million for the same period last year.
 Changes in currency exchange rates increased revenue growth by 7 percentage
 points. Footwear revenues increased 17 percent to $791.9 million. Apparel
 revenues grew by 16 percent to $567.0 million and equipment revenues
 increased 14 percent to $118.8 million. Pre-tax income increased 21 percent
 to $375.5 million.
     Asia Pacific
     In the first quarter, revenues in the Asia Pacific region grew 22
 percent to $630.8 million compared to $518.4 million a year ago. Changes in
 currency exchange rates increased revenue growth by 2 percentage points.
 Footwear revenues were up 25 percent to $332.1 million, apparel revenues
 increased 20 percent to $240.5 million and equipment revenues grew 13
 percent to $58.2 million. Pre-tax income increased 52 percent to $159.5
 million.
     Americas
     Revenues in the Americas region increased 15 percent to $279.5 million,
 an improvement from $242.5 million in the first quarter of fiscal 2007.
 Currency exchange rates contributed 4 percentage points to this growth
 rate. Footwear revenues were up 15 percent to $198.4 million, apparel
 revenues increased 14 percent to $58.3 million and equipment revenues grew
 20 percent to $22.8 million. Pre-tax income was up 16 percent to $57.9
 million.
     Other Businesses
     For the first quarter, Other business revenues, which include Converse
 Inc., NIKE Golf, Cole Haan Holdings Incorporated, NIKE Bauer Hockey Corp.,
 Hurley International LLC and Exeter Brands Group LLC, grew 12 percent to
 $628.7 million from $560.4 million last year. Pre-tax income increased 9
 percent to $95.2 million for the quarter. The prior year first quarter
 results included a $14.2 million benefit resulting from the favorable
 settlement of arbitration proceedings against Converse; excluding this
 benefit, pre-tax income for the Other businesses grew 30 percent.
     The Company also announced today its intent to explore the sale of Nike
 Bauer Hockey. Following a strategic review of the company's affiliate
 brands portfolio, Nike determined that despite the strength of the
 business, Nike Bauer Hockey does not align with the Company's long-term
 growth priorities and exploring a sale is the best strategic alternative.
 The Company expects the exploration process and any potential sale that
 maximizes Nike Bauer Hockey's value to Nike will be completed within the
 current fiscal year.
     Commenting on the anticipated sale, Parker said: "We are focused on
 investing our resources where we will achieve the greatest returns, both
 within the Nike brand and within a strong portfolio of complementary
 affiliate brands. We're confident it's the right choice for our Company as
 we maximize our opportunities and drive toward our long-term growth
 targets. Given Nike Bauer's market leading position, we believe we will be
 able to effectively execute this transaction."
     Income Statement Review
     Gross margins were 44.8 percent compared to 44.1 percent for the same
 period last year.
     Selling and administrative expenses were 30.8 percent of first quarter
 revenues, which is comparable to the same period last year.
     The effective tax rate for the first quarter declined significantly to
 15.0 percent primarily due to the one-time tax benefit described above.
     Balance Sheet Review
     At quarter end, global inventories stood at $2.2 billion, an increase
 of less than 1 percent from August 31, 2006. Cash and short-term
 investments were $2.8 billion at the end of the quarter, compared to $1.7
 billion at the end of the first quarter last year.
     Share Repurchase
     During the first quarter, the Company repurchased a total of 5,757,101
 shares for approximately $321.5 million in conjunction with the Company's
 four-year, $3 billion share repurchase program approved by the Board of
 Directors in June 2006. As of the end of the first quarter the Company has
 repurchased a total of 23.8 million shares for approximately $1.1 billion
 under this program.
     NIKE, Inc. based near Beaverton, Oregon, is the world's leading
 designer, marketer and distributor of authentic athletic footwear, apparel,
 equipment and accessories for a wide variety of sports and fitness
 activities. Wholly owned Nike subsidiaries include Converse Inc., which
 designs, markets and distributes athletic footwear, apparel and
 accessories; Cole Haan Holdings Incorporated, which designs, markets and
 distributes luxury shoes, handbags, accessories and coats; NIKE Bauer
 Hockey Corp., a leading designer and distributor of hockey equipment;
 Hurley International LLC, which designs, markets and distributes action
 sports and youth lifestyle footwear, apparel and accessories; and Exeter
 Brands Group LLC, which designs and markets athletic footwear and apparel
 for the value retail channel.
     NIKE's earnings releases and other financial information are available
 on the Internet at http://www.nikebiz.com/investors.
     * 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 the mix of futures and "at once" orders, exchange
 rate fluctuations, order cancellations and discounts, which may vary
 significantly from quarter to quarter, and because a significant portion of
 the business does not report futures orders.
                                (Tables Follow)
 
 
 
                                   NIKE, Inc.
                       CONSOLIDATED FINANCIAL STATEMENTS
                      FOR THE PERIOD ENDED AUGUST 31, 2007
                      (In millions, except per share data)
 
 
                                           QUARTER ENDED
     INCOME STATEMENT                08/31/2007     08/31/2006    %Chg
     Revenues                         $4,655.1       $4,194.1      11%
     Cost of sales                     2,568.1        2,344.9      10%
     Gross margin                      2,087.0        1,849.2      13%
                                         44.8%          44.1%
 
     Selling and administrative
      expense                          1,434.7        1,289.7      11%
                                         30.8%          30.8%
 
     Interest income, net                (24.6)         (13.1)     88%
     Other expense (income), net           6.6           (3.2)   -306%
 
 
     Income before income taxes          670.3          575.8      16%
 
     Income taxes                        100.6          198.6     -49%
                                         15.0%          34.5%
 
     Net income                         $569.7         $377.2      51%
 
     Diluted EPS                         $1.12          $0.74      51%
 
     Basic EPS                           $1.14          $0.75      52%
 
     Weighted Average Common Shares Outstanding:
     Diluted                             507.3          512.0
     Basic                               499.4          505.4
     Dividends declared                 $0.185         $0.155
 
 
 
     NIKE, Inc.
     BALANCE SHEET *                                08/31/2007      08/31/2006
        ASSETS                                            (in millions)
     Current assets:
       Cash and equivalents                          $1,973.9        $1,030.7
       Short-term investments                           817.4           693.9
       Accounts receivable, net                       2,774.1         2,557.3
       Inventories                                    2,154.9         2,134.3
       Deferred income taxes                            220.3           188.8
       Prepaid expenses and other current assets        400.9           382.3
 
     Total current assets                             8,341.5         6,987.3
 
     Property, plant and equipment                    3,732.5         3,451.1
       Less accumulated depreciation                  2,014.9         1,802.4
       Property, plant and equipment, net             1,717.6         1,648.7
 
     Identifiable intangible assets, net                409.5           407.5
     Goodwill                                           130.8           130.8
     Deferred income taxes and other assets             414.1           396.2
 
     Total assets                                   $11,013.5        $9,570.5
 
       LIABILITIES AND SHAREHOLDERS' EQUITY
     Current liabilities:
       Current portion of long-term debt                 $5.8           $30.5
       Notes payable                                    140.2            61.3
       Accounts payable                                 971.5           867.7
       Accrued liabilities                            1,313.9         1,292.8
       Income taxes payable                             184.0           152.5
 
       Total current liabilities                      2,615.4         2,404.8
 
     Long-term debt                                     420.9           380.4
     Deferred income taxes and other liabilities        622.3           564.1
     Redeemable preferred stock                           0.3             0.3
     Shareholders' equity                             7,354.6         6,220.9
 
     Total liabilities and shareholders' equity     $11,013.5        $9,570.5
 
     * Certain prior year amounts have been reclassified to conform to fiscal
       year 2008 presentation. These changes had no impact on previously
       reported results of operations or shareholders' equity.
 
 
 
     NIKE, Inc.
                                       QUARTER ENDED
     DIVISIONAL REVENUES         08/31/2007    08/31/2006     %Chg
                                       (In millions)
     U.S. Region
          Footwear                $1,119.9      $1,079.1        4%
          Apparel                    428.0         431.5       -1%
          Equipment                   90.5          91.3       -1%
               Total               1,638.4       1,601.9        2%
 
     EMEA Region
          Footwear                   791.9         679.5       17%
          Apparel                    567.0         487.0       16%
          Equipment                  118.8         104.4       14%
               Total               1,477.7       1,270.9       16%
 
     Asia Pacific Region
          Footwear                   332.1         266.0       25%
          Apparel                    240.5         200.9       20%
          Equipment                   58.2          51.5       13%
               Total                 630.8         518.4       22%
 
     Americas Region
          Footwear                   198.4         172.3       15%
          Apparel                     58.3          51.2       14%
          Equipment                   22.8          19.0       20%
               Total                 279.5         242.5       15%
 
                                   4,026.4       3,633.7       11%
 
     Other businesses                628.7         560.4       12%
 
     Total NIKE, Inc. revenues    $4,655.1      $4,194.1       11%
 
 
 
     NIKE, Inc.
                                       QUARTER ENDED            %
     PRE-TAX INCOME(1),(2)       08/31/2007     08/31/2006     Chg
                                       (In millions)
 
     U.S. Region                    $347.3        $355.7       -2%
     EMEA Region                     375.5         310.6       21%
     Asia Pacific Region             159.5         104.9       52%
     Americas Region                  57.9          49.7       16%
     Other businesses                 95.2          87.4        9%
     Corporate(3)                   (365.1)       (332.5)     -10%
 
     Total pre-tax income(1)        $670.3        $575.8       16%
 
     (1) The Company evaluates performance of individual operating segments
         based on pre-tax income.  Total pre-tax income equals income before
         income taxes as shown on the Consolidated Income Statement.
     (2) Certain prior year amounts have been reclassified to conform to fiscal
         year 2008 presentation.  These changes had no impact on previously
         reported results of operations or shareholders' equity.
     (3) "Corporate" represents items necessary to reconcile to total pre-tax
         income, which includes corporate costs that are not allocated to the
         operating segments for management reporting and intercompany
         eliminations for specific items in the Consolidated Income Statement.
 
 

SOURCE NIKE, Inc.