NIKE REPORTS 15.7% THIRD QUARTER REVENUE INCREASE

26 Mar 2008

Nike, Inc. posted a strong fiscal third quarter as sales jumped 15.7% to $4.54 billion for the period ended February 29, 2008 from $3.93 billion for the same period last year. Changes in currency exchange rates increased revenue growth by 6 percentage points for the quarter. Third quarter net income grew 32% to $463.8 million, compared to $350.8 million in the prior year and diluted earnings per share increased 35% to 92 cents, versus 68 cents last year.

“A year ago we established the goal of reaching $23 billion in revenues by our fiscal year 2011 and outlined our strategy for achieving that goal while continuing to deliver profitable, sustainable growth and outstanding returns to our shareholders,” said Mark Parker, Nike, Inc. president and CEO. “Our strong third quarter results, driven by sales gains across our diversified portfolio of categories, geographies, and brands, are a clear indication that our strategy is working and that we’re on track to achieve our financial goals for this fiscal year and beyond.”

Parker continued, “Over the past twelve months we’ve taken a number of important strategic steps to strengthen the performance and potential of our portfolio of products and brands, steps we believe create stronger platforms for growth and allow us to connect even deeper with consumers. More than ever, the consumer is at the epicenter of everything we do, and delivering the most innovative products and the most exciting consumer experiences is the key to our future growth.”

Regional Highlights

Europe
Third quarter revenues for the company’s European region grew 23% to $1.4 billion from $1.1 billion for the same period last year. Changes in currency exchange rates increased revenue growth by 13 percentage points. Footwear revenues were up 25% to $784.8 million. Apparel revenues increased 21% to $499.5 million and equipment revenues increased 23% to $100.0 million.
Pre-tax income increased 31% to $334.3 million.