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NIKE EARNINGS UP 38 PERCENT; STOCK REACHES RECORD HIGH
Published December 20, 1995
The Nike "juggernaut has powered its way to another strong quarter," writes Jeff Manning in the Portland OREGONIAN, as the company "enjoyed strong sales nearly across the board." Nike earned $118.2M in the quarter ended November 30, as revenue also rose an "impressive" 37%. Earnings were up 38%, with apparel showing "particular strength." Apparel earnings grew 100% domestically to $374M, up from $230M in the same period last year. Nike Chair & CEO Phil Knight "casually predicted" they will surpass sports apparel leader Russell Athletic in U.S. sales "in the next 18 months." In domestic footwear, Nike reported sales of basketball shoes up 12%, men's running shoes up 53%, women's fitness up 28% and outdoor up 27%. NOW THE BAD NEWS? Manning reports "some less rosy news" for Nike is its outdoor division, which is unlikely to show substantial growth in '96, as the outdoor sandal market -- a major part of Nike's outdoor business -- is seen as "saturated." Also, Canstar, the Nike-owned skate and hockey equipment maker, experienced only a 5% growth year-to-year, "well below expectation," as analysts notes other manufacturers have flooded the market with in-line skates, pushing prices down (OREGONIAN, 12/19). Shares rose to a record after the reports, jumping $2 to $64. Nike shares are now up more than 70% this year (USA TODAY, 12/20).