Nike, Inc. yesterday reported record revenues and earnings
for the fourth quarter and the fiscal year ended May 31, '96.
Fourth quarter net income totaled $156.4M, or $1.06/share,
compared to $113.4M, or $0.78/share in '95. Fourth quarter
revenues were $1.9B up 36% from last year's $1.41B. For the FY,
net income grew to a record $553.2M, or $3.77/share, increases of
38% and 39% respectively. Full year revenues totaled a record
$6.47B compared to $4.7B last year, a 36% increase (Nike). Smith
Barney's Faye Landes says there is no reason to believe the huge
profit growth will slow any time soon. CNN's Sean Callebs did
note growing concerns over recent sweatshop allegations. Nike
stock was up 4/12 to 108 3/4 Tuesday ("Moneyline," 7/9). More
from Landes: "The pie is not expanding. They're taking share
from others, Reebok in particular" (USA TODAY, 7/10). Dean
Witter Reynolds' Scott Emerman: "You can't keep generating such
big numbers, but Nike surprised people by their ability to do so"
(WALL STREET JOURNAL, 7/10).
MR. CHAIRMAN: Nike Chair & CEO Phil Knight appeared on
"Moneyline" noted the growth in future orders and cited the
almost 100% gain in apparel sales over the past year. Knight, on
overtaking Reebok in the women's apparel market: "We've been
working on that for a long time. It's the result of eight long
years of trying to improve ourselves in that whole area." Knight
said Nike's overall goal is to become a global and brand, an
additional "six- or seven-year project." Knight, on the
sweatshop issue: "We're not new to controversy, but we've been a
little surprised by the sort of sensationalist and simplistic
aspects of this latest go around. ... In Indonesia, we think
we're the best citizen in the whole country. We don't pay
minimum wage, we pay over two times the minimum wage"
("Moneyline," CNN, 7/9).
EVERYONE WINS: Fila stock was up 3 to 91, on the news of
Nike's earnings ("Nightly Business Report," PBS, 7/9).
