At "virtually the same time" as its "first-ever
conference for analysts and big institutional investors" was
held July 17-18, a group of 12 Nike officers and directors
were exercising options to buy Nike stock and selling
467,492 shares, according to Bridget O'Brian in the "Inside
Track" column of today's WALL STREET JOURNAL. The sellers
included Nike President Thomas Clarke, who exercised options
and sold 20,000 shares at prices between $59.75 and $62.38
from July 14 to July 30; and CFO Robert Falcone, who sold
20,000 shares for between $59 and $59.23, from July 11 to
July 14. Nike CEO Phil Knight was "absent from the list of
sellers." Nike Dir of Investor Relations Rick Anguilla said
that company "insiders" can buy or sell shares only four
times a year in periods from 48 hours after an earnings
report and lasting a month. Nike's last earnings report was
July 1. Anguilla: "I'm not sure they (sellers) were
anticipating a bounce from the analyst meeting. A lot of
these people exercising options weren't even there."
O'Brian adds that Nike "points out" that, despite the sales,
the "insiders haven't fundamentally cut their holdings in
the company." Nike President Clark, for instance, still
holds options on 500,000 shares (WALL STREET JOURNAL, 8/27).
MORE NIKE: Dan Dorfman reports in FINANCIAL WORLD that
money managers believe Nike, which "recently tripped when it
reported lower-than-expected earnings for the fiscal fourth
quarter ... could be in for a more serious stumble in the
months ahead." Dorfman points to a private survey which
"found a sneaker inventory glut at some big footwear chains"
and developing "consumer price resistance," coupled with
"bad tidings from Nike" as reasons for the concern. Should
the sneaker industry experience a dip, "Nike in particular
could stub its toe" since it "accounts for an estimated 40%
of the sneaker market and 65 to 70% of the high end." In
addition, the company is "said to be hurting somewhat from
inroads by an increasingly competitive rival, Adidas."
Dorfman adds that some brokerage houses, including Morgan
Stanley and Merrill Lynch, "are chopping their fiscal 1998
earnings estimate on Nike" (FINANCIAL WORLD, 8-9/97 issue).
