Demand for Nike products "is overwhelming inventory,
reducing net income," reports Richard Reed in this morning's
PORTLAND OREGONIAN. "It's a headache that just won't quit.
Worldwide orders for Nike athletic footwear and apparel scheduled
for delivery between now and January total $1.66B -- up 28
percent over the same period last year, when U.S. orders were
depressed." But, U.S. inventory is down 46% from '93, leaving
just 5.5M pairs of shoes, while global inventories are down 26%.
Nike's 1st-quarter net income fell from $114.1M in '93 to $106M
this year, but global revenues increased 6 percent to a record
high of $1.17B (Richard Reed, PORTLAND OREGONIAN, 9/19).
REAX FROM THE TOP: Nike Chair Philip Knight: "Last year at
this time, media and investment sources were sounding the death
knell of branded athletic footwear. Our U.S. results should give
investors great confidence in the resiliency of the Nike brand
and in our ability to lead the market with innovative products."
Nike President Thomas Clarke: "The magnitude of the orders
really reflects the continued strength of the Nike brand, but I
also think it reflects of the athletic footwear industry around
the world" (PORTLAND OREGONIAN, 9/19).
DOMESTIC AND INTERNATIONAL STATS: U.S. revenues during the
1st-quarter of this year grew 55% in outdoor shoes; 31% in
walking; 27% in tennis; 17% in cross-training; and 11% in
running. Basketball shoes sales declined 14%, "but Nike
executives said that orders were up again in that category."
International revenues jumped 13% overall, but dropped 34% in
France and 28% in Germany. Knight: "We are making progress in
... those countries, but tangible benefits may not be realized
until fiscal 1996." Sales in jumped in Spain 163%; in Italy and
Mexico, 37%; and in Canada, 12% (PORTLAND OREGONIAN, 9/19).
