NIKE Reports First Quarter Earnings Per Share of $1.12

NIKE Reports First Quarter Earnings Per Share of $1.12

September 21, 2007

Revenue up 11 percent; worldwide futures orders up 11.5
percent

One-time tax benefit contributes $0.20 to earnings per
share

    BEAVERTON, Ore., Sept. 21 /Xinhua-PRNewswire/ -- 

    NIKE, Inc. (NYSE: NKE) today reported financial results
for the first quarter, ended August 31, 2007. Revenue grew
11 percent to $4.7 billion, compared to $4.2 billion for
the same period last year. Changes in currency exchange
rates increased revenue growth by 3 percentage points for
the quarter. First quarter net income increased 51 percent
to $569.7 million, compared to $377.2 million in the prior
year and diluted earnings per share increased 51 percent to
$1.12, versus $0.74 last year. 

    (Logo:
http://www.newscom.com/cgi-bin/prnh/19990818/NIKELOGO)

    The first quarter effective tax rate reflects a
one-time benefit related to utilization of past foreign
losses, contributing $0.20 per diluted share.  The Company
has now taken the steps necessary to realize this tax
benefit, reducing the effective tax rate for the quarter by
approximately 15.6 points.

    Mark Parker, President and CEO of Nike, Inc. said,
"We're off to a strong start as our first quarter
results reflect the power of our brands as well as the
strength and diversification of the Nike, Inc. portfolio.
We have an aggressive growth plan to achieve $23 billion in
revenue by fiscal year 2011, and we're well on our
way."*

    Parker continued, "As we execute against our
long-term growth priorities, we will continue to
distinguish ourselves as the industry leader with our
relentless focus on creating innovative product, and on
bringing a new level of excitement and energy to
retail."*

    Futures Orders

    The Company reported worldwide futures orders for
athletic footwear and apparel, scheduled for delivery from
September 2007 through January 2008, totaling $5.9 billion,
11.5 percent higher than such orders reported for the same
period last year. Changes in currency exchange rates
increased reported orders growth by 1 percentage point.*

    By region, futures orders for the U.S. increased 3
percent; Europe (which includes the Middle East and Africa)
and Asia Pacific both increased 17 percent; and the Americas
grew 20 percent. Changes in currency exchange rates
increased the reported futures orders growth in Europe by 3
percentage points. Changes in currency exchange rates
increased reported futures orders growth in Asia Pacific by
1 percentage point. In the Americas region changes in
currency exchange rates did not have a significant impact
on futures growth.

    Regional Highlights

    U.S.

    During the first quarter, U.S. revenues increased 2
percent to $1,638.4 million versus $1,601.9 million for the
first quarter of fiscal 2007. U.S. athletic footwear
revenues increased 4 percent to $1,119.9 million. Apparel
revenues decreased 1 percent to $428.0 million. Equipment
revenues declined 1 percent to $90.5 million. U.S. pre-tax
income declined 2 percent to $347.3 million.  

    Europe 

    First quarter revenues for the European region grew 16
percent to $1,477.7 million from $1,270.9 million for the
same period last year.  Changes in currency exchange rates
increased revenue growth by 7 percentage points. Footwear
revenues increased 17 percent to $791.9 million. Apparel
revenues grew by 16 percent to $567.0 million and equipment
revenues increased 14 percent to $118.8 million. Pre-tax
income increased 21 percent to $375.5 million.

    Asia Pacific

    In the first quarter, revenues in the Asia Pacific
region grew 22 percent to $630.8 million compared to $518.4
million a year ago. Changes in currency exchange rates
increased revenue growth by 2 percentage points. Footwear
revenues were up 25 percent to $332.1 million, apparel
revenues increased 20 percent to $240.5 million and
equipment revenues grew 13 percent to $58.2 million.
Pre-tax income increased 52 percent to $159.5 million.
 
    Americas

    Revenues in the Americas region increased 15 percent to
$279.5 million, an improvement from $242.5 million in the
first quarter of fiscal 2007. Currency exchange rates
contributed 4 percentage points to this growth rate.
Footwear revenues were up 15 percent to $198.4 million,
apparel revenues increased 14 percent to $58.3 million and
equipment revenues grew 20 percent to $22.8 million.
Pre-tax income was up 16 percent to $57.9 million.

    Other Businesses

    For the first quarter, Other business revenues, which
include Converse Inc., NIKE Golf, Cole Haan Holdings
Incorporated, NIKE Bauer Hockey Corp., Hurley International
LLC and Exeter Brands Group LLC, grew 12 percent to $628.7
million from $560.4 million last year. Pre-tax income
increased 9 percent to $95.2 million for the quarter. The
prior year first quarter results included a $14.2 million
benefit resulting from the favorable settlement of
arbitration proceedings against Converse; excluding this
benefit, pre-tax income for the Other businesses grew 30
percent.

    The Company also announced today its intent to explore
the sale of Nike Bauer Hockey. Following a strategic review
of the company's affiliate brands portfolio, Nike determined
that despite the strength of the business, Nike Bauer Hockey
does not align with the Company's long-term growth
priorities and exploring a sale is the best strategic
alternative. The Company expects the exploration process
and any potential sale that maximizes Nike Bauer Hockey's
value to Nike will be completed within the current fiscal
year. 

    Commenting on the anticipated sale, Parker said:
"We are focused on investing our resources where we
will achieve the greatest returns, both within the Nike
brand and within a strong portfolio of complementary
affiliate brands. We're confident it's the right choice for
our Company as we maximize our opportunities and drive
toward our long-term growth targets. Given Nike Bauer's
market leading position, we believe we will be able to
effectively execute this transaction."

    Income Statement Review

    Gross margins were 44.8 percent compared to 44.1
percent for the same period last year. 

    Selling and administrative expenses were 30.8 percent
of first quarter revenues, which is comparable to the same
period last year. 

    The effective tax rate for the first quarter declined
significantly to 15.0 percent primarily due to the one-time
tax benefit described above.

    Balance Sheet Review

    At quarter end, global inventories stood at $2.2
billion, an increase of less than 1 percent from August 31,
2006.  Cash and short-term investments were $2.8 billion at
the end of the quarter, compared to $1.7 billion at the end
of the first quarter last year. 

    Share Repurchase

    During the first quarter, the Company repurchased a
total of 5,757,101 shares for approximately $321.5 million
in conjunction with the Company's four-year, $3 billion
share repurchase program approved by the Board of Directors
in June 2006.  As of the end of the first quarter the
Company has repurchased a total of 23.8 million shares for
approximately $1.1 billion under this program.  

    NIKE, Inc. based near Beaverton, Oregon, is the world's
leading designer, marketer and distributor of authentic
athletic footwear, apparel, equipment and accessories for a
wide variety of sports and fitness activities.  Wholly owned
Nike subsidiaries include Converse Inc., which designs,
markets and distributes athletic footwear, apparel and
accessories; Cole Haan Holdings Incorporated, which
designs, markets and distributes luxury shoes, handbags,
accessories and coats; NIKE Bauer Hockey Corp., a leading
designer and distributor of hockey equipment; Hurley
International LLC, which designs, markets and distributes
action sports and youth lifestyle footwear, apparel and
accessories; and Exeter Brands Group LLC, which designs and
markets athletic footwear and apparel for the value retail
channel.

    NIKE's earnings releases and other financial
information are available on the Internet at
http://www.nikebiz.com/investors.   

    * The marked paragraphs contain forward-looking
statements that involve risks and uncertainties that could
cause actual results to differ materially.  These risks and
uncertainties are detailed from time to time in reports
filed by NIKE with the S.E.C., including Forms 8-K, 10-Q,
and 10-K. Some forward-looking statements in this release
concern changes in futures orders that are not necessarily
indicative of changes in total revenues for subsequent
periods due to the mix of futures and "at once"
orders, exchange rate fluctuations, order cancellations and
discounts, which may vary significantly from quarter to
quarter, and because a significant portion of the business
does not report futures orders.

(Tables Follow)



NIKE, Inc.
CONSOLIDATED FINANCIAL STATEMENTS
FOR THE PERIOD ENDED AUGUST 31, 2007
(In millions, except per share data)
                                                           
             
                                                           
             
                                          QUARTER ENDED 
    INCOME STATEMENT                08/31/2007    
08/31/2006    %Chg    
    Revenues                         $4,655.1      
$4,194.1      11%    
    Cost of sales                     2,568.1       
2,344.9      10%    
    Gross margin                      2,087.0       
1,849.2      13%    
                                        44.8%         
44.1%                 
                                                           
             
    Selling and administrative 
     expense                          1,434.7       
1,289.7      11%    
                                        30.8%         
30.8%            
                                                           
             
    Interest income, net                (24.6)        
(13.1)     88%    
    Other expense (income), net           6.6          
(3.2)   -306%    
                                                           
             
                                                           
             
    Income before income taxes          670.3         
575.8      16%    
                                                           
             
    Income taxes                        100.6         
198.6     -49%    
                                        15.0%         
34.5%            
                                                           
             
    Net income                         $569.7        
$377.2      51%    
                                                           
             
    Diluted EPS                         $1.12         
$0.74      51%    
                                                           
             
    Basic EPS                           $1.14         
$0.75      52%    
                                                           
             
    Weighted Average Common Shares Outstanding:            

    Diluted                             507.3         
512.0             
    Basic                               499.4         
505.4             
    Dividends declared                 $0.185        
$0.155             



    NIKE, Inc.                                             
             
    BALANCE SHEET *                               
08/31/2007      08/31/2006 
       ASSETS                                           
(in millions)        
    Current assets:                                        
             
      Cash and equivalents                         
$1,973.9        $1,030.7 
      Short-term investments                          
817.4           693.9 
      Accounts receivable, net                      
2,774.1         2,557.3 
      Inventories                                   
2,154.9         2,134.3 
      Deferred income taxes                           
220.3           188.8 
      Prepaid expenses and other current assets       
400.9           382.3 
                                                           
             
    Total current assets                            
8,341.5         6,987.3 
                                                           
             
    Property, plant and equipment                   
3,732.5         3,451.1 
      Less accumulated depreciation                 
2,014.9         1,802.4 
      Property, plant and equipment, net            
1,717.6         1,648.7 
                                                           
             
    Identifiable intangible assets, net               
409.5           407.5 
    Goodwill                                          
130.8           130.8 
    Deferred income taxes and other assets            
414.1           396.2 
                                                           
             
    Total assets                                  
$11,013.5        $9,570.5 
                                                           
             
      LIABILITIES AND SHAREHOLDERS' EQUITY                 
               
    Current liabilities:                                   
             
      Current portion of long-term debt                
$5.8           $30.5 
      Notes payable                                   
140.2            61.3 
      Accounts payable                                
971.5           867.7 
      Accrued liabilities                           
1,313.9         1,292.8 
      Income taxes payable                            
184.0           152.5 
                                                           
             
      Total current liabilities                     
2,615.4         2,404.8 
                                                           
             
    Long-term debt                                    
420.9           380.4 
    Deferred income taxes and other liabilities       
622.3           564.1 
    Redeemable preferred stock                          
0.3             0.3 
    Shareholders' equity                            
7,354.6         6,220.9 
                                                           
             
    Total liabilities and shareholders' equity    
$11,013.5        $9,570.5 
                                                           
             
    * Certain prior year amounts have been reclassified to
conform to fiscal 
      year 2008 presentation. These changes had no impact
on previously 
      reported results of operations or shareholders'
equity. 



    NIKE, Inc.                                             
             
                                      QUARTER ENDED 
    DIVISIONAL REVENUES         08/31/2007    08/31/2006   
 %Chg
                                      (In millions)   
    U.S. Region                                            
             
         Footwear                $1,119.9      $1,079.1    
   4%        
         Apparel                    428.0         431.5    
  -1%        
         Equipment                   90.5          91.3    
  -1%        
              Total               1,638.4       1,601.9    
   2%        
                                                           
             
    EMEA Region                                            
             
         Footwear                   791.9         679.5    
  17%        
         Apparel                    567.0         487.0    
  16%        
         Equipment                  118.8         104.4    
  14%        
              Total               1,477.7       1,270.9    
  16%        
                                                           
             
    Asia Pacific Region                                    
             
         Footwear                   332.1         266.0    
  25%        
         Apparel                    240.5         200.9    
  20%        
         Equipment                   58.2          51.5    
  13%        
              Total                 630.8         518.4    
  22%        
                                                           
             
    Americas Region                                        
             
         Footwear                   198.4         172.3    
  15%        
         Apparel                     58.3          51.2    
  14%        
         Equipment                   22.8          19.0    
  20%        
              Total                 279.5         242.5    
  15%        
                                                           
             
                                  4,026.4       3,633.7    
  11%        
                                                           
             
    Other businesses                628.7         560.4    
  12%        
                                                           
             
    Total NIKE, Inc. revenues    $4,655.1      $4,194.1    
  11%        
                                                           
             

                                                           
             
    NIKE, Inc.                                             
             
                                      QUARTER ENDED        
   % 
    PRE-TAX INCOME(1),(2)       08/31/2007     08/31/2006  
  Chg 
                                      (In millions)
                                                           
           
    U.S. Region                    $347.3        $355.7    
  -2%        
    EMEA Region                     375.5         310.6    
  21%        
    Asia Pacific Region             159.5         104.9    
  52%        
    Americas Region                  57.9          49.7    
  16%        
    Other businesses                 95.2          87.4    
   9%        
    Corporate(3)                   (365.1)       (332.5)   
 -10%        
                                                           
             
    Total pre-tax income(1)        $670.3        $575.8    
  16%        
                                                           
             
    (1) The Company evaluates performance of individual
operating segments 
        based on pre-tax income.  Total pre-tax income
equals income before 
        income taxes as shown on the Consolidated Income
Statement. 
    (2) Certain prior year amounts have been reclassified
to conform to 
        fiscal year 2008 presentation.  These changes had
no impact on 
        previously reported results of operations or
shareholders' equity. 
    (3) "Corporate" represents items necessary to
reconcile to total pre-tax 
        income, which includes corporate costs that are not
allocated to the 
        operating segments for management reporting and
intercompany 
        eliminations for specific items in the Consolidated
Income 
        Statement.            


    For more information, please contact:

    NIKE, Inc.

     Media:
     Alan Marks
     Phone: [phone]

     Investors:
     Pamela Catlett
     Phone: [phone]

     Website: http://www.nikebiz.com