Nike, Inc. reported revenues for the third quarter ended February 29, 2004 increased 21% to $2.9 billion, versus $2.4 billion for the same period last year. Third quarter net income totaled $200.3 million, or $0.74 per diluted share, compared to $124.7 million, or $0.47 per diluted share, in the prior year.

Philip H. Knight, Chairman and Chief Executive Officer said, “It was another great quarter for Nike. Top and bottom line results were again driven by healthy consumer demand for innovative products and the strength of Nike's diverse portfolio of businesses. For the first nine months of the year, Nike's revenue has grown 14 percent and earnings per share* are up 29 percent. As we look ahead, we are optimistic about the significant long-term growth opportunities for our company.”

Futures Orders

The Company reported worldwide futures orders for athletic footwear and apparel scheduled for delivery from March 2004 through July 2004, of $4.7 billion, 9.9% higher than such orders reported for the same period last year. Approximately four points of this growth were due to changes in currency exchange rates.

By region, futures orders for the USA were up 4.5%; Europe grew by 11%; Asia Pacific increased 23%; and the Americas increased 11%. In Europe, eight points of the increase were due to changes in currency exchange rates. Currency exchange rate movements contributed approximately five points and two points, respectively, to futures growth in the Asia Pacific and Americas regions.

Knight continued, “Growing consumer demand for Nike footwear and apparel in our international markets helped drive the 9.9 percent increase in worldwide futures. Additionally, we are pleased by the continued strength of our U.S. business, which recorded its strongest futures orders growth in eight quarters.”

United States

During the third quarter, U.S. revenues increased four percent to $1.17 billion versus $1.13 billion for the third quarter of 2003. U.S. athletic footwear revenues increased one percent to $772.8 million. Apparel revenues increased seven percent to $329.3 million. Equipment revenues increased 13 percent to $67.4 million.

Europe

Revenues for the European region (which includes the Middle East and Africa) grew 36 percent to $880.0 million, up from $645.8 million for the same period last year. Twenty-one points of this growth were the result of changes in currency exchange rates. Footwear revenues increased 48 percent to $537.7 million, apparel revenues increased 19 percent to $284.1 million and equipment revenues increased 34 percent to $58.2 million.

Asia Pacific

Revenues in the Asia Pacific region grew 21 percent to $402.4 million compared to $331.6 million a year ago. Ten points of this growth were the result of changes in currency exchange rates. Footwear revenues were up 15 percent to $214.2 million; apparel revenues increased 30 percent to $150.1 million and equipment grew 26 percent to $38.1 million.

Americas

Revenues in the Americas region increased 26 percent to $135.0 million, an improvement from $107.4 million in the third quarter of 2003. This growth rate reflected an 11 point increase due to changes in currency exchange rates. Footwear revenues were up 29 percent to $89.2 million, apparel revenues increased 21 percent to $36.0 million and equipment improved 15 percent to $9.8 million.

Other Revenues

Other revenues, which include Nike Golf, Converse, Inc., Bauer Nike Hockey Inc., Cole Haan(R), and Hurley International LLC, grew 68 percent to $317.1 million from $188.2 million last year. The acquisition of Converse accounted for 39 percentage points of this increase.

Income Statement Review

Gross margins were 42.1 percent compared to 40.7 percent last year. Selling and administrative expenses were 30.7 percent of third quarter revenues, compared to 31.6 percent last year. The effective tax rate for the third quarter was 34.8 percent.

Balance Sheet Review

At quarter end, global inventories stood at $1.7 billion, a 10 percent increase from February 28, 2003. Cash and short-term investments were $914.7 million at the end of the quarter, compared to $443.2 million last year.

Share Repurchase

During the quarter, the Company purchased a total of 754,900 shares for approximately $53.6 million in conjunction with the Company's second four-year, $1 billion share repurchase program that was approved by the Board of Directors in June 2000. 

                NIKE, INC. CONSOLIDATED FINANCIAL STATEMENTS
                   FOR THE QUARTER ENDED FEBRUARY 29, 2004
                     (In millions, except per share data)

     INCOME                 QUARTER ENDING           YEAR TO DATE ENDING
     STATEMENT       2/29/04   2/28/03     % Chg   2/29/04     2/28/03  % Chg
    Revenues        $2,904.0  $2,400.9     21%  $8,766.0   $7,711.9    14%
    Cost of Sales    1,682.1   1,424.9     18%   5,043.0    4,568.7    10%
    Gross Margin     1,221.9     976.0     25%   3,723.0    3,143.2    18%
                       42.1%     40.7%             42.5%      40.8%

    SG&A               892.0     758.1     18%   2,664.1    2,324.6    15%
                       30.7%     31.6%             30.4%      30.1%

    Interest Expense,
     net                 5.5       7.0    -21%      21.1       21.4    -1%
    Other               17.2      23.5    -27%      55.3       46.1    20%

    Income before
     income taxes and
     cumulative effect
     of accounting
     change            307.2     187.4     64%     982.5      751.1    31%

    Income Taxes       106.9      62.7     70%     341.9      257.2    33%
                       34.8%     33.5%             34.8%      34.2%
    Income before
     cumulative effect
     of accounting
     change            200.3     124.7     61%     640.6      493.9    30%
    Cumulative effect
     of accounting
     change, net of
     income taxes         --        --                --      266.1
    Net Income        $200.3    $124.7     61%    $640.6     $227.8   181%

    Diluted EPS
     -- before
     accounting change $0.74     $0.47     57%     $2.38      $1.84    29%
    Cumulative effect
     of accounting
     change               --        --                --      (0.99)
                       $0.74     $0.47     57%     $2.38      $0.85   180%
    Basic EPS -- before
     accounting change $0.76     $0.47     62%     $2.43      $1.87    30%
    Cumulative effect
     of accounting
     change               --        --                --      (1.01)
                       $0.76     $0.47     62%     $2.43      $0.86   183%

    Dividend           $0.20     $0.14             $0.54      $0.40


     NIKE, Inc.

    Divisional          QUARTER ENDING            YEAR TO DATE ENDING
     Revenues * 2/29/2004 2/28/2003  % Chg   2/29/2004   2/28/2003  % Chg
    USA Region
      Footwear     $772.8    $761.4     1%    $2,219.2    $2,222.5     0%
      Apparel       329.3     307.1     7%     1,074.1     1,005.3     7%
      Equipment      67.4      59.4    13%       215.7       215.3     0%
        Total     1,169.5   1,127.9     4%     3,509.0     3,443.1     2%

    EMEA Region
      Footwear      537.7     363.1    48%     1,600.2     1,292.5    24%
      Apparel       284.1     239.4    19%       950.9       845.1    13%
      Equipment      58.2      43.3    34%       191.3       158.8    20%
        Total       880.0     645.8    36%     2,742.4     2,296.4    19%

    Asia Pacific Region
      Footwear      214.2     185.8    15%       622.6       536.3    16%
      Apparel       150.1     115.6    30%       437.9       365.6    20%
      Equipment      38.1      30.2    26%       102.9        87.9    17%
        Total       402.4     331.6    21%     1,163.4       989.8    18%

    Americas Region
      Footwear       89.2      69.1    29%       296.0       245.1    21%
      Apparel        36.0      29.8    21%       117.3       108.9     8%
      Equipment       9.8       8.5    15%        31.5        29.2     8%
        Total       135.0     107.4    26%       444.8       383.2    16%

                  2,586.9   2,212.7    17%     7,859.6     7,112.5    11%

    Other           317.1     188.2    68%       906.4       599.4    51%

    Total
     NIKE Inc.
     Revenues    $2,904.0  $2,400.9    21%    $8,766.0    $7,711.9    14%