NIKE, Inc. reported revenues increased 10% to $3.5 billion for the second quarter November 30, compared to $3.1 billion for the same period last year. Net income grew 15% to $301.1 million, or $1.14 per diluted share, compared to $261.9 million, or 97 cents per diluted share, in the prior year period.

“Led by the outstanding performance of the Nike brand in the U.S. and Americas regions, we delivered strong growth in revenue and profitability in the second quarter,” said William D. Perez, President and Chief Executive Officer, Nike, Inc. “In addition to the Nike brand, our other businesses also delivered double digit growth in revenue and profits. The power of our Nike, Inc. portfolio was evident this quarter, with strength in the U.S., China and Latin America balancing more challenging results in Western Europe and Japan. We feel very good about our business overall, and our prospects for delivering on our financial goals for the fiscal year.”*

Futures Orders

NKE reported worldwide futures orders for athletic footwear and apparel, scheduled for delivery from December 2005 through April 2006, totaling $5.2 billion, 2.5% higher than such orders reported for the same period last year. Changes in currency exchange rates significantly reduced this growth relative to recent quarters, as global futures orders grew by 7% excluding the impact of currency changes.

By region, futures orders for the U.S. increased 9%; Europe (which includes the Middle East and Africa) declined 6%; Asia Pacific grew 2%; and the Americas increased 23%. Changes in currency exchange rates reduced the reported futures orders by eight percentage points in Europe and by seven percentage points in the Asia Pacific region. In the Americas region, three percentage points of the increase were due to changes in currency exchange rates.

Regional Highlights

U.S.

During the second quarter, U.S. revenues increased 15% to $1.3 billion versus $1.1 billion for the second quarter of fiscal 2005. U.S. athletic footwear revenues increased 19% to $811.5 million. Apparel revenues increased 13% to $433.8 million. Equipment revenues declined 8% to $61.8 million. U.S. pre-tax income improved 14% to $265.7 million.

Europe

Revenues for the European region grew 2% to $977.4 million, up from $961.1 million for the same period last year. Foreign currency exchange rates did not have a material impact on this growth for the quarter. Footwear revenues were $533.2 million, up slightly from $531.8 million a year ago. Apparel revenues increased 3% to $379.6 million and equipment revenues increased 9% to $64.6 million. Pre-tax income declined 2% to $194.2 million.

Asia Pacific

Revenues in the Asia Pacific region grew 4% to $503.3 million compared to $483.5 million a year ago. Two percentage points of this growth were the result of changes in currency exchange rates. Footwear revenues were up 4% to $245.4 million, apparel revenues increased 3% to $214.6 million and equipment revenues grew 11% to $43.3 million. Pre- tax income increased 3% to $115.2 million.

Americas

Revenues in the Americas region increased 33% to $252.1 million, an improvement from $189.3 million in the second quarter of fiscal 2005. Currency exchange rates contributed 13 percentage points to this growth rate. Footwear revenues were up 37% to $178.1 million, apparel revenues increased 18% to $55.4 million and equipment jumped 48% to $18.6 million. Pre-tax income was up 30% to $57.4 million.

Other Businesses

Other business revenues, which include Converse Inc., NIKE Golf, Bauer NIKE Hockey Inc., Cole Haan, Hurley International LLC and Exeter Brands Group LLC, grew 14% to $434.8 million from $382.4 million last year. Pre-tax income was up 11% to $23.0 million.

Overall corporate gross margins were 43.5% of sales in Q2 compared to 44.1% last year. Selling and administrative expenses were 30.4% of second quarter revenues, compared to 30.9% last year. The effective tax rate for the second quarter was 35.1%.

At quarter end, global inventories stood at $1.9 billion, an increase of 10 percent from November 30, 2004. Cash and short-term investments were $2.1 billion at the end of the quarter, compared to $1.7 billion last year.

During the quarter, the Company purchased a total of 2,926,400 shares for approximately $240 million in conjunction with the Company's four-year, $1.5 billion share repurchase program that was approved by the Board of Directors in June 2004.

                                 NIKE, Inc.
                      CONSOLIDATED FINANCIAL STATEMENTS
                    FOR THE PERIOD ENDED NOVEMBER 30, 2005
                     (In millions, except per share data)

                     QUARTER ENDING             YEAR TO DATE ENDING

  INCOME                                  %                         %
   STATEMENT     11/30/2005  11/30/2004  Chg 11/30/2005 11/30/2004 Chg
  Revenues        $3,474.7    $3,148.3   10%  $7,336.7  $6,710.1    9%
  Cost of sales    1,963.3     1,760.2   12%   4,077.2   3,736.2    9%
  Gross margin     1,511.4     1,388.1    9%   3,259.5   2,973.9   10%
                     43.5%       44.1%           44.4%     44.3%

  Selling and
   administrative
   expense         1,054.7       973.2    8%   2,159.1   2,046.8    5%
                     30.4%       30.9%           29.4%     30.5%

  Interest
   (income)
   expense, net       (5.7)        3.7    --     (12.1)      8.5    --
  Other
   (income)
   expense, net       (1.4)        8.2    --     (11.3)     10.1    --


  Income
   before
   income
   taxes             463.8       403.0   15%   1,123.8     908.5   24%

  Income taxes       162.7       141.1   15%     390.4     319.8   22%
                     35.1%       35.0%           34.7%     35.2%


  Net income        $301.1      $261.9   15%    $733.4    $588.7   25%

  Diluted EPS        $1.14       $0.97   18%     $2.77     $2.18   27%

  Basic EPS          $1.16       $0.99   17%     $2.82     $2.24   26%