NIKE, Inc reported revenue for the fiscal first quarter ended August 31 revenues increased 8% to $3.9 billion, compared to $3.6 billion for the same period last year. Net income grew 32% to $432.3 million, or $1.61 per diluted share, compared to $326.8 million, or $1.21 per diluted share, for the prior year. The company reported sales growth across each of its regions and product business units, with particular strength in U.S. footwear in the quarter for both revenues and futures orders.

“A strong product pipeline and our global management team's ability to consistently execute across our brand portfolio drove very strong performance for the first quarter,” said William D. Perez, president and CEO. “Our results show continued healthy demand for NIKE product worldwide and we remain optimistic about our ability to meet our future goals.”

Futures Orders

The Company reported worldwide futures orders for athletic footwear and apparel, scheduled for delivery from September 2005 through January 2006, totaling $4.9 billion, 11.0% higher than such orders reported for the same period last year. Changes in currency exchange rates had no significant impact on this growth.

By region, futures orders for the U.S. increased 12%; Europe (which includes the Middle East and Africa) increased four percent; Asia Pacific grew 15%; and the Americas increased 32%. Changes in currency exchange rates reduced the reported futures orders growth in Europe by two percentage points. Futures orders growth in Asia Pacific was not significantly impacted by changes in currency exchange rates. In the Americas region, three percentage points of the increase were due to changes in currency exchange rates.

Regional Highlights

United States

During the first quarter, U.S. revenues increased 8% to $1.5 billion versus $1.4 billion for the first quarter of fiscal 2005. U.S. athletic footwear revenues increased 11% to $1.0 billion. Apparel revenues increased one percent to $395.5 million. Equipment revenues increased four percent to $92.3 million. U.S. pre-tax income improved seven percent to $345.2 million.

Europe

Revenues for the European region grew 5% to $1.22 billion, up from $1.16 billion for the same period last year. Onepercentage point of this growth was the result of changes in currency exchange rates. Footwear revenues increased three percent to $685.1 million, apparel revenues increased six percent to $435.2 million and equipment revenues increased 14% to $97.2 million. Pre-tax income rose 34% to $330.2 million.

Asia Pacific

Revenues in the Asia Pacific region grew 13% to $459.6 million compared to $406.0 million a year ago. Three percentage points of this growth were the result of changes in currency exchange rates. Footwear revenues were up nine percent to $237.4 million, apparel revenues increased 19% to $176.5 million and equipment revenues grew 18% to $45.7 million. Pre- tax income increased 44% to $91.4 million.

Americas

Revenues in the Americas region increased 32% to $213.7 million, an improvement from $161.7 million in the first quarter of fiscal 2005. Currency exchange rates contributed 12percentage points to this growth rate. Footwear revenues were up 37% to $156.9 million, apparel revenues increased 15% to $40.7 million and equipment jumped 41% to $16.1 million. Pre-tax income was up 119% to $44.6 million.

Other Revenues

Other revenues, which include Converse Inc., NIKE Golf, Bauer NIKE Hockey Inc., Cole Haan, Hurley International LLC and Exeter Brands Group LLC, grew six percent to $462.3 million from $434.5 million last year. Pre-tax income was essentially flat versus the prior year at $40.0 million.

Income Statement Review

Gross margins were 45.3% compared to 44.5% last year. Selling and administrative expenses were 28.6% of first quarter revenues, compared to 30.1% last year. This decrease in selling and administrative expenses as apercentage of revenue was due, in part, to a change in timing of certain marketing expenses. The effective tax rate for the first quarter was 34.5%.

Balance Sheet Review

At quarter end, global inventories stood at $1.9 billion, an increase of 11% from August 31, 2004. Cash and short-term investments were $1.9 billion at the end of the quarter, compared to $1.3 billion last year.

                                 NIKE, Inc.
                      CONSOLIDATED FINANCIAL STATEMENTS
                     FOR THE PERIOD ENDED AUGUST 31, 2005
                     (In millions, except per share data)


  INCOME                            QUARTER ENDING
  STATEMENT                    08/31/2005      08/31/2004         % Chg
  Revenues                       $3,862.0        $3,561.8            8%
  Cost of sales                   2,113.9         1,976.0            7%
  Gross margin                    1,748.1         1,585.8           10%
                                    45.3%           44.5%

  Selling and administrative      1,104.4         1,073.6            3%
                                    28.6%           30.1%

  Interest (income) expense, net    (6.4)             4.8            --
  Other (income) expense, net       (9.9)             1.9            --


  Income before income taxes        660.0           505.5           31%

  Income taxes                      227.7           178.7           27%
                                    34.5%           35.4%


  Net income                       $432.3          $326.8           32%

  Diluted EPS                       $1.61           $1.21           33%

  Basic EPS                         $1.66           $1.24           34%