Nike CEO quits, replaced by Parker

Sportswear giant Nike announced today that chief executive William Perez has resigned from his position following disagreements with founder and chairman Philip Knight. The company has appointed co-president Mark Parker to replace Perez. Parker will also take his place on the company's Board of Directors.

Perez had only been with Nike for 13 months, joining the company from SC Johnson, before his resignation was announced.

“Succession at any company is challenging, and unfortunately the expectations that Bill and I and other had when he joined the company a year ago didn't play out as we had hoped. I want to personally thank Bill for his dedication and commitment over the past year,” Knight said in a statement.

Meanwhile, Parker has been with Nike for 27 years. He is responsible for the Nike Air franchise, among others. He served in various management functions in product design, development, marketing and brand management. Prior to 2001, when Parker was appointed to head up the Nike brand with co-president Charlie Denson, he ran the company's footwear and apparel business. Denson will now carry on as president of the Nike brand.

“I've spent my life building the Nike brand, and I'm excited to lead one of the world's most dynamic organisations,” Parker said. “I am committed to continue delivering profitable growth for our shareholder, creating distinctive product innovation and compelling brand connections for consumers, and building strong relationships with our retail partners. We have a strong management team in place that I will continue to develop, and I have tremendous confidence in our ability to continue growing the Nike Inc portfolio and delivering long-term value to shareholders.”

www.nike.com
23 January 2006

Nike focuses on emerging markets

Sporting goods giant Nike is set to target emerging markets in China, Brazil, Mexico and India, chief executive Bill Perez announced on Tuesday. Since he took over from Nike founder Phil Knight, he has undertaken and concluded an “exhaustive” review of the company. He told Wall Street analysts that “for the most part we have the right game plan”. He went on to say: “You won't see radical change; you'll see improvements in how we are managing our business.”

Among the changes, Perez indicated that the company would aggressively target emerging markets. “To put it simply we want to own these markets,” he said. He added that Nike was working on producing a more consistent global strategy for use of the internet and its Nike brand stores. He pointed out that the firm remained committed to its retail trading partners “where possible”.
Furthermore, Perez said that Nike wanted to improve its lower cost shoe and clothing division. The Starter shoe brand is part of this, and is currently sold at Wal-Mart.

Perez chose to make these statements at the release of the company's second quarter earnings. Nike reported a quarterly rise in profits of 15 percent to $301.1 million (£171.9 million), thanks to a strong growth in US athletic shoe sales.
Overall sales jumped 10 percent to $3.5 billion. US athletic footwear sales rose 19 percent to $811.5 million. Jordan brand shoes performed particularly well, with an estimated 6 percent of the US footwear market in the year ended November.

Despite "better than expected earnings, the future growth looks a little less robust than analysts had been expecting," McAdams Wright Ragen analyst Jamelah Leddy told Reuters.
Although future orders in the US grew 9 percent, future global orders rose only 2.5 percent, a figure that did not satisfy analysts. Retail sales in Europe and Japan suffered and the strengthening of the dollar against the euro and the yen did not help matters.

www.nike.com
21 December 2005

Nike appoints Exeter president

Nike Inc has appointed chief financial officer of Converse Lisa Kempa president of its Exeter Brands Group division, in a bid to accelerate growth.
With this appointment Exeter, which includes the Starter, Team Starter and Asphalt brands and caters to value retailers such as Wal-Mart, will enter a closer working relationship with Converse, the company said in statement.

“Putting Exeter under the leadership of Lisa Kempa and creating a strong link to the expertise and resources at Converse enables us to accelerate growth and competitively leverage the strengths of the Nike Inc. portfolio,” said Nike chief executive Bill Perez.
Kempa, who replaces Mary Gleason, whose former company, Group 3 Design, relaunched the Starter athletic label five years ago, will continue to report to Converse chief executive Jack Boys. Meanwhile, Gleason said in a statement that she will “return to developing new brand opportunities”.

Nike bought the Starter properties in 2004 in an effort to expand its portfolio outside the core Nike label.

www.nike.com
17 November 2005

Livestrong fashions

Six-time Tour de France winner Lance Armstrong has joined forces with Nike to produce a footwear and apparel line for his Livestrong campaign. The cyclist was diagnosed with cancer in 1996 but beat the odds and went on to win yet another gruelling Tour de France.

Last year the Lance Armstrong Foundation managed to raise $50 million through the sale of 50 million yellow wristbands. Now Armstrong is diversifying into fashion.

The 10/2 Collection from Nike is a lifestyle and performance product line, inspired by Lance's joie de vivre. It looks to both his driven side and his casual side and naturally, yellow is the colour of choice. For him it symbolizes hope and of course it is the colour of the jersey he wore to win the Tour de France six times. Each product therefore features a yellow band.

Last weekend stores in the US like NikeTown, Nordstroms, Finish Line and specialty cycling shops. The line is also available at www.wearyellow.com and www.niketown.com.

5 July

New CEO Nike reaffirms strategy

Bill Perez, Nike's new CEO of six months, has reaffirmed the firm's strategy regarding the development of its non-Nike brands. "While the Nike brand is the life blood of this company, we will see an increasing percentage (of revenue) coming from other brands," he told analysts and investors in New York on Tuesday. It was his first meeting with investors since replacing Nike co-founder Phil Knight in December.

Perez said he did not want to change Nike's business strategy, but pointed out opportunities in lower cost footwear and clothing through the company's Converse and Starter brands. These sell at lower cost and discount outlets. Nike started selling Starter athletic shoes for $26-38 at Wal-Mart stores in the US this year, and Perez believes there are opportunities for the concept abroad.

Scott Olivet, who overseas the non-Nike other brands division said that Nike was looking to expand its Starter label at Wal-Mart into clothing, with a marketing campaing focused on basketball. The line is expected early next year. "The value customer is evolving, they don't want to settle for last year's colours and styles," he said. Perez also underlined the importance of giving opportunities to younger managers in Nike's manager pool, and to invest more in marketing talent.

www.nike.com
30 June 2005

Nike revenues increase

Sporting goods retailer Nike Inc reported a double-digit increase in revenues for the fiscal year 2005. Earnings per share were up 28 per cent to $ 4,48 (GBP 2,46) and worldwide futures orders increased by 9.5 per cent.

Earnings for the fiscal year 2005 were up 12 per cent to $13.7 billion, compared with $12.3 billion in fiscal 2004. Revenues for the fourth quarter climbed 7 per cent, with earnings per share up 15 per cent to $1,30. Revenues for the full year increased across the board. All regions posted record revenues and profits.

Nike Inc. other business saw a 22 per cent increase in full-year revenues, exceeding $1.7 billion. The company's balance sheet was strengthened by cash and short term investments rising to $1.8 billion. Full net income for 2005 grew 28 per cent to $1.2 billion as opposed to $945.6 million in 2004.

www.nike.com
28 June 2005

New Senior VP Nike Swim

Us fashion designing company Perry Ellis International Inc has appointed Al Derago senior vice president of the Nike swim division. Derago assumed his new position yesterday and will report to Oscar Feldenkreis, president, vice-chairman and COO of Perry Ellis International.

Derago is based in Portland, Orgeon, and will continue to build the firm's established Niek swimwear business, utilising the power of the Nike brand. "Al brings to Perry Ellis over two decades of experience with the Nike brand," said Feldenkreis. "His proven success in sales and merchandising will help us to maximize the possibilities of our Nike swim license."

Derago is the former director of sales for Nike team sports, responsible for total sales in licensed business, institutional team sales, team sports equipment and specialty business. Before that he was general manager of sales merchandising for Nike Apparel. He also gained experience in the field as territory sales manager.

www.nike.com
21 June 2005

Nike To Focus On Womens Ranges

Nike is to look at new strategies for selling and marketing its product to women. The company has started mailing catalogs for its female clothing line, called Nikewomen, to some 600,000 residences. It has also begun to overhaul the nikewomen.com Web site to feature the clothing as well as highlight new workout trends.

Darcy Winslow, general manager for women's fitness sports at Nike, said the new strategy acknowledged that fitness classes have as much appeal as, say, basketball, and that many women want to wear athletic clothing outside the gym, as men have for years. "Few people today, especially women, look at fitness and sports as this regimented portion of their life. Women see working out as melding into the rest of their lives," she said, adding "We used to look at the gym through one lens."

Women consumers say they are less drawn to advertising campaigns built around hero worship, despite the growth of women's sports and expensive contracts to athletes like Mia Hamm and Serena Williams. Nike is not alone in this venture. Adidas Salomon recently signed up the fashion designer Stella McCartney to create a line of workout wear that includes running singlets that would work as streetwear. Reebok International has signed the actress Christina Ricci to be a model for them as many companies merge sports, fashion and entertainment.

"Nike has a tougher time than Reebok or Adidas because of their heritage," he said. "The perception of most consumers and retailers is that Nike is all about performance and sports." "Certainly, it has to look fabulous, but it also has to have a performance capability," said Mindy F. Grossman, vice president of global apparel. The Nikewomen line also arises from the growing importance of apparel to Nike's business.

For the fiscal year that ended May 31, 2004, sales of apparel - for both men and women - increased 6 percent in the United States, to $1.4 billion, while footwear sales rose only 2 percent, to $3.07 billion, according to company reports.

16 May 2005

Nike "swooshes" out of Sears

US sporting goods giant, Nike, is removing its brand from Sears department stores from October 2005.Analysts believe that this may be a move on Nike's part to protect its high-end brand image from Kmart, as it starts selling well-known Sears brands. Last year discount retailer Kmart acquired Sears for $12.3 billion (GBP 6.5 billion) creating the third-largest US retailer, Sears Holding Corp.

Nike was not available for comment on the Sears-Kmart deal.Sears continues to carry other well-known brand name athletics shoes including New Balance, Reebok, Adidas and Skechers. Sears indicated that it planned to "continue talking to Nike".

Sears spokeswoman Lee Antonio told Fibre2Fashion: "We were surprised and although we were disappointed, we respect their brand decision." Nike could not be reached for immediate comment and there has been no confirmation that the company would also pull its brand from the shelves of other mid-priced retail chains like Kohl's Corp.

According to research, a recent fashion shift has taken place in which premium sneakers prompted a spending spree on athletic footwear. This signified a profit gain for major shoe companies.NPD Group data showed that demand for athletic shoes priced over $100 per pair rose 18 per cent in the US to approximately $600 million last year.

Nike's market share in the US athletic shoe market is more than twice that of its biggest rivals, Reebok International Ltd. And Adidas-Salomon. Sales for higher-priced shoes at Nike rose 10 per cent during the last quarter, resulting in a profit of $273.4 million.

www.nike.com
4 May 2005

Nike scores again

The US sportswear giant and the world's biggest athletic shoemaker, Nike Inc., has announced that its third-quarter earnings rose 36 per cent. The growth in earnings was attributed to demand for apparel and tis Shox sneakers in the US and Asia.

The company's net income grew to $273.4 million (GBP 198.55 million) from $200.3 million the year before. Sales for the quarter ending 28 February shot up 14 per cent to $3.31 billion.

Sales in the US were boosted by the expansion of the Shox brand and the introduction of apparel, including women's dancewear. The US is the company's biggest market, while Asia is its fastest growing market.

"This was our sixth consecutive quarter of double-digit revenue and earnings per share growth. These consistently strong results were driven by excellent performance across geographies and brands, coupled with favourable trends in foreign exchange rates. In addition to another strong quarter for our U.S. business, emerging international markets such as China, Russia and Brazil produced significant growth. While the core Nike Brand fueled the majority of our growth, Nike Golf, Converse and Cole Haan were also major contributors to our positive results," said Chief executive Bill Perez, who is expected to continue expanding the business abroad and acquiring brands like Converse to broaden the Nike product range.

John Lewis, president of Chadds Ford, a Pennsylvania-based Gardner Lewis asset management company which manages over $3 billion in assets including 268,300 Nike shares - as of September - said: "(Nike's) business is strong across the board. Internationally the business is still very robust."

www.nike.com
21 March 2005

Nike goes high-tech

Those who love the outdoors and all things gadgets will have the ultimate new toy to play with in the CommJacket, the latest high-performance piece from Nike ACG (that's All Conditions Gear, for the uninformed). Launching in time for one of the coldest seasons on record, the CommJacket has an inbuilt two-way radio, enabling hours of hillside heckling and demotivating banter with your similarly equipped mate.

The jacket was created during a two-year working relationship with Portland mountain Rescue, who needed functional, stress-free communications, the jacket has a radio with integrated speaker, microphone and a "push-to-talk" lapel button. One of the most technically innovative jackets on the market, the CommJacket is certain to revolutionise mobile communications in the peaks. And when you're in the troughs, you can always call in your order at the bar. Nike ACG CommJacket, £400. For enquired call 0800 056 1640

www.nike.com
13 January 2005

Tweed is hot

This summer sportswear company Nike announced that it would be featuring tweed woven by Scottish weavers in its trainers. With an order of 10,000 metres of Harris Tweed, it surprised many by showing support for these Scottish craftsmen instead of the usual sweatshop practices that the company is otherwise associated with.

Positive publicity and a prediction of high sales appear to be the result of supporting the arts. Although the women's trainers are a few weeks late arriving in stores, Nike have already received many requests for orders. Unfortunately, they do not accept reservations. Consumers will simply have to wait until next month.

Harris Tweed is a unique material, handwoven by the islanders of Lewis, Harris, Uist and Barra in their own homes, using pure virgin wool. The wool has been spun and dyed in the Outer Hebrides and the name is protected by the Harris Tweed Act of Parliament in 1993. The trainers will feature the Nike swoosh in Harris Tweed and Harris Tweed's own logo.

The women's shoes will be for sale at Niketown on Oxford Street in London from November at a retail price of £60. Other stores have yet to confirm when they will be receiving the trainers.

www.nike.com
27 October 2004

Nike Launches Disposable Shoe

Imagine a shoe weighing the equivalent of a bag of crisps, costing USD45 with a lifespan of up to 60 miles. The other, priced at USD250, is arguably the most high-tech shoe ever built. It comes with a computer microchip and operating system that analyses a runner's step and starts making cushioning adjustments in the heel of the shoe based on the runner's impact with the particular terrain after just three steps.

Adidas officials are confident their computerized shoe, dubbed the Adidas 1, can be sold to the mass market, with pairs hitting stores in December. Nike doesn't believe its Mayfly is for the majority of runners. Accordingly, the disposable shoes will hit stores this week in America, but will only be available in an extremely limited release that sources have estimated at around 5,000 pairs.

Last month Adidas announced its plans to produce the 1, its website crashed from the traffic and retailers engaged the phonelines. In the 24 hours post-launch, company officials say the shoe was featured on 186 television broadcasts throughout the world.

News of the Mayfly release in America is also expected to cause a stir. After the shoe's air-bubbled foam has worn down, its wearers can send the shoes back to Nike in a self-addressed stamped envelope. The shoe giant will recycle the material to make rubber athletic courts and tracks. Despite having all the elements of well-executed public relations campaigns, officials with both companies insist that the Adidas 1 and the Mayfly aren't gimmicks, citing their historical roots as the driving force behind their innovations.

A warning card in Nike's shoe cautions the runner not to wear the shoes longer than 62 miles, though the shoes won't exactly disintegrate if a runner exceeds that mileage. Despite the constant public focus on the latest and greatest in basketball shoes, running shoes actually outsold basketball shoes in 2003, making up 28 percent of the USD16 billion market, compared to 23.3 percent for the basketball variety.

www.nike.com
23 June 2004

Short Lifespan: The New Breed of Trainers

According to fashionistas, the lifespan of a shoe is a debating matter. A killer heel, if classic and understated, may be worn a few seasons, but a fashion statement like this summer's silver wedges, should, according to trend-followers really not be worn after September. So too are the new breed of trainers, designed to wear out before you do…

The trainer in question is Nike's latest running shoe, cleverly designed to last 62 miles before wearing out. The revolutionary Mayfly, which hits the shops this week, has been made as light as possible to boost the performance of top athletes and is engineered to last for 100km of racing.

At just 135g a shoe, a third the weight of a normal trainer (not including Sketchers!) it is intended to be used solely in events. Marathon events, that is, not bar openings. The minimalist design means the shoes disintegrate after three marathons, while an average running shoe will go on for up to 600 miles. A Nike spokesperson said: "We know that, for every 100g you carry on your feet, you use approximately one per cent more energy to perform at the same level." They did now have an answer, however, for easing the weight of shopping bags on a tired shoulder.
(Don-Alvin Adegeest)

12 August 2003
www.nike.com

Nike Top Fashion Brand

Nike is the top global clothing and footwear brand, according to interbrand. It placed the company at 33 in its 100 global brands, valuing the company at GBP5bn. Other fashion brands listed include Louise Vuitton (45), Gucci (53) and Levi's (77), all of which lost brand value over the past year. Chanel (61), Prada (87), and Polo Ralph Lauren (95) all moved up the list, published in Business Week.

8 August 2003
www.nike.com

Nike shoes wash ashore

Thousands of Nike basketball shoes that spilled from a container ship off of Northern California are adrift in the Pacific Ocean, and some are coming ashore. Three cargo containers went overboard December 15th. Each had about 55-hundred pairs of shoes.

Doctor Curtis Ebbesmeyer, an oceanographer who tracks ocean flotsam, says all 33,000 shoes are still wearable. But there's a problem: Nike didn't tie the pairs together, so finding two that match could be difficult.

A beachcomber told Ebbesmeyer about the shoe spill after finding two shoes on Washington's Olympic Peninsula in January.Unfortunately for him, they were size ten and a half and eight and a half, and both were left-footed.

www.nike.com
February 26, 2003

Nike wins trademark battle

US sporting giant Nike has won a controversial court order in China on Wednesday to prevent Spanish company Cidesport from manufacturing and exporting clothing from the mainland using the Nike name.

The Spanish company, Cidesport, owns the right to use the Nike name in Spain, and had been planning to sell the goods made in China solely in its home country, according to evidence before the court. However, the court ruled that the simple manufacturing of the goods in China had breached Nike's China-registered trademark.

Chinese cities remain awash with fake foreign branded goods, including many bearing the trademark Nike swoosh, with the US company largely unable to do anything to stop it. Cidesport had confirmed its right to use the name Nike on apparel in Spain in 1999 after a lengthy court battle with the much larger US company.

www.nike.com
February 24, 2003

Florida probes Nike

Nike, the world's largest maker of athletic shoes, is under investigation by the Florida attorney general's office for allegedly fixing the retail price of shoes and clothing. Nike received a notice of a civil investigation in January ''in regards to issues of pricing of products at retail,'' said company spokesman Vada Manager. The shoemaker denies the allegations and is ''cooperating fully,'' Manager said.

Sports Authority and other major sporting-goods retailers are being asked by Florida's attorney general whether Nike withheld items because its so-called marquee shoes weren't being sold at prices the company considered suitable. JoAnn Carrin, spokeswoman for the attorney general's office, declined to confirm an investigation. The state antitrust statute prohibits discussion of an ongoing investigation or an issue that may lead to an investigation.

The probe comes amid an intensifying battle between Nike and Foot Locker, its biggest U.S. customer. Last year, Nike said it was halting shipments of such shoes as Air Jordans and Shox to Foot Locker. Nike is punishing Foot Locker for its decision to give more shelf space to shoes costing less than 120 USD.
www.nike.com

February 19, 2003

Last 'tribute' to Michael Jordan

Michael Jordan has announced his retirement from the game he loves most - basketball. Yet, his legacy lives on with Air Jordan XVIII, the newest addition to the 18-year-old Air Jordan basketball shoe franchise.

This high-performance shoe is the flagship product for the Jordan brand, and continues the Air Jordan tradition of releasing a new model every year that summarizes Michael Jordan's performance and style. The launch of the new shoe is set on February 8, during the NBA All-Star weekend. The price of the sneaker is set at 175 USD.

Nike said the Air Jordan XVIII is the latest in a long line of master works. No other shoe possesses a greater heritage or pedigree. The Air Jordan XVIII represents the culmination of those principles for the multidimensional talents of Michael Jordan and all those who aspire to greater heights.

Gentry Humphrey, footwear marketing director said: "We set out to make the Air Jordan XVIII a special shoe as it will be the one with which Michael ends his career. It's sleek, stylish and comfortable. In addition, we addressed and met all of the performance areas necessary to carry on the tradition of the Air Jordan franchise." Jordan himself underlined the importance of good shoes while you're sporting: "It's important that your feet are taken care of when playing the game of basketball."

www.nike.com

February 7, 2003

Nike equipment sponsor Mexican soccer

Nike, Inc. announced today it has signed an agreement with the Mexican Soccer Federation to be the official footwear, apparel and equipment sponsor for the Mexican National Soccer Teams. As part of this agreement, Nike will be the exclusive provider of apparel and equipment for the team and will also soccer footwear to those players selecting to wear Nike.

The Mexican team will sport two different uniforms: the home and the visitor uniform that will incorporate Nike's Cool Motion technology, a concept the company developed to help the body regulate its own temperature regardless of the weather conditions. Training clothes that use the DRI FIT technology will complement the uniforms. Initially, the Mexican National Team will sport temporary uniforms due to timing of the agreement with the official launch expected to take place during the first half of 2003.

"We are proud to announce our new partnership with the Mexican National Soccer Teams," said Don Remlinger, Global Brand Director of Nike Soccer. "As the exclusive product sponsor for the Mexico National Teams, we plan to provide the teams with our most innovative products to help them perform their best on the field. Nike has always been about inspiring athletes and creating the world's best performance footwear, apparel and equipment products and this association underscores our commitment to the future of the sport and the players in Mexico."

January 22, 2003
www.nike.com

Nike second quarter profit rises

Nike, Inc. said Thursday that profits in its most recent quarter rose 19 percent, topping forecasts, as the athletic gear producer saw strong sales overseas even as its domestic business slumped. Beaverton, Ore.-based Nike stated November-quarter profits rose to $152 million from $129 million in the year-ago quarter.

Second quarter revenues increased 8 percent to $2.5 billion. Analysts surveyed by First Call expected a profit of 56 cents per share during Nike's fiscal second quarter on sales of $2.4 billion.
U.S. revenues decreased 8 percent to $1 billion in the quarter, but quarterly revenues for Europe, the Middle East and Africa grew 35 percent to $781 million. In Asia, revenues grew 14 percent to $353 million.

"Our global portfolio continues to deliver strong results, as each of our international regions posted outstanding growth in revenue and profits," said Nike CEO Philip H. Knight in a statement. Nike said future orders for athletic footwear and apparel, scheduled for delivery between December and April 2003, rose to $3.9 billion, up 2.4 percent over the year-ago period.

December 21, 2002
www.nike.com

Nike concentrates on children apparel

In its campaign to fix its U.S. apparel business sports company Nike is fine-tuning its strategy on children's clothing. So far, the approach has paid off with a 6% revenue gain for the division in the fiscal 2003 first quarter ended August 31.
Mindy Grossman, Nike's vice-president of global apparel who was hired two years ago from Polo Jeans Co., is spearheading the effort. Working with a new apparel team, Grossman has rejuvenated men's apparel, and all signs point to the revitalization of Nike's women's apparel under the direction of Clare Hamill, analysts said.

Though Nike's children's apparel business is small, and may not yet be profitable, it could prove to be a key ingredient for the company. The company's domination of global athletic footwear leaves little room for much more rapid growth, so the apparel and accessory markets are considered the Beaverton, Oregon, company's hottest growth prospects.
On the drawing board for spring is a line called Nike Technetics for children, using the company's performance fabrics like Dri-FIT. This clothing is designed for children to wear all day - from the classroom to the playing field after school, said Doug Reed, general manager for Nike's U.S. children's business since May 2000.
Nike will also reposition its line for girls ages 10 to 12 starting in the spring, and will begin using its Dri-FIT fabric and more fashion styling in the line.

Nike's U.S. apparel sales have revived in the last year. In the first quarter of its fiscal 2003, U.S. apparel sales totaled $328.7 million, a 10% increase over the fourth quarter of fiscal 2002 and a 5.8% increase over the first quarter of fiscal 2002.
In the children's market, Nike meets new competitors, such as OshKosh and Buster Brown. But analysts say Nike has a distinct advantage - because it "sells a lifestyle," not just clothing.

Nike has been selling children's shoes for years. The company started selling T- shirts for boys sizes eight to 12 in the mid-1980s and launched a range of clothing for girls in the mid-1990s.

October 29, 2002
www.nike.com

Nike launches line with organic cotton

Nike is launching a new Women’s Active Line that is made with certified organic cotton. The six-piece collection is to debut this fall in the United States. Director Heidi McCloskey said: “In our commitment to being a responsible global citizen, Nike continues to look for ways to integrate sustainability into how we work. (…) We hope that it will signal to our retailers and consumers that we are sincere in our commitment to organic cotton”.

Nike announced that organic cotton looks, feels and wears just like conventional cotton, but is produced using more sustainable farming methods. Sourcing organic is in fact, in many ways it's harder, slower and more costly, but the company claims to be committed to it anyway. McCloskey: “It's the right thing to do.” Nike plans to expand Nike Organics, which is currently available in the U.S. only, to include men's offerings in 2003.

The first Organic collection features two fabrications in five colours. The organic knit collection, which includes a hoody, short-sleeved top, sleeveless v-neck tee and tank. This blends five per cent Lycra with 95% certified organic cotton. The second is the woven collection, which includes a short and Capri pants, and is entirely made from certified organic cotton.

www.nikebiz.com/sustainability

October 8, 2002

New Nike campaign celebrates women

'Find yourself' is the theme for a European add-campaign developed for Nike's new women's sportswear collection. The campaign was made by the Dutch add-agency Wieden & Kennedy. Various women are portrayed in the campaign. They are all working-out in their own way and they all visualize a certain sports-type: the Competitor, the Diva, the Yoganista, the Slacker, the Action Hero and the Gymaholic.
Several female athletes from all over the world participated in the development of the campaign, which is about to run on TV, in print and on billboards as of this week.

www.nike.com
October 3, 2002

Nike posted rise in Q1 earnings

Sportswear giant Nike Inc posted a six per cent rise in first quarter earnings due to solid international sales that compensated a weaker US footwear market.

The company that is based in Oregon announced that before the effect of an accounting change for the 13 weeks up to August 31, income was $217.2 million, compared with $204.2 million, in 2001. Nike lost $48.9million. Revenue climbed seven per cent to $2.8 billion from $2.6 billion last year.

The company added worldwide futures orders for athletic footwear and apparel were up 2.5 per cent in the quarter at $3.3 billion. By region, future orders for the US was down three per cent, Europe up nine per cent, Asia Pacific up 18% and the Americas down 13%.

Revenues in the European region (which includes Africa) jumped 15 per cent to $869 million from $753 million with footwear revenues up 16 per cent to $493 million, apparel up 14 per cent to $311 million and equipment up 20 per cent to $66 million.

Chairman and CEO, Philip Knight, said in a statement: "The results from the quarter indicate the strength of the Nike brand has never been more robust on a global level."

Nike said US revenues increased two per cent to $1.28 billion with footwear revenues flat at $865 million and apparel revenues up six per cent to $329 million, while equipment revenues fell one per cent to $89 million.

Revenues in the Asia Pacific region surged 24 per cent to $308 million from $249 million, with footwear revenues up 11 per cent to $181 million, apparel revenues up 54 per cent to $99 million and equipment up 27 per cent to $29 million.

09-18-02

Quiksilver begins shoe collection

US the sportswear and board riding company Quiksilver, will launch a shoe collection for the summer 2003 season. The new collection, contains over 40 styles for men and women was shown at Munich-based sporting goods fair Ispo for the first time. The collection can also be seen at the German shoe exhibition GDS from 19 to 22 September.

The company that is based in Huntington Beach plans to reach sales of 20 million euro in the medium term, and sales in Europe to account for 20 to 25 per cent of total turnover. Quiksilver posted a turnover of 631.5 million euro and the current year forecasts total sales of $ 690 million. In Europe, where the company operates through its subsidiary in France, sales were 250 million euro in 2001 and increased by 29.4 per cent in the first half of 2002.

09-18-02
www.nike.com