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 NIKE, Inc. Reports Fiscal 2017 Fourth Quarter and Full Year Results
   Thursday, June 29, 2017 4:15:01 PM ET

--Fourth quarter diluted earnings per share increased 22 percent to $0.60

--Fiscal 2017 revenues up 6 percent to $34.4 billion; 8 percent growth on a currency-neutral basis*

--Fiscal 2017 diluted earnings per share increased 16 percent to $2.51

--Inventories up 4 percent as of May 31, 2017

NIKE, Inc. (NKE ) today reported fiscal 2017 financial results for its fourth quarter and full year ended May 31, 2017. International geographies and the Direct-to-Consumer (DTC) businesses globally led strong revenue growth in the fourth quarter and full year.

Diluted earnings per share for the quarter rose 22 percent to $0.60 driven by global revenue growth, lower selling and administrative expense, a lower tax rate and a lower average share count which were slightly offset by lower gross margin.

Fiscal 2017 diluted earnings per share rose 16 percent to $2.51, reflecting revenue growth of 6 percent, a lower tax rate and a lower average share count which was slightly offset by lower gross margin.

"NIKE continues to create both near-term wins in today’s dynamic environment and a lasting foundation for future growth," said Mark Parker, Chairman, President and CEO, NIKE, Inc. "Through our Consumer Direct Offense, we’re putting even more firepower behind our greatest opportunities in Fiscal 2018. It will be a big year for NIKE innovation and we’ll bring those stories to life through deeper consumer connections in our key cities around the world."**

Fourth Quarter Income Statement Review

-- Revenues for NIKE, Inc. rose 5 percent to $8.7 billion, up 7 percent on a currency-neutral basis. -- Revenues for the NIKE Brand were $8.1 billion, up 7 percent on a currency-neutral basis driven by double-digit growth in Western Europe, Greater China, and the Emerging Markets, and strong growth in Sportswear and Running.

-- Revenues for Converse were $554 million, up 10 percent on a currency-neutral basis, primarily driven by the market transition in Italy and growth in DTC.

-- Gross margin declined 180 basis points to 44.1 percent as higher average selling prices were more than offset by unfavorable changes in foreign currency exchange rates and higher product costs.

-- Selling and administrative expense decreased 4 percent to $2.7 billion. Demand creation expense was $789 million, down 10 percent, as fiscal 2017 spend was weighted towards the beginning of the year due to significant investments around the Olympics and the European Football Championship. Operating overhead expense decreased 1 percent to $1.9 billion, as continued investments in DTC were offset by administrative cost efficiencies.

-- Other income, net was $28 million comprised primarily of net foreign currency exchange hedge gains.

-- The effective tax rate was 13.7 percent, compared to 21.2 percent for the same period last year, primarily due to an increase in the proportion of earnings from operations outside of the United States, which are generally subject to a lower tax rate.

-- Net income increased 19 percent to $1.0 billion primarily due to global revenue growth, lower selling and administrative expense and a lower tax rate which were slightly offset by a gross margin decline, while diluted earnings per share increased 22 percent to $0.60 reflecting a nearly 3 percent decline in the weighted average diluted common shares outstanding.

Fiscal 2017 Income Statement Review

-- Revenues for NIKE, Inc. rose 6 percent to $34.4 billion, up 8 percent on a currency-neutral basis.

-- Also, on a currency-neutral basis: -- Revenues for the NIKE Brand were $32.2 billion, up 8 percent.

-- NIKE Brand sales to wholesale customers increased 5 percent while DTC revenues grew to $9.1 billion, up 18 percent, driven by a 30 percent increase in digital commerce sales, the addition of new stores and 7 percent growth in comparable store sales. As of May 31, 2017, the NIKE Brand had 985 DTC stores in operation as compared to 919 a year ago.

-- NIKE Brand revenue growth was driven by growth in every geography as well as key categories including Sportswear, Running and the Jordan Brand.

-- Revenues for Converse were $2.0 billion, up 6 percent, driven by growth in the United States and Europe due to the market transition in Italy.

-- Gross margin declined 160 basis points to 44.6 percent as higher average selling prices were more than offset by the negative impact of changes in foreign currency exchange rates and higher product costs.

-- Selling and administrative expense increased 1 percent to $10.6 billion. Demand creation expense was $3.3 billion, up 2 percent, primarily due to higher sports marketing costs and significant investments around the Olympics and the European Football Championship in the first half of the fiscal year. Operating overhead expense remained flat at $7.2 billion, as continued investments in DTC were offset by administrative cost efficiencies and lower variable compensation.

-- Other income, net was $196 million comprised primarily of net foreign currency exchange hedge gains.

-- The effective tax rate was 13.2 percent, compared to 18.7 percent for the same period last year primarily due to a one-time benefit in the first quarter of the fiscal year related to the resolution with the U.S. Internal Revenue Service of a foreign tax credit matter, and a decrease in foreign earnings taxed in the U.S.

-- Net income increased 13 percent to $4.2 billion reflecting strong global revenue growth, selling and administrative expense leverage and a lower tax rate which were slightly offset by a decline in gross margin. Diluted earnings per share increased 16 percent to $2.51, reflecting growth in net income and the additional benefit of a decline in the weighted average diluted common shares outstanding.

May 31, 2017 Balance Sheet Review

-- Inventories for NIKE, Inc. were $5.1 billion, up 4 percent from May 31, 2016, as a 3 percent decrease in NIKE Brand wholesale unit inventories was more than offset by increases in average product cost per unit and growth in our DTC businesses.

-- Cash and short-term investments were $6.2 billion, $722 million higher than last year as growth in net income, proceeds from the issuance of debt in the second quarter of fiscal 2017 and proceeds from employee exercises of stock options were partially offset by share repurchases, dividends, and investments in infrastructure and working capital.

Share Repurchases

During the fourth quarter, NIKE, Inc. repurchased a total of 14.9 million shares for approximately $820 million as part of the four-year, $12 billion program approved by the Board of Directors in November 2015. As of May 31, 2017, a total of 79.8 million shares had been repurchased under this program for approximately $4.4 billion.

Conference Call

NIKE, Inc. management will host a conference call beginning at approximately 2:00 p.m. PT on June 29, 2017, to review fiscal fourth quarter and full year results. The conference call will be broadcast live over the Internet and can be accessed at http://investors.NIKE.com . For those unable to listen to the live broadcast, an archived version will be available at the same location through 9:00 p.m. PT, July 6, 2017.

About NIKE, Inc.

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, Inc. subsidiary brands include Converse, which designs, markets and distributes athletic lifestyle footwear, apparel and accessories; and Hurley, which designs, markets and distributes surf and youth lifestyle footwear, apparel and accessories. For more information, NIKE, Inc.’s earnings releases and other financial information are available on the Internet at http://investors.NIKE.com and individuals can follow @NIKE.

      
*                                            See additional information in the accompanying Divisional Revenues
                                             table regarding this non-GAAP financial measure.
                                              
**                                           The marked paragraph contains 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 Securities and
                                             Exchange Commission (SEC), including Forms 8-K, 10-Q, and 10-K.
                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                     NIKE, Inc.
                                                                                                                                                                                                                            CONSOLIDATED STATEMENTS OF INCOME
                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                       THREE MONTHS ENDED                                                                                             %                                                                                                                TWELVE MONTHS ENDED                                                                                            %
(Dollars in millions, except per share data)      5/31/2017       5/31/2016                   Change                      5/31/2017       5/31/2016                   Change
-------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- ------------------------------------
Revenues                                                                             $     8,677                                                              $     8,244                                                        5 %                                                                                 $    34,350                                                              $    32,376                                                        6 %
Cost of sales                                        4,854           4,458                  9 %                             19,038          17,405                  9 %
-------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------- --------------------
Gross profit                                                                               3,823                                                                    3,786                                                        1 %                                                                                      15,312                                                                   14,971                                                        2 %
   Gross margin                                                                             44.1 %                                                                   45.9 %                                                                                                                                                 44.6 %                                                                   46.2 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Demand creation expense                                                                      789                                                                      873                                                      -10 %                                                                                       3,341                                                                    3,278                                                        2 %
Operating overhead expense                           1,876           1,893                 -1 %                              7,222           7,191                  0 %
-------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------- --------------------
Total selling and administrative expense                                                   2,665                                                                    2,766                                                       -4 %                                                                                      10,563                                                                   10,469                                                        1 %
   % of revenues                                                                            30.7 %                                                                   33.6 %                                                                                                                                                 30.8 %                                                                   32.3 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Interest expense (income), net                                                                18                                                                        5                                           --                                                                                            59                                                                       19                                           --
Other (income) expense, net                            (28 )                              (58 )                      --              (196 )                             (140 )                      --  
-------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------- --------------------
Income before income taxes                                                                 1,168                                                                    1,073                                                        9 %                                                                                       4,886                                                                    4,623                                                        6 %
Income tax expense                                     160             227                -30 %                                646             863                -25 %
-------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------- --------------------
   Effective tax rate                                                                       13.7 %                                                                   21.2 %                                                                                                                                                 13.2 %                                                                   18.7 %
                                                                                                                                                                                              
-------------------------------------------- -------------------- ------------------------------------------------------------------------ ------------------------------------------------------------------------ -------------------------------------------------------- -------------------- ------------------------------------------------------------------------ ------------------------------------------------------------------------ ------------------------------------
NET INCOME                                                        $     1,008                        $       846                 19 %                                           $     4,240                        $     3,760                 13 %
-------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Earnings per common share:
   Basic                                                                             $      0.61                                                              $      0.50                                                       22 %                                                                                 $      2.56                                                              $      2.21                                                       16 %
   Diluted                                                                           $      0.60                                                              $      0.49                                                       22 %                                                                                 $      2.51                                                              $      2.16                                                       16 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Weighted average common shares outstanding:
   Basic                                                                                 1,646.9                                                                  1,682.4                                                                                                                                                1,657.8                                                                  1,697.9
   Diluted                                                                               1,678.6                                                                  1,723.1                                                                                                                                                1,692.0                                                                  1,742.5
                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Dividends declared per common share                               $      0.18                        $      0.16                                             $      0.70                        $      0.62      
-------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- ------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                     
                                                                                                                                
                                                                                                                     NIKE, Inc.
                                                                                                             CONSOLIDATED BALANCE SHEETS
                                                                                                                                                                                                                                 
                                                                                   May 31,                                                                       May 31,                                                         
(Dollars in millions)                                            2017                                    2016                          % Change
---------------------------------------------- -------------------- ----------------------------------  -------------------- -------------------- ----------------------------------  -------------------- -------------------- --------------------
ASSETS
Current assets:
   Cash and equivalents                                                                $          3,808                                                              $          3,138                                                            21%
   Short-term investments                                                                         2,371                                                                         2,319                                                             2%
   Accounts receivable, net                                                                       3,677                                                                         3,241                                                            13%
   Inventories                                                                                    5,055                                                                         4,838                                                             4%
   Prepaid expenses and other current assets                1,150                1,489                     -23%
---------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------
Total current assets                                                                             16,061                                                                        15,025                                                             7%
   Property, plant and equipment, net                                                             3,989                                                                         3,520                                                            13%
   Identifiable intangible assets, net                                                              283                                                                           281                                                             1%
   Goodwill                                                                                         139                                                                           131                                                             6%
   Deferred income taxes and other assets                   2,787                2,422                      15%
---------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------
TOTAL ASSETS                                                        $         23,259                        $         21,379                       9%
---------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities:
   Current portion of long-term debt                                                   $              6                                                              $             44                                                           -86%
   Notes payable                                                                                    325                                                                             1                                                 --
   Accounts payable                                                                               2,048                                                                         2,191                                                            -7%
   Accrued liabilities                                                                            3,011                                                                         3,037                                                            -1%
   Income taxes payable                                        84                   85                      -1%
---------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------
Total current liabilities                                                                         5,474                                                                         5,358                                                             2%
   Long-term debt                                                                                 3,471                                                                         1,993                                                            74%
   Deferred income taxes and other liabilities                                                    1,907                                                                         1,770                                                             8%
   Redeemable preferred stock                                                            --                                                                --                                                 --
   Shareholders’ equity                                    12,407               12,258                       1%
---------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY                          $         23,259                        $         21,379                       9%
---------------------------------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                     NIKE, Inc.
                                                                                                                                                                                                                                     DIVISIONAL REVENUES
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                                      % Change                                                                                                                                                                                                                                                            % Change
                                                                                                                                                                                                                                                      Excluding                                                                                                                                                                                                                                                           Excluding
                                                                                             THREE MONTHS ENDED                                                                                  %                                                    Currency                                                                                                   TWELVE MONTHS ENDED                                                                                 %                                                    Currency
(Dollars in millions)             5/31/2017       5/31/2016                 Change                              Changes(1)                    5/31/2017     5/31/2016                   Change                              Changes(1)
---------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- ----------------------------------  -------------------- ----------------------------------  -------------------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- ----------------------------------  -------------------- ----------------------------------
North America
   Footwear                                                          $     2,457                                                              $     2,367                                   4 %                                                      4 %                                                                                 $     9,684                                         $     9,299                                                        4 %                                                      4 %
   Apparel                                                                 1,142                                                                    1,163                                  -2 %                                                     -2 %                                                                                       4,886                                               4,746                                                        3 %                                                      3 %
   Equipment                           154             205              -25 %                                 -25 %                                646           719                -10 %                                 -10 %
---------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
      Total                                                                3,753                                                                    3,735                                   0 %                                                      1 %                                                                                      15,216                                              14,764                                                        3 %                                                      3 %
Western Europe
   Footwear                                                                1,066                                                                    1,027                                   4 %                                                     11 %                                                                                       4,068                                               3,985                                                        2 %                                                      7 %
   Apparel                                                                   438                                                                      411                                   7 %                                                     15 %                                                                                       1,868                                               1,628                                                       15 %                                                     21 %
   Equipment                            60              64               -6 %                                   1 %                                275           271                  1 %                                   7 %
---------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
      Total                                                                1,564                                                                    1,502                                   4 %                                                     12 %                                                                                       6,211                                               5,884                                                        6 %                                                     11 %
Central & Eastern Europe
   Footwear                                                                  233                                                                      224                                   4 %                                                      9 %                                                                                         927                                                 882                                                        5 %                                                      9 %
   Apparel                                                                   103                                                                      102                                   1 %                                                      2 %                                                                                         471                                                 463                                                        2 %                                                      4 %
   Equipment                            21              19               11 %                                  11 %                                 89            86                  3 %                                   6 %
---------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
      Total                                                                  357                                                                      345                                   3 %                                                      6 %                                                                                       1,487                                               1,431                                                        4 %                                                      7 %
Greater China
   Footwear                                                                  765                                                                      681                                  12 %                                                     18 %                                                                                       2,920                                               2,599                                                       12 %                                                     18 %
   Apparel                                                                   293                                                                      268                                   9 %                                                     14 %                                                                                       1,188                                               1,055                                                       13 %                                                     18 %
   Equipment                            29              30               -3 %                                  -3 %                                129           131                 -2 %                                   3 %
---------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
      Total                                                                1,087                                                                      979                                  11 %                                                     16 %                                                                                       4,237                                               3,785                                                       12 %                                                     17 %
Japan
   Footwear                                                                  196                                                                      187                                   5 %                                                      4 %                                                                                         666                                                 570                                                       17 %                                                      7 %
   Apparel                                                                    78                                                                       70                                  11 %                                                     11 %                                                                                         275                                                 228                                                       21 %                                                     10 %
   Equipment                            21              23               -9 %                                 -10 %                                 73            71                  3 %                                  -6 %
---------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
     Total                                                                   295                                                                      280                                   5 %                                                      5 %                                                                                       1,014                                                 869                                                       17 %                                                      7 %
Emerging Markets
   Footwear                                                                  756                                                                      596                                  27 %                                                     24 %                                                                                       2,816                                               2,536                                                       11 %                                                     17 %
   Apparel                                                                   247                                                                      226                                   9 %                                                      6 %                                                                                         966                                                 947                                                        2 %                                                      8 %
   Equipment                            50              50                0 %                                  -3 %                                213           218                 -2 %                                   2 %
---------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
      Total                                                                1,053                                                                      872                                  21 %                                                     18 %                                                                                       3,995                                               3,701                                                        8 %                                                     14 %
Global Brand Divisions(2)               18              12               50 %                                  68 %                                 73            73                  0 %                                   2 %
---------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
TOTAL NIKE BRAND                     8,127           7,725                5 %                                   7 %                             32,233        30,507                  6 %                                   8 %
---------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
Converse                                                                     554                                                                      513                                   8 %                                                     10 %                                                                                       2,042                                               1,955                                                        4 %                                                      6 %
Corporate(3)                            (4 )                                6   --     --                75           (86 )                      --     --  
---------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
TOTAL NIKE, INC. REVENUES                         $     8,677                        $     8,244                5 %                                   7 %                                           $    34,350                      $    32,376                  6 %                                   8 %
---------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
TOTAL NIKE BRAND
   Footwear                                                          $     5,473                                                              $     5,082                                   8 %                                                     10 %                                                                                 $    21,081                                         $    19,871                                                        6 %                                                      8 %
   Apparel                                                                 2,301                                                                    2,240                                   3 %                                                      4 %                                                                                       9,654                                               9,067                                                        6 %                                                      9 %
   Equipment                                                                 335                                                                      391                                 -14 %                                                    -14 %                                                                                       1,425                                               1,496                                                       -5 %                                                     -3 %
   Global Brand Divisions(2)            18              12               50 %                                  68 %                                 73            73                  0 %                                   2 %
---------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- --------- -------------------- -------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- --------- -------------------- -------------------- -------------- -------------------- -------------------- -------------- --------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
(1) Fiscal 2017 results have been restated using fiscal
2016 exchange rates for the comparative period to enhance the
visibility of the underlying business trends excluding the impact
of translation arising from foreign currency exchange rate
fluctuations, which is considered a non-GAAP financial measure.
 
(2) Global Brand Divisions revenues are primarily
attributable to NIKE Brand licensing businesses that are not part
of a geographic operating segment.
 
(3) Corporate revenues primarily consist of foreign
currency hedge gains and losses related to revenues generated by
entities within the NIKE Brand geographic operating segments and
Converse but managed through our central foreign exchange risk
management program.
 
                                                                                                                                                                  
                                                                                                                                                         NIKE, Inc.
                                                                                                                                           SUPPLEMENTAL NIKE BRAND REVENUE DETAILS
                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                              % Change
                                                                                                                                                                                                                                                                                                              Excluding
                                                                                                                                     TWELVE MONTHS ENDED                                                                                                                                   Currency
(Dollars in millions)                                                               5/31/2017                     5/31/2016(1)                  % Change                Changes(2)
----------------------------------------------------------------------- -------------------- --------------------------  -------------------- -------------------- --------------------------  -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
NIKE Brand Revenues by:
   Sales to Wholesale Customers                                                                                 $ 23,078                                                              $ 22,577                                                             2%                                                             5%
   Sales Direct to Consumer                                                                                        9,082                                                                 7,857                                                            16%                                                            18%
   Global Brand Divisions(3)                                                    73           73                       0%                       2%
----------------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
TOTAL NIKE BRAND REVENUES                                                                    $ 32,233                        $ 30,507                       6%                       8%
----------------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                         
NIKE Brand Revenues on a Wholesale Equivalent Basis:(4)
   Sales to Wholesale Customers                                                                                 $ 23,078                                                              $ 22,577                                                             2%                                                             5%
   Sales from our Wholesale Operations to Direct to Consumer Operations      5,616        4,672                      20%                      22%
----------------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES                                               $ 28,694                        $ 27,249                       5%                       8%
----------------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                         
NIKE Brand Wholesale Equivalent Revenues by:(4)
   Men’s                                                                                                        $ 16,041                                                              $ 15,410                                                             4%                                                             6%
   Women’s                                                                              6,644                                                                 6,296                                                             6%                                                             8%
   Young Athletes’                                                                                                 4,838                                                                 4,560                                                             6%                                                             8%
   Others(5)                                                                 1,171          983                      19%                      21%
----------------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES                                               $ 28,694                        $ 27,249                       5%                       8%
----------------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                         
NIKE Brand Wholesale Equivalent Revenues by:(4)
   Running                                                                                                      $  5,278                                                              $  5,017                                                             5%                                                             8%
   NIKE Basketball                                                                                                 1,292                                                                 1,378                                                            -6%                                                            -5%
   Jordan Brand                                                                                                    3,099                                                                 2,753                                                            13%                                                            13%
   Football (Soccer)                                                                                               1,987                                                                 2,143                                                            -7%                                                            -4%
   Men’s Training                                                                       2,617                                                                 2,611                                                             0%                                                             1%
   Women’s Training                                                                     1,265                                                                 1,344                                                            -6%                                                            -4%
   Action Sports                                                                                                     596                                                                   655                                                            -9%                                                            -7%
   Sportswear                                                                                                      8,587                                                                 7,513                                                            14%                                                            17%
   Golf                                                                                                              579                                                                   706                                                           -18%                                                           -18%
   Others(6)                                                                 3,394        3,129                       8%                      11%
----------------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
TOTAL NIKE BRAND WHOLESALE EQUIVALENT REVENUES                                               $ 28,694                        $ 27,249                       5%                       8%
----------------------------------------------------------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- ------ -------------------- -------------------- -------------------- -------------------- -------------------- --------------------
                                                                                                                                                                                                                                                                                                         
(1) Certain prior year amounts have been reclassified to
conform to fiscal 2017 presentation. These changes had no impact
on previously reported results of operations or shareholders’
equity.
 
(2) Fiscal 2017 results have been restated using fiscal
2016 exchange rates for the comparative period to enhance the
visibility of the underlying business trends excluding the impact
of translation arising from foreign currency exchange rate
fluctuations, which is considered a non-GAAP financial measure.
 
(3) Global Brand Divisions revenues are primarily
attributable to NIKE Brand licensing businesses that are not part
of a geographic operating segment.
 
(4) References to NIKE Brand wholesale equivalent
revenues, which are considered non-GAAP financial measures, are
intended to provide context as to the total size of our NIKE Brand
market footprint if we had no Direct to Consumer operations. NIKE
Brand wholesale equivalent revenues consist of 1) sales to
external wholesale customers and 2) internal sales from our
wholesale operations to our Direct to Consumer operations which
are charged at prices that are comparable to prices charged to
external wholesale customers.
 
(5) Others include all unisex products, equipment and
other products not allocated to Men’s, Women’s and Young
Athletes’, as well as certain adjustments that are not allocated
to products designated by gender or age.
 
(6) Others include all other categories and certain
adjustments that are not allocated at the category level.
 
                                                                                                                                                                                                                                                                                                                             
                                                                                                                                                                                                                                     NIKE, Inc.
                                                                                                                                                                                                                                     EARNINGS BEFORE INTEREST AND TAXES(1)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
                                                                                                                                         THREE MONTHS ENDED                                                                                                                            %                                                                                                                           TWELVE MONTHS ENDED                                                                                                                           %
(Dollars in millions)                                    5/31/2017         5/31/2016                     Change                      5/31/2017         5/31/2016                     Change
--------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- ------------------------------------
North America                                                                               $       979                                                                                   $       936                                                                             5 %                                                                                 $     3,875                                                                                   $     3,763                                                                             3 %
Western Europe                                                                                      285                                                                                           308                                                                            -7 %                                                                                       1,203                                                                                         1,434                                                                           -16 %
Central & Eastern Europe                                                                             48                                                                                            46                                                                             4 %                                                                                         244                                                                                           289                                                                           -16 %
Greater China                                                                                       380                                                                                           357                                                                             6 %                                                                                       1,507                                                                                         1,372                                                                            10 %
Japan                                                                                                77                                                                                            55                                                                            40 %                                                                                         224                                                                                           174                                                                            29 %
Emerging Markets                                                                                    215                                                                                           191                                                                            13 %                                                                                         816                                                                                           892                                                                            -9 %
Global Brand Divisions(2)                                    (689 )                               (722 )                                     5 %                             (2,677 )                             (2,596 )                                    -3 %
--------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------- --------------------
TOTAL NIKE BRAND                                            1,295             1,171                   11 %                              5,192             5,328                   -3 %
--------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------- --------------------
Converse                                                                                            137                                                                                           128                                                                             7 %                                                                                         477                                                                                           487                                                                            -2 %
Corporate(3)                                                 (246 )                               (221 )                                   -11 %                               (724 )                             (1,173 )                                    38 %
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TOTAL NIKE, INC. EARNINGS BEFORE INTEREST AND TAXES         1,186             1,078                   10 %                              4,945             4,642                    7 %
--------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------- --------------------
Interest expense (income), net                                 18                 5       --                59                19       --  
--------------------------------------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------------- --------- -------------------- -------------------- -------------------- -------------- --------------------
TOTAL NIKE, INC. INCOME BEFORE INCOME TAXES                              $     1,168                          $     1,073                    9 %                                           $     4,886                          $     4,623                    6 %
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(1) The Company evaluates performance of individual
operating segments based on earnings before interest and taxes
(commonly referred to as "EBIT"), which represents net income before
interest expense (income), net and income tax expense.
 
(2) Global Brand Divisions primarily represent demand
creation, operating overhead and product creation and design
expenses that are centrally managed for the NIKE Brand. Revenues
for Global Brand Divisions are primarily attributable to NIKE
Brand licensing businesses that are not part of a geographic
operating segment.
 
(3) Corporate consists largely of unallocated general and
administrative expenses, including expenses associated with
centrally managed departments; depreciation and amortization
related to the Company’s corporate headquarters; unallocated
insurance, benefit and compensation programs, including
stock-based compensation; and certain foreign currency gains and
losses, including certain hedge gains and losses.

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20170629006278r1&sid=cmtx6&distro=nx&

View source version on businesswire.com: http://www.businesswire.com/news/home/20170629006278/en/

SOURCE: NIKE, Inc.

NIKE, Inc. 
Investor Contact: 
Nitesh Sharan, 503-532-2828 
or 
Media Contact: 
Kellie Leonard, 503-671-6171


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