"Sweatshop scandals have been the subject of more than 1500 news articles and opinion columns, and its stock has fallen heavily since 1995" (SOURCE: ("No Logo." Journal of Marketing; New York; Jul 2000; John Fahy [University of Limerick, Ireland]; Volume: 64 (3): 115). This is a review of No Logo by Naomi Klein (London: Harper Collins Publishers, 2000).
The purpose of this site is to investigate the relationship between stories about Athletic/Campus Apparel and their stock value. In finance these are called "event studies," but in organization theory it is storying and restorying by a storytelling organization. Fama, Fisher, Jensen and Roll did the original event study stock market modeling. They looked at residual patterns (looking at standard deviations in error terms) over time and assumed that the market enacts efficient reaction to relevant news stories so as to reduce investor risk. Enjoy.STOCK Quotes
This is relation of NIKE and SP500 index
TABLE ONE: GLOBAL FOOTWEAR MARKET SHARE (1999)
|COMPANY||1999 MARKET SHARE||1999 REVENUES (millions)||1998 MARKET SHARE||1997 MARKET SHARE||1996 Revenue (millions)|
|3. ADIDAS||6%||Revenues 5.944***||9.3%||$184|
|6. NEW BALANCE||$630 Sales||3.0%|
Source: 1999 Company
Business Reporter *1998 figure; Washington Post, Sunday March 29, 1998; Wallace, 1997; ** Citing Morgan & Stanley, 2000; *** CCC Adidas Profile; Reebok figures
TABLE TWO: GLOBAL SOCCER MARKET SHARE 1998
Source: Portland Business Journal July 17, 1998 Gina Binole
TABLE THREE: US FOOTWEAR MARKET SHARE adapted from Business Wire April 7, 2000; 2, 3)
|1. Nike||39.2%||1. Nike||48.9%||55%****||1. Nike 43.6%|
|2. Adidas||15.1%||2. Adidas||16.9%||Adidas doubles to 12%||2. Reebok 15.9%|
|3. Reebok||10.9%**||3. Reebok||10.9%*||3. Fila 7.2%|
|4. New Balance||9.4%||4. New Balance||3.7%||4. Adidas 5.2%|
|5. K-Swiss||3.6%||5. K-Swiss||3.1%|
|6. Timberland||2.9%||6. Timberland||2.1%|
|7. Asics||2.1%||7. Asics||1.5%|
|8. Saucony||1.4%||8. Lugz||1.4%|
|9. Skechers||1.4%||9. And 1||0.9%|
|10. And 1||1.2%||10. Saucony||0.9%|
Notes: U.S. market accounts for 40% of world-wide sportswear and sporting-goods sales (WSJ, Oct 11, 2000); *Down from 14% in 1998 (AP 9/9/1999); ** $2.899 billion sales (Reuters Feb 1, 2001); *** (Emporium 10/9/1997); **** Estimate for 1999 Report.
43.6 percent market share versus 15.9 percent for
Reebok, 7.4 percent for Fila and 5.2 percent for Adidas.
Table Four: Relative Market Shares (source Landrum & Boje, 2001)
Using the most current point-of-sale data compiled from the nation's leading sporting goods retailers, department stores and specialty stores, SportsTrend.Info each week tracks exactly what products consumers are purchasing, as well as where and when.
The top-selling footwear manufacturers, first quarter of 2000 compared with the first quarter of 1999 based on market share dollars.
Main Points and assumptions about the relationship between Storytelling and Stock Prices:
NIKE - Where Shoes are
(Source 1999- Annual Report) (press here) - Virtually all of our footwear is produced outside of the United States. In fiscal 1999, contract suppliers in the following countries manufactured the following percentages of total NIKE brand footwear:
People's Republic of China..................................... 40
The Philippines...................................................... 2
South Korea.......................................................... 1
We [Nike] also have manufacturing agreements with independent factories in Argentina, Brazil, and Mexico, to manufacture footwear for sale within those countries. Our largest single supplier accounted for approximately 8 percent of total fiscal 1999 footwear production.
NIKE - IN THE STOCK NEWS
1962 - Phil Knight's research paper at Stanford asserts that low-priced, high-tech, well-merchandised exports from Japan could replace Germany’s domination of the U.S. athletic shoe industry.
December, 1963, Phil Knight received his first shipment of "tiger" shoes from Japan. He began to sell them at track meets from the back of his truck.
1968 - Phil Knight founds Tiger Shoes -NIKE, Inc. was incorporated in 1968 under the laws of the state of Oregon. Prior to 1968, Mr. Knight was a certified public accountant with Price Waterhouse and Coopers & Lybrand and was an Assistant Professor of Business Administration at Portland State University.
1969: Knight resigns his position as Assistant Professor of Business Administration at Portland State University to devote himself full time to the company.
1971 - In 1971, when the company was called Blue Ribbon Sports (press here) -The SWOOSH logo is a graphic design created by Caroline Davidson in 1971. It represents the wing of the Greek goddess Nike. Caroline Davidson was a student at Portland State University interested in advertising. She met Phil Knight while he was teaching accounting classes and she started doing some freelance work for his company. Phil Knight asked Caroline to design a logo that could be placed on the side of a shoe. She handed him the SWOOSH, he handed her $35.
1980 -NIKE stock goes public, offering 2 million shares of common stock to the public.Revenues exceed $269 million for the year.
1985 - Chicago Bulls basketball rookie Michael Jordan endorses NIKE
line of AIR JORDAN
court shoes and specialized apparel.
1987 - Nike's Revolution ads commodify dissent: 1987 (press here).
1988 - "Just Do It" Campaign designed by Dan Wieden is introduced.
1990 - Spring -(press here) Ethics and Sneakers by Louis Corrigan (June 18th, 1997) "It's murder, gentlemen. No rhyme, nor reason, just murder. For sneakers. For jackets. Get it Spike? Murder." --Phil Mushnick, columnist for the New York Post, 1990 In the spring of 1990, Nike's latest edition of the wildly popular Air Jordans and Reebok's new "high-tech" Pump basketball shoes hit the stores with a then unprecedented retail price of $175. Around the same time, the media went wild over a handful of gory inner-city tragedies: kids shot down in cold blood by other kids who wanted their fancy sneakers or flashy team jackets and would literally kill to get them. What blame should be meted out to a company (like Nike), a star pitchman (like Michael Jordan), and a hip director turned ad maestro (like Spike Lee) who could create such an iconic aura around a pair of shoes -- mere rubber and leather, after all -- that customers would either pay more for them than they could afford or maybe just blow someone away to enjoy a piece of such transcendent cool?
1996 - Nike increased its footwear production in 1996 by an amount that exceeded Adidas' total production.
May. 28, 1996. Knight Ridder, Tribune. (press here) Our purchases keep children in chains By Joel D. Joseph/Knight-Ridder/Tribune Tuesday, May 28, 1996- Nike is not only allegedly exploiting women workers in Vietnam, Indonesia and China. Nike products has been found to be made by child labor in Pakistan.
July 9, 1996 - AP News - (press here) Nike Profit Rises 38 Percent in Latest Quarter The sneaker industry leader said Tuesday it earned $156.4 million, or $1.06 per share, in the three months ended May 31 compared with $113.4 million, or 78 cents a share, a year earlier. That was above the consensus estimate of 98 cents per share held by 17 analysts surveyed before the earnings report by Zacks Investment Research.
July 23, 1996. AP-News. Jesse Jackson returns from far east criticizing factory conditions.
Sep. 17, 1996. AP-News. Nike rejected a plan that would required independent monitoring of its factories.
Sep. 19, 1996. AP-News. Investors Take a Stand Against Sweatshops.
1996 - Life Magazine (June) pp. 38-48.Schanberg, Sydney H. (1996) "On the playgrounds of America, Every Kid's Goal is to Score: In Pakistan, Where children stitch soccer balls for Six Cents an hour, the goals is to Survive." Additional reporting by Jimmie Briggs (See Pakistan).
October 3, 1996. CNW. Nike announces the establishment of Labor Practices Department headed by Dusty Kidd.
October 17, 1996 - Nike Labor Pracices in Vietnam - 48 Hours Transcript of CBS News 48 Hours, aired October 17, 1996 (press here)
October 31, 1996. Nike Press Release. The opening of NikeTown in New York City is site of first consumer protest. This shoe store costs Nike over $200 million to build, 4 times more than what Nike paid to all of its factory workers last year.
November 1, 1996 - Nike: The Manhattan Jinx Strikes (press here) 11/1/96 4:00 PM ET Is Nike (NKE: NYSE) the latest company to fall victim to the "Taj Mahal Syndrome?" According to Wall Street lore, whenever a company opens a posh corporate headquarters or a retailer opens an extravagant flagship store in Manhattan, investors see nothing but a loss of corporate savvy. Why, they wonder as they ride trains to Greenwich and take helicopters to the Hamptons, would anyone want to open a fancy operation in Manhattan? Well, on Friday, as if directed from a script, Nike opened its largest and most "ambitious" Nike Town store to date amidst much hoopla and the stock got slammed harder than a Michael Jordan dunk. Nike shares fell 4 + to 54 7/8. ... The sports apparel giant has the dubious luxury of not needing to make the store profitable since they dominate the athletic footwear market with 37%. For fiscal 1996, Nike earned $553.2 million, or $3.77 a share, compared with $399.7 million, or $2.72 a share, a year earlier.
November, 1996 Report Released - (press here) Sweating for Nike A Report on Labour conditions in the sport shoe industry Community Aid Abroad Briefing Paper, No. 16 - November, 1996 Tim Connor and Jeff Atkinson This report gives a thorough overview of the history of conditions in Nike factories inIndonesia up until November 1996.
November 29, 1996 - (press here) - Reebok Runs Like the Bulls By Avi Stieglitz 11/29/96 3:45 PM ET Can Allen Iverson be like Mike? Reebok (RBK:NYSE) has bet heavily--signing the fleet-footed, diminutive Philadelphia 76er rookie point guard to a $40 million dollar multiyear deal--in the hopes that he will be able to replicate the success Michael Jordan has had endorsing basketball shoes for Nike (NKE:NYSE).
Feb, 1997 Nike stock peaks at $76. (press here) The stock traded lower toward the end of 1996, possibly because many investors concerned about the valuation began to sell. Nike had risen from a split-adjusted $32 1/2 in October 1995 to $62 in only one year and many thought that this was as good as it would get.
February 13, 1997 - (press here) - Converse Kicks Around the Super Show By Avi Stieglitz 2/13/97 2:00 PM ET ATLANTA -- It is fitting that Converse (CVE:NYSE), whose stock has been on the rebound in recent months, signed the NBA's king of rebound, Dennis Rodman, to a sneaker contract late last month. Converse's stock suddenly has the legs of the colorful Chicago Bulls forward, soaring from 3 7/8 several months ago to 20 3/4. On Wednesday alone, the stock moved 4 3/8, or more than 20%, on news that the company had settled legal problems and that two analysts had upgraded the stock to a buy. On Thursday, Converse rose 1/8 to 20 7/8.
February 18, 1997 - (press here) - Nike stock climbed 72 percent in 1996 and has risen about 13 percent so far this year... Nike sales have shot up all over the world, including a 200 percent increase in Japan and a 93 percent gain in Britain. Its debt is down to below 5 percent of capitalization (compared with about 50 percent for Reebok).
February 22, 1997 - (press here) - On February 22, hundreds of activists filled San Francisco's Union Square on the opening day of Niketown, a multi-floor Nike superstore. Outside theentrance, hundreds of protesters chanted, "Just don't do it!" and urged prospective customers tostay away. New Republic
February 24, 1997 - (press here) Nike announces former Ambassador Andrew young will investigate the allegations of labor abuse. New Republic. (For Andrew Young Report, press here)
March 1, 1997 - (press here) - Tuesday: Sneaker Rumors Come Untied By John J. Edwards 3/11/97 6:00 PM ET What little excitement there was Tuesday on the Street seems to have been for naught. Nike's (NKE:NYSE) loss on the day appears to have been caused by a mere chimera. A report that the Foot Locker chain had pared its Nike orders for fall originated in Sporting Goods Intelligence, a trade magazine, and swept through the market. But after the close, Woolworth (Z:NYSE), Foot Locker's parent, said the rumor was bogus. "We had a terrific year last year and plans with Nike continue to go forward uninterrupted," a Woolworth spokeswoman told Reuters.
March 8, 1997 - Date that Nike workers in Vietnam run around the compound as punishment. The incident is reported in the Vietnam press and trickles into Western media columns. Supervisor Hsu was accused of forcing 56 female workers at the Nike plant run laps as punishment for not wearing regulation shoes. She was suspended by Nike in response to a labor rights report by activist Thuyen Nguyen. At least 12 of the women fainted and were hospitalized, Nguyen said in the report.
March 2-18, 1997 VLW- Vietnam Labor Watch Report is conducted (press here)- Vietnam Labour Watch Reports This report and its highlights are the result of a six month effort by Vietnam Labor Watch (VLW) to understand the working conditions of workers at factories in Vietnam that make Nike products. The effort was started in October 1996, after the CBS News program 48 Hours ran a segment detailing the abuse of Nike workers in Vietnam.
March 21, 1997 (press here) - Nike running wild Analysts lace up excitement as earnings race past expectations From Correspondent Bill Tucker March 21, 1997: 7:24 p.m. ET Converse rebounds - Feb. 21, 1997 Knight waffles on success - Feb. 4, 1997 Rodman splits with Nike - Jan. 10, 1997 Running shoes gaining - Nov. 8, 1997 Nike.com NEW YORK (CNNfn) - Shoe giant Nike Inc.'s stock fell 2-1/4 Friday to close at 65-1/4, even though the company unveiled marathon quarterly results late Thursday.
March 28, 1997 IN AMERICA / By BOB HERBERT, New York Times Aricle - "Brutality in Vietnam" -- "That was horrible," said McClain Ramsey, the chief spokeswoman for the Nike footwear empire. "That was definitely horrible. Nike is definitely outraged that that was allowed to happen in a factory. I know that the manager has already been suspended. Nike has called for a full investigation, as have the authorities. That was just totally outrageous. I mean Nike is completely horrified."
April 14, 1997 (press here) - Monday: Dow in Correction Territory; Nike Gets a Tiger Boost By By John J. Edwards III 4/14/97 11:45 AM ET Staff Reporter - ... A note from the sporting world: The historic triumph of Tiger Woods at the Masters tournament is just doing it to Nike's (NKE:NYSE) shares, which are up 3/4 at 55 3/4.
April 16, 1997 - Riding The Roller Coaster by Risa Kaplan- (press here) -On April 16, retailer FOOTSTAR (NYSE: FTS) announced it would have lower-than-expected sales at its athletic shoe outlets. As the company is one of Nike's biggest customers, this appeared to confirm the comments Landis had made. As if Nike was not having enough problems, it was around this time that national press reports began to appear that characterized Nike as a big bad company engaged in "unfair labor practices" in Asia.
April 17, 1997 - (press here) - Nike: Bully on the Block? By Suzanne Kapner Staff Reporter 4/17/97 12:00 PM ET The Smith Barney/Nike (NKE:NYSE) tangle just keeps getting messier. A week after the Street reeled on reports from Smith Barney analyst Faye Landes that Nike would cut shoe production 20% from May through July -- a prediction Nike denied -- the chatter has turned ugly. During a Merrill Lynch conference last week, Nike's chief financial officer, Robert Falcone, made remarks that at least some listeners considered disparaging toward Landes. "The comments had a venomous tone," says one person who was present but asked not to be identified. ... At least a couple of other analysts apparently agree with Landes that Nike's in for some rough road. Days after Landes downgraded the stock from outperform to neutral, Gruntal & Co. and Donaldson Lufkin & Jenrette did the same. After Landes' downgrade, the stock dropped from 59 1/8 to 54 7/8. Though it subsequently regained some of that loss, it was back trading around 53 1/4 on Thursday.
April 18, 1997 (press here) - Kudos from Cramer to Landes and Kurlak By James J. Cramer 4/18/97 10:15 AM ET - When she downgraded Nike recently she did so not to make a name for herself -- she has a good one already. She didn't do it to get the investment banking business of Adidas. She didn't do it because it was Institutional Investor balloting season. She did it because she was afraid she would cost us money if she stuck with the Nike buy rec. She did it to preserve clients' wealth. That's all we ever ask for. She didn't do it lightly. I remember after a brutal Montgomery downgrade of Nike last year Faye kept me in through repeated phone calls. I averaged down, waged the war, made it back, and then some. And she was dead right. That anybody would take a shot at her from Nike now is unconscionable
April 23, 1997 - 13,000 Nike workers on Long March; Tangerang totally (press here) Jammed Republika, 23 April 1997 Angered by the failure of their employers to pay the increased minimum wage, at least 13,000 workers of the Hardaya Aneka Shoes Industry, Tangerang, who manufacture Nike footwear, marched ten kms to the local assembly building in Tangerang.
April 26 1997 - Strikes and labor unrest in Indonesia and Vietnam (press here) JAKARTA, April 26 (Associated Press) - Officials ordered a factory that makes Nike shoes shut down Saturday after workers burned cars and ransacked its offices, saying the company wasn't paying them a $2.50 a day minimum wage. Almost half the factory's 10,000 employees took part in Friday's demonstration at Tangerang, an industrial town outside Jakarta
May 2, 1997 - Nike workers strike! Mike Rhodes (press here) "On April 22 and then again on April 25, 10,000 workers went on strike at a Nike factory in Indonesia. During the same week, 1,300 workers went on strike at a Nike factory in Vietnam. Also (press here) for similar report.
May 6, 1997 (press here) - Nike Battles Back Against Deluge of Bad News By Avi Stieglitz Staff Reporter 5/6/97 1:00 AM ET A deluge of negative sentiment surrounding sneaker powerhouse Nike (NKE:NYSE), from consecutive pessimistic stories in The Wall Street Journal this past week to the steady stream of scathing commentary from Bob Herbert in The New York Times, may mean that it's time for contrarians to jump back into Nike stock.... After industry-wide euphoria emanating from the sporting goods Supershow in mid-February pushed the stock to an all-time high of 76, Nike's stock slipped 32% to 51 3/8 by April 18 amid concerns of weaker athletic footwear growth in the U.S. The Wall Street Journal's influential "Heard on the Street" column rehashed many of these dated worries on Friday, helping push down Nike's stock 1 5/8 to 55 7/8. The stock regained that ground early in Monday's trading session despite a front-page story in the same paper outlining difficulties Nike is facing as it attempts to build international sales. Midday Tuesday the stock was trading at 59 1/8. The domestic slowdown should have come as no surprise to anyone who follows the company closely; for the past year, Nike has been warning that sales of its popular basketball and running shoes in the U.S. would moderate and that it was emphasizing international sales for both revenue and earnings growth. ... While Monday's 2,500-word Journal story made the case that Nike is tempering some of its provocative marketing and advertising strategies overseas to avoid backlashes, the story did not offer any concrete examples of why Nike's international growth goals are unattainable.
May 27, 1997 - Riding The Roller Coaster by Risa Kaplan- (press here) -On May 27, the clouds appeared to part as Nike jumped from $55 1/4 to $60 in one hectic session and no one could pinpoint exactly why. The next day, rumors emerged that Warren Buffet's BERKSHIRE HATHAWAY (NYSE: BRK.A) was interested in accumulating more of the Oregon-based sneaker company. This was not as huge a surprise as it was painted, however, as Berkshire already owned five million shares of the 287 million outstanding through its GEICO insurance subsidiary.
May 27, 1997 - Riding The Roller Coaster by Risa Kaplan- (press here) - Just as things seemed to improve, the other sneaker dropped on May 29. Nike announced that earnings for the fourth quarter would be between $0.51 and $0.56 per share, well below the consensus estimate of $0.69 per share. The company blamed lower-than-expected revenues due to order mix, shipments timing in Europe, product shortages, and a slight increase in U.S. order cancellations. The company also reported that earnings would be impacted by a one time pre-tax charge of $18 million related to the shutdown of a manufacturing facility at its Bauer Inc. subsidiary as part of its long-term plan to reposition some manufacturing facilities to more cost-effective overseas operations. Disappointed shareholders drop-kicked the stock for $8 3/4 to close at $55 3/4. Since that nasty week, shares of Nike have slowly started to climb back on average volume to close Wednesday at $60 3/8. Even a Goldman Sachs & Co. downgrade to "market outperformer" from the U.S. "recommended list" on June 6 hasn't had that much impact.
May 29, 1997 (press here) - Thursday: Market Looks Firm, Nike Looks Bad By Justin Lahart Staff Reporter 5/29/97 5:00 AM ET "The disaster of the day is Nike (NKE:NYSE)," says Baker. Nike warned that its earnings for the fourth quarter ended May 31 will be between 55 and 60 cents a share, excluding charges. That's well below First Call consensus estimates for earnings of 69 cents a share. The shoemaker also said that it would take a charge of 4 cents a share for the closing of one of its Bauer subsidiary's plants. Yesterday, Nike shares gained 3 7/8 to 64 on rumors that Warren Buffett has been putting more of his chips on the company. "Nothing like making a big sale ahead of news," says one trader.
May 31, 1997 - (press here) The cracks in the production process became apparent toNike investors in the fourth quarter of its 1997 fiscal year, which ended May 31. The company's revenue fell short of expectations in part because it was late in shipping some products, mostly apparel. Officials said the late shipments reduced fourth-quarter revenue by about $30 million.
June 3, 1997 - (press here) - WSJ After years of increasing market share, landing top endorsers and placing its Swoosh logo on just about everything, Nike suddenly seemed vulnerable last week when it announced its fiscal fourth-quarter earnings would be below Wall Street forecasts; the news sent Nike stock tumbling 13 percent in Thursday trading on the New York Stock Exchange. Expectations were high because of the company's remarkable growth over the past several quarters, with profit increases as high as 80 percent in recent periods.
June 27, 1997 - Nike Supervisor Gets 6 Months for Abusing Workers (press here) By Ian Stewart June 29, 1997 Ho Chi Minh City, Vietnam (AP) -- A floor manager at a Taiwanese-owned factory that makes shoes for Nike was sentenced Friday to six months in prison for physically abusing workers.
July 1, 1997 - (press here) - Tuesday: Nike Earnings Fall Short of Lowered Estimates By 7/1/97 6:00 PM ET Compiled by John J. Edwards III Staff Reporter ... Nike (NKE:NYSE) continued to tread a disappointing path, reporting fourth-quarter earnings of 52 cents per share versus 46 cents a year earlier. The 17-analyst First Call consensus estimate was 53 cents, however. Estimates were trimmed from 69 cents after Nike warned May 29 of a coming shortfall. Nike shares dipped to 58 after hours from their close at 58 13/16, Reuters reported.
July 14, 1997 (press
here) - A Bangladesh newspaper, The
Independent of Dhaka, reported on July 14 that nine workers from the
Youngone factory were in jail, 300 injured (50 seriously), 97 fired
and 800 charged with criminal offenses after they tried to present a
statement to their employer, a Nike contractor. But before workers had
a chance to make their statement, which included a demand for the
release of two
colleagues arrested earlier that week, they were overwhelmed by a large police contingent.
AUGUST 25, 1997 - (press here) - Even by New York City standards, it was an impressive party. To celebrate the opening of the Manhattan Nike Town at 57th and Madison last fall, Nike held a gala. Its five-story footwear cathedral was outfitted with a giant movie screen, automated product displays and 66,000 square feet of Nike gear. More than 400 staffers, VIPs such as Donald Trump and Carl Lewis and select members of the media crowded into the space to toast Nike's new digs.
August 27, 1997 - (press here) - Nike Insiders Dump 467,492 Shares - WSJ - NEW YORK (Reuter) - A group of 12 Nike Inc insiders sold 467,492 shares in the company's stock last month, the Wall Street Journal reported Wednesday in its "Heard on the Street" column. The insiders, including Nike's president, Thomas Clarke, and its chief financial officer, Robert Falcone, sold the shares at prices ranging from about $59 to $63 a share, the paper said in its electronic edition Wednesday. "If you look at who sold, it was everyone who was important in the company," said Alice Ruth, an analyst at Montgomery Securities. Nike chairman and chief executive Philip Knight was not among the sellers, the paper said. Nike shares closed down 2/16 Tuesday at 55-3/16.
September 17, 1997 - (press here) - On Earnings Eve, Swoosh Sucking Wind By Suzanne Kapner Staff Reporter 9/17/97 5:55 PM ET Nike (NKE:NYSE) has been more like a foul than a slam dunk this year for investors. And according to several analysts and portfolio managers, the pain won't subside in the next few months. The Swoosh slump began when retailers reported slowing sneaker sales this spring. Since then the Street has disagreed over Nike's prospects. Bulls champion international growth, which has been soaring. Bears point to the sluggish domestic market, which has slackened in the wake of the much-publicized dip in basketball sneaker sales. Now there's Street chatter of problems in the fast-growing Asian market, and expectations for falling gross margins and rising inventories. Some company watchers say the stock could fall to the mid-40s. Wednesday it closed at 53 1/8, off its 52-week-high of 76 3/8.
September 18, 1997 (press here) - Nike Beats Q1 Estimate, But The Game's Not Over By Suzanne Kapner Staff Reporter 9/18/97 7:23 PM ET Nike's (NKE:NYSE) stock drifted higher Thursday ahead of the company's fiscal first quarter earnings report, released after the market closed, but certain details discussed in the conference call could damp any good feelings stemming from the profit news. Nike did beat analysts estimates for the quarter, as measured by First Call, by a penny, earning 85 cents per share. But analysts who participated on the conference call indicated that there is a strong possibility that the consensus earnings estimate of $2.95 for the fiscal year will be revised downward. Nike Chief Financial Officer Robert Falcone said earnings for the year would only modestly beat last year's $2.69 per share.
September 19, 1997 (press here) - Nike Takes it on the Chin After Earnings Report By Suzanne Kapner Staff Reporter 9/19/97 12:55 PM ET Nike (NKE:NYSE) shares drifted lower Friday morning after investors digested the company's first quarter earnings, which were released yesterday evening. After a delayed opening, the stock traded as low as 53 1/2, before rebounding to 54 1/4 by midday. Thursday shares closed at 54 7/8. ... As a result, one of Nike's staunchest supporters, Salomon Brothers analyst Brett Barakett, lowered his rating on Nike Friday morning from a strong buy to a buy. He also lowered his fiscal year estimates from $2.97 per share to $2.72 per share. Salomon Brothers has not performed any recent underwriting for Nike.
September 21, 1997 - TRAC Study on Nike in China Released (press here) - Working Conditions in Sports Shoe Factories in China Making Shoes for Nike and Reebok By Asia Monitor Resource Centre and Hong Kong Christian Industrial Committee, Hong Kong
September 21, 1997 - Nike Can Still Run Faster, Jump Higher - By Stacey L. Bradford (press here) Given the hubbub surrounding Nike earnings over the past few days, you'd think there was something new -- and newly bad -- to report about the world's largest shoe company. In fact, the first-quarter results announced after the close on Thursday were probably a little better than might have been expected, given Wall Street's gloomy predictions following the May quarter. It is true that Nike's colorful chairman, Phil Knight, warned analysts that earnings for the year ending next May will probably be only slightly ahead of last year's. And the company predicted that a slowdown in U.S. sales this fall will dampen overall revenue growth as well. But this much had been predicted ever since Smith Barney analyst Faye Landes noted this spring that Nike would slow production because of growing inventories. Nike overpriced its shoes and is now suffering the consequences. That's why the stock has fallen to 54 from its February peak of around 75.
September 23, 1997 - (press here) - Nike announced they are cutting ties with four Indonesian companies who refused to comply with the company's standards. Citing reviews of wage levels and "sweatshop" working conditions, Nike determined four companies, including Seyon, which makes its sports gloves, were not in compliance with Nike's code of conduct. The announcement was made at Nike's annual shareholder's meeting yesterday.
Sepember 27, 1997. Some Youthful Foes Go Toe to Toe With Nike from the New York Times. Dozens of young people from 11 settlement houses around the city are planning to dump their old Nikes at the store to protest what they say is the shoe company's double exploitation of the poor.
October 18, 1997 (press here) there will be the 2nd international mobilization in support of the rights of Nike production workers. International Boycott Nike day (Has good analysis of Nike-Vietnam worker pay stubs). See also (press here) for paystubs.
October 26, 1997 - - Nike Supports Women in Its Ads but Not Its Factories, Groups Say By Steven Greenhouse New York Times. A coalition of women's groups has attacked Nike as hypocritical for its new television commercials that feature female athletes, asserting that something is wrong when the company calls for empowering American women but pays its largely female overseas work force poorly. (Press here) for story and CLR site.
October 26, 1997. The Trouble With Role Models from Washington Post. Among the many carefully detailed omissions and distortions in the Young report is the highly embarrassing fact that Young, in talking with Vietnamese workers, used Nike translators. As Stephen Glass notes, Garry Trudeau -- in his widely syndicated comic strip, Doonesbury -- presented a Nike translator rendering "the [Asian] workers' pleas of mistreatment into joyous reports of a labor paradise."
October 26, 1997. Women's groups blast Nike's latest ad campaign from Reuters. Fifteen U.S. women's groups, author Alice Walker and the head of the Congressional Black Caucus joined forces on Monday to put pressure on Nike Inc. (NIKE) to improve conditions for its workers in Asia. The groups took issue with Nike's latest advertising campaign, which features women empowered by athletics, saying Nike's treatment of Asian factory workers -- most of whom are young women -- must improve if U.S. women were to buy Nike products in good conscience
October 27, 1997 - (press here) New Jersey schoolchildren staged an anti-Nike play on Broadway Oct. 27.
October 28, 1997 - Nike: A Silver Lining to the Asian Crisis? (press here) So did Nike (NYSE:NKE - news) sidestep the market massacre on Monday? Hardly. It fell another 2-13/16 or 6% to a new 52-week low. Nike is also one of those companies that generates a lot of sales in Asia, but the damage to the top line (revenues) could be more than offset by lower costs, leaving the bottom line stronger in the end. Asia Pacific revenues jumped to $1.2 billion in fiscal year 1997, but that amounted to just 13% of total sales. Japan accounts for half of the region'ssales, and the currency problems there have been minor lately compared to many other Southeast Asian countries.This does not mean investors can expect Nike to rally while the rest of the market falls like a load of bricks. It does make a good case, though, for expecting less of a hit compared to other companies which manufacture here and sell in Asia. Of course, there are plenty of other issues affecting Nike's share price that investors must consider, and Nike's sell-off started well before the Asian currency crisis began to rattle U.S. stocks. Indeed, after months of speculation that the domestic market for athletic shoes and apparel was slowing early this year, the company finally warned that its revenues and earnings would fall well short of expectations for the quarter ending May 31. Then in September the company reported 10% growth in futures orders and warned "futures orders indicate that year-over-year revenue growth [in fiscal year 1998] will likely be slightly below our previously-stated long term revenue growth target of 15%."
November 7, 1997 (press here) - Transnational Resource & Action Center---Corporate Watch--- FOR IMMEDIATE RELEASE: November 7, 1997 Secret Ernst & Young Audit of Nike in Vietnam Exposes Hazardous and Unjust Working Conditions: Accounting Firm's Labor and Environmental Auditing Competence Comes Under Fire as TRAC Independently Documents Even Worse Conditions Inside the Same Nike Factory Audit, TRAC Report and First Photos From Inside a Nike Vietnam Plant Available on Corporate Watch
November 8, 1997 Nike
Shoe Plant in Vietnam Is Called Unsafe for Workers
By STEVEN GREENHOUSE. This is the NY Times article that broke the audit story (press here) but you will need to get free subscription to enter site.
November 10, 1997 (press here) - SMOKE FROM A HIRED GUN: A Critique of Nike's Labor and Environmental Auditing in Vietnam as performed by Ernst & Young by Dara O'Rourke November 10, 1997 Transnational Resource and Action Center (TRAC)
November 11, 1997 (press here) East Timor/Nike Activists on Hightower Radio! On Tuesday, November 11, Nina Maria da Costa, an East Timorese human rights activist, and Max White, founder of the "Justice--Do It, Nike" campaign, will be interviewed on Jim Hightower's national radio program, "Hightower's Chat & Chew". The 20-minute interview will be followed by 40-minutes of national call-in. Listeners on 120 stations across the country can join the conversation with Nina and Max by calling 800 TALK-YES.
Novermber 19, 1997 - Congress Critical of Asian Workplaces - Nike Defends Labor Practices “We think the Nike labor record abroad is atrocious and Mr. Knight must begin to treat Third World workers, mostly women, with respect.” — U.S. Rep.Bernie Sanders,I-Vt. By Scott Sonner The Associated Press W A S H I N G T O N, Nov. 19 — Nike President Philip Knight defended his company's labor practices Wednesday in a letter to congressional critics of low wages and poor working conditions at Nike factories overseas. (Click here) for ABC News story.
December 4, 1997 (press here) - Nike (NKE:NYSE) can't outrun the options players who have been speculating on disappointing earnings this week. With Hambrecht & Quist down on the Swoosh, December and January puts at the 50 and 55 strike prices were busy earlier this week. Today, two traders hit the company's January 37 1/2 puts, trading more than 10,000 contracts. Options traders said today's action might have been market makers hedging themselves to offset the week's earlier activity. Nike is scheduled to report earnings Dec. 18. Nike shares have been in a slump since mid-August and today were trading slightly above 47.
December 11, 1997 (press here) - Market Skids on Asian Jitters, Earnings Warnings By Justin Lahart Staff Reporters 12/11/97 11:16 AM ET Traders took to their desks this morning knowing that they were in for an ugly market. Asia had tanked overnight, and the news out of Korea, where more bankruptcies are expected and anger over the austerity measures demanded by the IMF bailout package are rising, is grim.... The shoe stocks are getting hit, as investors wonder if Reebok's troubles are sectorwide. Reebok is off 3 3/4 at 21 9/16, while Nike (NKE:NYSE) is down 1 at 45 1/2. Woolworth (Z:NYSE), which derives most of its earnings from its Foot Locker division, is down 1 3/16 at 20 5/8.
December 11, 1997 (press here) - Reebok's Warning Reveals Weakness in Overall Sneaker Market By Amy Olmstead Staff Reporter 12/11/97 5:14 PM ET Sneaker stocks are getting trampled today, after Reebok's (RBK:NYSE) earnings warning revealed a worn-out sports shoe industry. Reebok, the number two athletic shoe company in the world, announced that it will not meet earnings expectations for 1997 and that problems would seep into the first half of 1998. ... Reebok's stock closed down more than 11% at 29, compared with industry leader Nike (NKE:NYSE), off about 3% at 45 1/16, number four player Fila (FLH:NYSE), off 5% at 22 15/16, and Converse (CVE:NYSE), 4% lower at 6 1/16. Reebok is now suffering its third significant price drop this month, but analysts point out that no company is escaping the pain.
December 12, 1997- Real life lessons taught through fictitious team Jaynes: Company's eye on future by Dwight Jaynes of The Oregonian staff (press here) Perhaps you have seen the first commercial in the series already. It began a week ago, running on such network shows as "Buffy the Vampire Slayer" and "Moesha." They will show up on MTV and ESPN, too -- so perhaps we all eventually will see them. Nike calls the spots "The Championship Season," and there are 12 parts, a mini-soap opera that takes you through an entire season with a high school girls basketball team -- from cut day through the state championship game.
December 12, 1997 (press here) - Asia Remains the Focus for a Nervous Wall Street By Justin Lahart Staff Reporter 12/12/97 6:38 PM ET ... Investors will get an idea whether Reebok's (RBK:NYSE) warning last Thursday signals an industry-wide problems when Nike (NKE:NYSE) reports its second quarter on Thursday. The shoemaker is expected to post earnings of 55 cents per share.
December 18, 1997 (press here) - Nike (NKE:NYSE) reported second-quarter earnings of 48 cents per share, 7 cents short of the 18-analyst estimate and down from the year-ago 60 cents. The company also set a buyback of up to $1 billion worth of its shares. Nike is no stranger to earnings struggles, as TheStreet.com reported in a Sept. 17 story and a Sept. 19 follow-up.
December 19, 1997 (press here) - As If Triple Witch Wasn't Enough, Asia Collapses and Nike Misses By Justin Lahart Staff Reporter 12/19/97 9:24 AM ET Put your tin helmet on. Even on a normal day, this morning would not be good. An earnings disappointment from Nike (NKE:NYSE) la st night on Asian and inventory woes, and then drops in Asia's and Europe's bourses. Those are the kinds of things that set Wall Street up for a hard slog. But today is triple-witching Friday, the quarterly expiration of index futures and of options on stocks and index futures. Any moves today will be amplified through the triple-witch.
December 20, 1997 (press here) - Analyst Scorecard After Nike Miss By Suzanne Kapner Staff Reporter 12/20/97 12:33 PM ET As Nike (NKE:NYSE) missed its quarter this week, one thing became clear: Wall Street is not always of one mind. Some analysts and money managers had abandoned Nike long ago, while others stayed loyal until the problems were impossible to ignore. As the dust settles, a look back shows how some lost faith in Nike despite company reassurances. For instance, in April when Smith Barney analyst Faye Landes said that the company would cut shoe production by 20% from May to July, Nike Chief Financial Officer Robert Falcone said Landes was wrong. He also made disparaging remarks about the All-Star analyst at a Merrill Lynch conference. Then in early September rumors about a slow down in Asia spread through investment circles. But on a conference call after Nike released first-quarter earnings on Sept. 18, the company insisted Asian business was strong. It pointed to a 38% increase in futures orders -- those scheduled for advanced delivery. Later in the month, Nike President and Chief Operating officer Tom Clarke endorsed analyst earnings estimates of 2.80 per share for FY 98, which ends May 31. But Thursday, in its second-quarter earnings release, Nike Chairman and Chief Executive Philip Knight warned that earnings for the year would range between 2.00 and 2.15 per share.
December 30, 1997 (press here) - 'I Can' might just do it for Nike The company takes a risk calculated to boost sales despite fickle fashion trends and sullied sports appeal By Jeff Manning of The Oregonian staff "Just Do It" is no longer doing it.
December 31, 1997 (press here) - AP - Nike hopes motto will give buyers new can-do attitude `I Can' replaces dated `Just Do It' By BOB BAUM
January 2, 1998 (press here) - A model of understatement In his quiet way, Michael Jordan makes a difference... By Steve Marantz The Sporting News 01/02/98
January 23, 1998 Nike:
Calling All Contrarians? (press
here) The problem for Nike was fairly simple: the market for
athletic footwear and apparel slowed.
What seemed to make
it worse, though, was that on several occasions when problems for
other companies in the industry surfaced, Nike contested efforts to
extrapolate that trouble onto their business. When Nike eventually
warned of disappointing quarterly earnings, the company tried to
downplay it with statements like "We really think that we're
going to have an outstanding year this year." Nike also said it
expected annual growth in the neighborhood of 15%-18%, only tocome
back a few months later and warn "futures orders indicate that
year-over-year revenue growth [in fiscal
year 1998] will likely be slightly below our previously-stated long
term revenue growth target of
15%."Analysts have repeatedly slashed earnings estimates over the
past several months to where they now expect a decline in Fiscal Year
1998 (ending in May) earnings per share. The FY98 consensus is for
$2.03, a 24% decline versus FY97. The FY99 consensus has also dropped
nearly a dollar to
March 19, 1998 (press here) Nike swoosh sags, but still cool for some G.I. residents Last modified at 7:30 a.m. on Thursday, March 19, 1998 Staff and wire reports Nike just isn't doing it anymore. After spending millions to put its swoosh logo on sports stars from Michael Jordan to Tiger Woods and enjoying annual growth of 35 percent over the last three years, the shoe manufacturer has hit a wall. Nike announced a 69 percent drop in profits Wednesday, the second straight quarterly decline, and said it would lay off 1,600 workers.
March 23, 1998 The Trouble With Nike by Jim Surowiecki(press here) Now, as the numbers in Nike's third-quarter earnings report -- issued last Wednesday -- suggest, much of what's wrong with the shoe and apparel manufacturer right now is simply a function of poor inventory management and demand forecasting, coupled with the ongoing and dramatic slump in Asian sales. Nike had anticipated a doubling of Asian revenues this year, but saw instead a decline. In no small part as a result, in the middle of last month the company reported that its inventory had soared $500 million, to $1.4 billion. Nike has had recurring problems managing the flow of goods from manufacturers to retailers and is seeing the full effects of those problems at this moment.
ADIDAS/NIKE - March 30, 1998 - Can Nike Get Unstuck? By BILL SAPORITO /BEAVERTON (Time.com) Once a brash, hard-running firm with soaring numbers, Nike lurched to a stop this year. A new product line and a new attitude are the keys to hitting its stride again
March 30, 1998 (press here) VOL. 151 NO. 12 Time.com Taking A Look Inside Nike's Factories By BILL SAPORITO Last week an activist group called the National Labor Committee accused Nike and other companies of running virtual slave factories in China, alleging that workers are habitually overworked and underpaid. It's the kind of charge Nike has faced, and denied, repeatedly regarding its operations in Asia. Nike subcontractors employ nearly 500,000 workers in plants in Indonesia, China and Vietnam.
May 12, 1998 - (press here) - NIKE CEO PHILIP H. KNIGHT ANNOUNCES NEW LABOR INITIATIVES May 12, 1998 NIKE's PRESS RELEASE Washington, DC (May 12, 1998) - At a National Press Club luncheon today, Nike CEO Philip H. Knight announced a series of new initiatives to further improve factory working conditions worldwide and provide increased opportunities for people who manufacture Nike products.
May 12, 1998-Nike to Improve Conditions - Nike has seen its image tarnished by repeated criticism from human rights groups that the company takes advantage of its workers in developing countries by paying them low wages under poor working conditions By Harry Dunphy The Associated Press W A S H I N G T O N, May 12 — Seeking to lift the "cloud that has been over Nike's head," chairman Phil Knight said today that the shoe giant is raising the minimum age for workers and making other improvements in working conditions in Asian factories. (click here) ABC News story.
May 13, 1998 - NIKE ANNOUNCES NEW INITIATIVE Nike critics voice hopes and reservations Nike, whose Asian workers already enjoy the highest standard of empty promises of any in the industry, unveiled yet another initiative yesterday in a long-standing effort to clean up its tarnished image. (press here) for CLR newsletter.
May 13, 1998 (press here) Nike Pledges to End Child Labor and Increase Safety New York Times By JOHN H. CUSHMAN Jr. WASHINGTON -- Bowing to pressure from critics who have tried to turn its famous shoe brand into a synonym for exploitation, Nike Inc. on Tuesday promised to root out underage workers and require overseas manufacturers of its wares to meet strict U.S. health and safety standards.(press here) for CLR reactions to Nike Pledges.
May 14, 1998 - (press here) - Workers wary Nike reforms will fit The scope of Phil Knight's promises elude Indonesians with more immediate needs By Richard Read of The Oregonian staff T ANGERANG, Indonesia -- Shoe factory worker Dominguez Pirida strained Wednesday to comprehend workplace improvements pledged by Nike Chairman Phil Knight, a man whom he'd vaguely heard of half a world away. Better air quality inside plants sounded good. Improved independent monitoring of Nike's contract factories seemed fine.--- Nike, the world's largest athletic footwear and apparel company, posted $9.1 billion in sales last year. But demand has slowed for its products, and stock prices have dropped, resulting in layoffs of 1,600 Nike employees. That does not include the workers who have lost their jobs at factories operated by contractors.
May 21, 1998 Nike Blinks - (press here) IN AMERICA / By BOB HERBERT The New York Times Let's not be too quick to canonize Nike. Philip Knight, Nike's multibillionaire chairman and chief executive, managed to generate a lot of positive press last week when he announced that independent organizations would be allowed to inspect the overseas factories that make his company's products, that he would toughen the health and safety standards in the factories and that he would crack down on the use of child labor.
June 15, 1998 (press here) - Factories struggle to cope amid Asia's economic crisis Falling orders, sliding currencies tempt subcontractors for Nike to cut corners as their profit margins shrink Monday, June 15 1998 By Richard Read of The Oregonian Live staff CU CHI, Vietnam -- Lim Dukjoo, who runs a troubled factory that makes Nike sneakers, told authorities in April that he couldn't afford to pay each worker a $45 monthly minimum wage. D.J. Lim wrote twice this year asking government officials to exempt his plant from the minimum wage of Ho Chi Minh City, which administers his rural district. He said the factory lost $6.1 million in 1996 and $2.4 million in 1997.
August 14, 1998 (press here) - NO BONUS FOR PHIL KNIGHT - Bloomberg News reported on August 14 that Nike awarded no bonus to Chairman and CEO Philip Knight for the most recent fiscal year, cutting his pay to $1.68 million. Consumer concern about sweatshop issues, added to Asia's currency crisis and a sluggish U.S. market, slashed Nike earnings 40 percent to $479.1 million. Nike shares fell 20 percent during its fiscal 1998. Knight, including his family and charitable trust, holds a 34 percent stake in Nike. NIKE MOVES ITS SHAREHOLDER MEETING TO MEMPHIS, TENN.
September 17, 1998 Nike Earnings Report Relesed- (press here) There's no question about it, Nike's earnings report today was a disappointment. The company may have exceeded analyst's earnings expectations... Nike Stockholders Meeting Moved to Memphis, TN It appears that Nike has moved it's September 21st stockholders meeting to Memphis, TN (press here).
September 18, 1998 - (press here) - On September 18, 1998, " Nike shares rose as much as 11 percent today after the world's biggest maker of athletic shoes said lower costs and fewer markdowns resulted in better-than-expected earnings in the fiscal first quarter."
October 16, 1998 (press here) - October 16, 1998 -- The 25 Percent Minimum Wage Increase Comes in Response to the Asian Financial Crisis, But Critics Say the Company Has a Long Way to Go. By Cristine Gonzalez The Oregonian October 16, 1998.
November 12, 1998 Nike fights battle over bad image (press here) WILLIAM MCCALL BEAVERTON, Ore. (AP) - For years, the Nike name conjured up heroic images of Michael Jordan and Tiger Woods. The swoosh made many people feel as if they were winners. That Nike cachet has been clouded by a new image - of Asian workers in hot, noisy factories, stitching together shoes for as little as 80 cents a day. Suddenly, Nike doesn't seem so cool anymore. The biggest swoosh now is the sound of falling profits.
November 18, 1998 Nike Said to Just Do It - Brutally Labor Group Charges Harsh Conditions Persist (press here) by Marc SelingerThe Washington Times p. B7-B8. The famous Nike slogan "Just Do It" might include he words "Or Else" if Salvadoran garment worker Julia Esmeralda Pleites could rewrite it. Miss Pleites, 22, said through an interpreter that she endured brutal conditions making Nike shirts at a factory new San Salvador. (press here) for report on conditions in El Salvador plant. (press here) for witness testimony. And (press here).
November 18, 1998 (press here) - Nike Sweatshop Worker Calls Low Pay `Unjust' THE ASSOCIATED PRESS WASHINGTON -- Until she was fired, Julia Esmeralda Pleites earned 40 cents an hour in El Salvador sewing together shirts with the Nike trademark. She was amazed to find her work selling for $75 apiece in North America.
December, 1998 - (press here) - Nike: NBA not carrying swoosh The Beaverton company says its earnings this quarter are half of last year's total largely because its supermodels are locked out Friday, December 18 1998 By Jeff Manning of The Oregonian staff Perhaps Philip Knight could get himself appointed mediator of the acrimonious negotiations between the NBA and the players union. Knight's company, Nike Inc., Thursday laid another quarter of declining sales and earnings in part at the feet of the NBA, which has not had a season to date because of its labor dispute. In surprisingly strong language, Nike managers repeatedly referred to the lack of a National Basketball Association season as a leading factor in limp U.S. consumer demand for its sneakers and apparel.
January 7, 1999 - (press here) Nike shares rise on NBA resolution The effect on athletic footwear stocks overall, up 7.7 percent, may be mainly psychological Thursday, January 7 1999 By Julie Tripp of The Oregonian staff - Nike shares scored Wednesday with a 7.2 percent jump aided by settlement of the NBA lockout and abetted by a robust day in the stock markets. Shares of Nike -- the favored brand among NBA players -- closed at $43.625, up $2.94. Shares of Nike's competition
Jan 07, 1999 -Nike: Leading the League in Rebounds? (press here) Much was made of the jump in Nike's stock price Wednesday after the NBA lockout was settled. But Nike's stock (NYSE:NKE - news) was already on the rebound before this news, up about 30% from its $31 low. While the salvaged NBA season certainly helps Nike, it is hardly the linchpin to this company's fate... A Reuters story quotes a Reebok spokesman as saying "Quite frankly, the fashion cachet of basketball shoes has been in decline for the last 12 to 18 months," so an end to the lockout "...is not going to immediately cure what ails the industry..."
January 13, 1999 (press here) - Can Nike soar without Air on the court? Endorsers worry whether Michael Jordan has the star power to sell even in retirement Wednesday, January 13 1999 By Jeff Manning of The Oregonian staff An uncertain new era will begin today at Nike Inc. when Michael Jordan, the most effective pitchman ever to lace up a pair of sneakers, is expected to announce his retirement at a news conference in Chicago.
January 14, 1999- (press here) - Jordan, Nike linked until 2023 The sneaker giant is under contract to oversee the superstar's name brand, but it's unclear how much time he will devote to the effort after retirement Thursday, January 14 1999 By Jeff Manning of The Oregonian staff Michael Jordan has 24 years left on his Nike contract. Now the Beaverton company must figure out how to use them. As expected, Jordan, Nike's marketing silver bullet since 1984, announced his retirement Wednesday. The sneaker giant has Jordan under contract until the year 2023 (he'll be 60).
February 1, 1999- (The
Street) The stock got a lift Monday, gaining 2 7/16, or 5%,
15/16, after Bloomberg.com posted comments from Nike's Chairman and Chief Executive Philip Knight, who said earnings would improve in the fiscal year ending in May 2000.
February 10, 1999 - Nike Rediscovers Advertising By Suzanne Kapner(press here) - In the year ended May 1998 -- one of the toughest in Nike's history as sales growth slowed to 4% and earnings dropped 40%, excluding a restructuring charge -- the company spent $314 million on advertising airtime. In the current fiscal year, Nike is spending just $240 million on advertising airtime, says spokesman Lee Weinstein, who suggests that there's a potential link in the decline in ad spending and sales.
February 25, 1999 K-Swiss:
Investor Shoe-phoria! (press
here) The strong performance of K-Swiss--not just the stock, but
the company itself--is definitely impressive against the backdrop of
such a difficult environment for footwear and athletic apparel
companies in the past two years. Industry leaders like Nike (NYSE:NKE
- news) and Reebok (NYSE:RBK - news) have been absolutely devastated.
In stark contrast, K-Swiss (Nasdaq:KSWS -news) continues to rack up
amazing results and its stock is up over 400% in the past two years.
specializes in high-performance tennis shoes, just reported another
quarter a few weeks ago. The company also announced a 2-for-1 stock split and hiked its
dividend by 50%.
March 12, 1999 - Nike treads on a limb with promise of disclosure (press here) - Breaking with the industry, Chairman Phil Knight sends university presidents letters about subcontractors, with conditions on release Friday March 12, 1999 By Jeff Manning of The Oregonian staff - Nike Inc. raised the stakes Thursday in the fast-evolving debate about apparel industry working conditions. The Beaverton company broke ranks with the rest of the industry and offered to publicly disclose the names and locations of factories manufacturing collegiate licensed products. Public disclosure has become a central demand of a growing student movement protesting sweatshop conditions in some apparel factories.The industry has, until now, consistently rejected the demand arguing it would put the companies at a competitive disadvantage. But administrators at some of Nike's most important university partners, concerned about their schools' reputations, unexpectedly sided with the students. Duke, Georgetown and Princeton, among others, have officially called for full disclosure.
March 17, 1999 - Nike Colleges join effort to fight sweatshops (press here) Ivy League and other schools interested in protecting the integrity of their apparel become members of a factory-monitoring association - Wednesday March 17, 1999- From wire and staff reports - Seventeen colleges and universities, including Harvard, Yale, Princeton, Duke and Notre Dame, announced Monday that they would be the first to join a new factory-monitoring association that the White House supports in an effort to ensure that apparel carrying their names is not made in sweatshops.
March 18, 1999 - Nike Beats Estimates (press here) By Heather Moore Staff Reporter 3/18/99 8:46 PM ET Nike (NKE:NYSE) reported third-quarter earnings of 44 cents a share, 6 cents higher than the 14-analyst First Call estimate and ahead of the year-ago 25 cents. But the retailer said it's cautious about near-term growth and it posted revenue down 2% from the year-ago period. Nonetheless, the stock inched up to 55 from a close of 54 1/2 in late composite trading.
March 19, 1999 - Nike to Give Pay Raise in Indonesia (press here) - PORTLAND, OR (March 19, 1999) - Nike will increase the entry-level cash wages for its Indonesian footwear factory workers from 250,000 Rupiah (Rp) to 265,000 Rp per month. In addition, Nike also pledged to implement a new minimum monthly wage package for workers totaling 332,000 Rp, including bonuses, housing, health care, transportation and meal allowances. The new Nike wage standards are effective April 1, 1999, concurrent with an anticipated increase in the Indonesian minimum wage to 231,000 Rp monthly. Maria Eitel, Nike's vice president for corporate responsibility, revealed the details of the wage package and outlined the company's corporate responsibility agenda in a speech today to the Portland City Club.... Eitel said that Nike's decision to raise wages on April 1 was an outgrowth of research conducted by a team of graduate students and faculty from Dartmouth's Tuck School of Business, as well as input from a variety of corporate, non-governmental organization (NGO) and government data. When combined with allowances for meals, housing, health care and transportation, the new Nike minimum wage package will provide 100% of an individual worker's basic needs (including maintenance of household family members and modest savings) as determined in research conducted by both the Indonesian government and various non-governmental organizations, including Global Exchange.
May 3, 1999 (press here) - Nike Gets Cold Suzanne Kapner: I thought your article Ad It Up: Kids Still Don't Want to Be Like Nike was very good and accurate. I have a 9- and 12-year-old, and they won't wear Nike (NKE:NYSE). The 12-year-old will only wear them for gym class -- that is, if I can find a pair on sale that is comfortable on her feet. She and her friends are into all fashion shoes. Believe it or not, they are satisfied with the styles at Payless Shoes (PSS:NYSE). At $15 a pair, Mom will buy three pairs! In two months, their shoe sizes change anyway, so the more styles for the outfits the better. My daughter refuses to pay $100 for any shoes, especially with the money she earns. She feels that half the cost of the shoes will go to the already wealthy Michael Jordan. Girls are tired of wearing Nike every day. It might be a different story for the boys. Vans (VANS:Nasdaq) does have some pretty awesome styles for that Californian skateboarding crowd. We are talking about six-digit income for moms and dads. Nike is a great brand, but it has lost its total edge on the high school crowd.
May 5, 1999 (press here) - Nike Ads Don't Add Up Suzanne Kapner: In response to Ad It Up: Kids Still Don't Want to Be Like Nike, the big problem with the advertising is that it is too obscure and too cute. When was the last time you saw a Nike (NKE:NYSE) ad that said wearing branded athletic apparel was cool? You have ads with coaches wearing suits instead. If you watched the union meetings during the NBA lockout, you would have noticed that the athletes making tens of thousands of dollars in endorsements rarely ever wore Nike or Reebok (RBK:NYSE) apparel. Nike et al have lost the urban teen, who is switching direction every month. Remember Fila (FLH:NYSE)? Remember Nautica (NAUT:Nasdaq)? Remember Tommy Hilfiger (TOM:NYSE)? The only thing wrong with Nike's shoe business isthat it does nothing to make sure people think wearing a Nike branded shirt or jacket is "cool."
June 15, 1999 - (press here) - Oakley Reports Favorable Ruling On Its Patent Suit Against Nike FOOTHILL RANCH, Calif. -- Sportswear concern Oakley Inc. Monday said a federal court ruled that sports apparel giant Nike Inc. infringed on one of the company's patents on sunglass lens coatings. Officials at Nike (NKE), based in Beaverton, Ore., weren't immediately availble for comment. The suit, initially filed by Foothill Ranch, Calif.-based Oakley (OO) with the Federal District Court for the Central District of California in 1997, sought to validate Oakley's Iridium lens coating technology, which is engineeed to block glare and heighten contrast.
September 2, 1999 (press here) Copy of Nike Press Release Dissecting a Jeff Ballinger Press Release dated Sept 2nd.
REEBOK - September 9, 1999 (press
here) Market share dropping from 15% in 1998 to 10%, Reebok
cut 10% of its HQ staff and will lay off 10% of its 6000 worldwide
staff. Once neck and neck with Nike, Reebok is fighting off Adidas and
New Balance. Reebok has been troubled by marketing problems such as an
inability to maintain a brand message
that leaves consumers with a clear Reebok identity, industry observers said.
China's sportswear market - September 11, 2000 - CHINA - Li Ning Sporting Goods is the largest in China. It has 50 percent of the brand-name sportswear market share, ahead of Adidas and Nike. No longer a shoe-in in Chinese market, Nike repositions to fight domestic competition Nike’s sales in China reached about 300 million renminbi (US$36.3 million) last year, Adidas’ sales surpassed Rmb 100 million (US$12.1 million), and Li-Ning’s topped Rmb 700 million (US$84.6 million), reported the story. (2nd source).
September 16, 1999 - (press here) - After the close Nike Inc., reported fiscal first- quarter profit rose 22 percent, boosted by back-to-school sales and strong demand for its basketball shoes. Net income rose to $200.2 million, or 70 cents a share, from $163.8 million, or 56 cents, a year earlier. That beat the 66- cent average estimate of analysts polled by First Call Corp. U.S. shoe sales rose 3 percent to $941 million, as demand for basketball sneakers rebounded with the back-to-school-season. Shoppers also snapped up Nike's so-called Tuned Air shoes that claim to offer more cushioning and stability for athletes' feet.
September 16, 1999 -(press here) -Nike Beats Street Estimates but Revenue Growth Is Flat By Michael Brick - Nike (NKE:NYSE) Thursday reported first-quarter earnings of $200 million, or 70 cents a diluted share, beating the Street's estimates by 4 cents. But revenue was flat with year-ago levels, reviving questions about the company's growth prospects.
September 22, 1999 (press here) - Wednesday, September 22 Nike Labour Abuses Continue! International Humans Rights Community condemns Nike's inaction at Annual Shareholders' Meeting. Nike's refusal to end labour abuses in its suppliers' factories will be documented today in an open letter signed by more than 40 human rights and labour groups from around the world. The letter will be presented to NIKE's Annual Shareholders' meeting in Hilversum, Netherlands. -- Also (press here) Protesting shareholders refused the right to speak at the meeting. See also (press here) Four protestors arrested and a photographer injured as police and Nike security manhandle protestors.
September 22 1999 (press here). NIKE's Annual Shareholders' meeting in Hilversum,Netherlands -.CURRENTLY AT THE DEMONSTRATION AT THE NIKE STOCKHOLDERS MEETING being held outside of Amsterdam at Nike HQ: midafternoon on September 22. The police have been keeping the protesters far from the entrances where the CCC might have access to the ears of the stockholders. The police would not allow any of the protesters entrance into the meeting even though some are valid stockholders. The police have instead strong-armed the protesters. Thus far the casulaties include one injured photographer and 4 arrested protesters... --Clean Clothes Campaign reports (press here). Photos.
September 27, 1999 - Unconvincing Rebound Leaves Wall Streeters Wary By Aaron L. Task (press here) Nike (NKE:NYSE) bounced 2 9/16 to 56 3/8 after it said it will allow online sporting goods dealer Fogdog Sports to sell its full product line, reversing an earlier stance of blocking Web-only stores from selling its goods, The New York Times reported. Separately, Fogdog Sports announced its plans for a $60 million IPO.
September 29, 1999 (press here) - Court Says Nike Can't Use Brand Name In Spain From The Wall Street Journal Interactive Edition NEW YORK -- Spain's Supreme Court ruled that Nike Inc. can't use its own trade name in Spain, according to a company that won an injunction against the U.S. sporting-goods giant. Lorenzo Rosal, chairman of Cidesport, a local manufacturer and distributor of sportings goods, said Wednesday that his company won a nine-year-old lawsuit against Beaverton, Ore.-based Nike in a ruling issued Sept. 23.
October 1, 1999 - (press here) - Nike Plans To Appeal Spanish Court's Barring Of Its Trademark NEW YORK -- Nike Inc. plans to appeal the Spanish Constitutional Court's decision to bar its Nike International Ltd. unit from using its trade name on sports apparel sold in Spain.Spain's supreme court ruled that Cidesport SA, a sports-goods concern in northeastern Spain, has owned the rights to the "Nike" name on sportswear since 1932.
October 8, 1999 - Nike discloses factory locations (press here) - The company responds to universities' demands for information about where college-licensed apparel is made Friday, October 8, 1999 By Andy Dworkin of The Oregonian staff Nike Inc. on Thursday became the first large athletic apparel company to tell the public where much of its college-licensed apparel is made. The Beaverton company created a Web site in response to five universities' demands for the information. The move excited student activists working to end poor labor conditions in garment plants.(press here) for another version."Nike’s decision follows student protests on more than 100 college campuses around the country, labeled “the biggest surge in campus activism in nearly two decades” by the New York Times. Students from Duke to the University of Michigan to Berkeley have held demonstrations – from knit-ins to sit-ins—demanding that university logo apparel be produced under healthy, safe and fair working conditions. Disclosure of factory names and locations has been a key demand in all the protests."
October 28, 1999- (press here) - Clothing-maker sues Nike, Michael Jordan for trademarks Thursday, October 28, 1999 From wire reports CHICAGO -- Nike Inc. and former Chicago Bulls star Michael Jordan were sued by a maker of women's clothing who claims Nike and its Jordan products violate its long-standing trademarks. In the suit filed in federal court in Chicago, Chattanoga Manufacturing Inc. contends that the world's largest maker of athletic shoes and Jordan have infringed on its clothing line. Chattanoga has been manufacturing women's apparel under a Jordan trademark since 1980, the suit claims.
November 1999 - Survey Released - November 1999 Nike in Indonesia: (press here) "Fuck You! You Whore! You Dog!" New survey of 3,500 Nike workers finds evidence that workers are subjected to excessive punishment and extreme verbal abuse. Indonesian women making Nike clothes and shoes are subject to senseless punishments and extreme verbal abuse if they work too slowly or break other factory rules, according to a new survey of 3,500 workers just completed by the Urban Community Mission in Jakarta.The punishments include wage deductions, having their ears pulled, being pinched or slapped on the buttock, being forced to run around the factory yards or having to stand for hours in factory yards (being "dried in the sun"). The verbal abuse includes the Indonesian equivalent of phrases like "Fuck You!" "You Idiot!", You Whore! and "You Pig!".
November 3, 1999 - (press here) Goldman Cuts Nike Rating To 'Outperform' From 'Recommended List' NEW YORK -- Goldman Sachs on Wednesday lowered its rating on Nike Inc. to "outperform," from its "recommended list."The rating change on the Beaverton, Ore., sports footwear and apparel concern (NKE) was reported by CNBC.
November 19, 1999- (press here) Retuers reported that Lehman Bros reiterated their "buy" rating on Nike. They said they see the change in management as a positive for the company. It was announced yesterday that Donald Blair has joined the company as VP and CFO, Blair joins Nike after a 15 years at PepsiCo (PEP).
December 9, 1999 - (press here) - U. Iowa sweatshop activists sing carols with an attitude Updated 12:00 PM ET By Deidre Bello The Daily Iowan U. Iowa (U-WIRE) IOWA CITY, Iowa -- Students passing through the T. Anne Cleary Walkway in front of Gilmore Hall witnessed Santa Claus chuckle "ho-ho-ho" while 15 members of University of Iowa Students Against Sweatshops sang anti-sweatshop holiday carols Wednesday.
December 10, 1999 (press
here) - New York Marchers Protest Sweatshops Updated 12:41
AM ET By Jessica Hall NEW YORK (Reuters) - One week after violent
anti-trade protests in Seattle, union leaders and students marched in
a peaceful candlelight rally to urge retailers such as Nike Inc. and
Gap Inc. to end what they called child labor and sweatshop abuses....
About 1,000 students from 50 grammar schools, high schools and
universities, carrying signs that read "Gap Will I Grow Up to Be
Exploited?" or "No More Sweatshops, Shame on Nike,"
protested outside Nike's large NikeTown store and The Disney Store, as
marched along Fifth Avenue. They ended their protest at Rockefeller Center with songs and speeches.
December 15, 1999 (press here) - On December 15, 1999 Robertson Stephens analyst Alexandra Dalpan issued a 3 page Company Report on NIKE, Inc. Report highlights: 'A BUY rating was maintained. The company plans to report fiscal 2Q00 results in a few days. The company appears to have produced encouraging sales figures, despite a mixed athletic retail season.' Report No: F0116706
December 25, 1999 (press here) - Nike co-founder, inventor of the modern running shoe dies CNN.com
November 12, 2000- (CBS Market Watch) Nike's biggest competitor, Adidas-Salomon of Germany, has also lost some market share to competitors and is moving aggressively with a marketing campaign for its own new shoe - the Kobe - named after NBA star Kobe Bryant.
February 8, 2000 (press here) - Nike Stock ---> slid 19 percent on Tuesday Nike announced on Feb. 8 that it expected earnings to grow 20 percent for the year ending May 2000 and 15 percent the following year. Nike cited consolidation in the retailing industry and a strong dollar, compared with European currencies, as factors for scaled-back expectations. REUTERS
FOCUS-Nike says full-year earnings may disappoint 02/08 12:20 (Recasts, adds byline, Nike president's comments, switches dateline) By William Borden -NEW YORK, Feb 8 (Reuters) - Shares of athletic footwear and apparel giant Nike Inc. (NKE) slid 19 percent on Tuesday after the company warned its results would not meet Wall Street's estimates due to the woes of some of the industry's leading retailers (press here).February 9, 2000(press here) - RESEARCH ALERT - Salomon cuts Nike EPS estimates 02/09 08:39 -- NEW YORK, Feb 9 (Reuters) - Salomon Smith Barney said on Wednesday that it reduced earnings estimates for Nike (NKE) for this year and next and cut its 12- to 18-month price target on the stock to $50 a share from $70. Nike shares fell 2-9/16 to 34-1/8.Venator Group, which operates Foot Locker and Champs Sports stores, announced plans last month to close 385 of its 4000 stores. And Just For Feet Inc. filed for bankruptcy in November and is closing several stores.
Merrill Lynch analyst Brenda Gall lowered her intermediate-term investment rating on Nike to accumulate from buy and cut earnings estimates.
Feb 8, 000 Nike Blames the consolidation of the retail store industry (press here).
Feb 9, 2000- RESEARCH ALERT -(press
here) Nike (NKE) cut to outperform
02/09 06:12 - NEW YORK, Feb 9 (Reuters) - Morgan Stanley said Wednesday that it downgraded Nike Inc. (NKE) to outperform from strong buy.
-- Analyst Carol Pope Murray lowered earnings per share estimates for the athletic apparel and sneaker maker to $2.00 from $2.04 for the year ending May 2000 and to $2.30 from $2.40.
---NEW YORK, Feb 9 (Reuters) - Morgan Stanley said Wednesday that it downgraded Nike Inc. to outperform from strong buy.-- Further details were not immediately available. REUTERS (press here).
--NY Times - February 9, 2000 Nike's Profits Shrink as Consumer Demand Slows By LESLIE KAUFMAN Americans just are not sneaker mad like they used to be, and no amount of priming and pumping the advertising spigot by Nike can make it otherwise. (press here).
The company blamed a sharp reduction in retail square footage devoted to athletic footwear in the United States as well as unfavorable currency exchange rates with Europe for the disappointment. But industry analysts acknowledged that those issues were symptoms of a larger problem: static demand for the products the company has to offer.
"Everything that is going on tells you that it is a mature industry and it went beyond itself in terms of supplying demand," said Margaret Mager, an apparel and footwear analyst with Goldman, Sachs.
Nike's problems with shoe stores have been real. In the last several weeks alone two of the nation's largest athletic shoe chains, the Venator Group, owner of the Foot Locker and Lady Foot Locker chains, and Just For Feet Inc. have closed what could amount to hundreds of stores. Altogether, retail space for athletic footwear dropped 15 percent last year and is expected to continue to shrink, analysts said.
- Poor Mr Buffett "Mr. Buffett's Berkshire Hathaway investment company, which has special permission to delay public reporting of certain stock purchases and sales, the company loaded up on Nike's stock in early 1998, when the stock price averaged $43. Berkshire Hathaway owned 7.79 million shares at the time of the report."
Converse has filed for bankruptcy following years of poor sales andcrippling debt. The company plans to shut down its six manufacturingsites in the United States by 31 March 2001, shift production to thePouchen Corporation, and license its brand. The company failed to regainits fortunes after the acquisition of Apex One in 1995 for $US7.5bn. Thedebt was coupled with an inability to compete with Nike and Adidas inthe athletic footwear market. Shares in Converse closed at $US0.17 on 19January 2001, down 89 per cent for the year. See NikeWatch Site - http://www.caa.org.au/campaigns/nike/
REEBOK - February 1, 2001- Reebok Shares Hit Year High on Outlook Updated: Thu, Feb 01 03:12 PM EST By Tim McLaughlin BOSTON (Reuters) - Reebok International Ltd. (RBK), the world's No. 2 shoe maker, on Thursday said its profits this year could surge 25 percent after swiping rivals' market share last year with trendy brands. After posting relatively flat sales in 2000, Reebok Chief Financial Officer Ken Watchmaker said the company's sales would grow between 5 percent and 7 percent this year, excluding business with the National Football League. He also said earnings would increase between 15 percent and 25 percent. That outlook sent Reebok shares up 9 percent to $29.85 -- a year high -- in Thursday afternoon trading on the New York Stock exchange, as analysts expected the company to get a quick start this year. Reebok's shares, which have climbed nearly 250 percent during the past year, was last up $1.78 at $29.02.
February 27, 2001- The New York Times - By JOHN SCHWARTZ - CEO Knight: "because of weakness in our U.S. footwear revenues," Profit Warning at Nike Nike said yesterday that its third-quarter profit would fall short of forecasts because of problems with an inventory system that led to shortages and late deliveries. One analyst said that the news hit especially hard because Nike seemed to be rebounding from a dreary spell. "What's so disappointing is that Nike is making headway on the product front," said Carol A. Murray of Salomon Smith Barney. The new shoes "had started to create some excitement in the category again."
REEBOK - February 27, 2001 - Boston Globe Celebs back human rights Art-rocker Peter Gabriel and tennis ace Venus Williams will host the annual Reebok Human Rights Awards ceremony March 21 at Northeastern's Blackman Auditorium. They will salute Heather Barr, a New York lawyer and advocate for the mentally ill; William Coley, an advocate for refugees seeking political asylum in the United States; Kodjo Djissenou, a youth organizer campaigning for democracy in Togo; and Endungi Githuku, an artist using his plays and poetry to teach Kenyans about human rights. Reebok, based in Canton, will give $50,000 to each winner for donation to the organization of his or her choice. More human rights-loving celebs to be announced.
REEBOK - February 27, 2001 - (U.S. State Department) - Mentioning a Reebok subcontract dispute with workers - "Representatives of 4,700 footwear workers, who did not receive severance pay when their factory closed, staged a sit-in for several weeks in the national Parliament until the company paid the severances... In addition to normal work stoppages, workers occasionally used unorthodox tactics, such as blocking Jakarta's airport toll road. Representatives of 4,700 footwear workers, who did not receive severance pay when their factory closed, staged a sit-in for several weeks in the national Parliament until the company paid the severances.
Find the non-disclosed locations of Nike factories. Where
are the secret Nike factories? As
soon as we systematically identify where they are, we can
monitor what they are doing.
NEW We also want to find comparable (non-Nike) factories where working conditions are better. For example, What are the condition of factories where New Mexico State University Campus Story buys its garments with our logo on them?
Contact email@example.com at Academics Studying Nike, if you know where they are.
El Salvador, Guatemala
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