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Non-Tech : Nike -- Ignore unavailable to you. Want to Upgrade?

To: Glenn D. Rudolph who wrote (2306)	2/18/1999 9:11:00 AM
From: Duker	Read Replies (1) \| Respond to of 2403

Nike Boosts Advertising Budget 46% For Fiscal 2000 BEAVERTON, Ore. (AP)--Nike Inc. (NKE) plans to boost its fiscal 2000 ad budget by nearly 46%, hoping that a new wave of ads could rejuvenate its sales, which have suffered along with the entire athletic shoe and apparel industry. Nike slashed its 1999 ad budget to $240 million, compared to $314 million in fiscal 1998, as part of a companywide cost-cutting move that included layoffs, closing offices and reducing athlete endorsement spending. In 2000, the company will spend $350 million on advertising, officials said. Wall Street praised the move, which pared Nike's annual expenses from $2.8 billion in fiscal 1998 to $2.4 billion this year. But Nike officials now say the advertising cuts may have been a mistake, reducing the company's visibility when a high profile was more important than ever. The company has struggled in the past year amid the Asian financial crisis, the National Basketball Association strike, and fashion trends that turned young customers away from sports sneakers and toward hiking boots and other casual shoes. In its most recent fiscal quarter, Nike earned $68.9 million, or 24 cents per diluted share, compared to $141.1 million or 48 cents per diluted share in the year-ago quarter. Sagging domestic sales caused overall revenue to drop 15%, to $1.91 billion, compared to $2.26 billion in the previous year. The spending increase is good news for Nike's two ad agencies, Portland-based Wieden & Kennedy and Goodby Silverstein & Partners. Wieden & Kennedy laid off 37 employees last summer, a move it blamed on lower spending by Nike, its largest client.