NIKE TAKES A STEP BACK: NOT LIKELY TO MEET $$ EXPECTATIONS

          Nike "warned" yesterday that it "would miss earnings
     forecasts" in 2000 and 2001, according to Leslie Kaufman of
     the N.Y. TIMES, who writes that Nike "blamed a sharp
     reduction in retail square footage devoted to athletic
     footwear in the [U.S.] as well as unfavorable currency
     exchange rates" with Europe for the drop.  Nike said that
     earnings for the FY ending May 31 "would be slightly less"
     than the $2.08 per share expected by First Call/Thomson
     Financial analysts.  Nike also said that next year's
     earnings "would grow" by less than the 20% analysts had
     expected.  Goldman, Sachs analyst Margaret Mager, on Nike's
     financials: "Everything that is going on tells you that it
     is a mature industry and it went beyond itself in terms of
     supplying demand."  Bank of America securities analyst Susan
     Silverstein added that Nike's stock was "pummeled" yesterday
     because at a meeting with analysts, company management
     offered "no peg or strategy for new growth" (N.Y. TIMES,
     2/9).  On the NYSE yesterday, Nike shares fell 8 3/4 to
     close at 36 1/2 (THE DAILY).  The WALL STREET JOURNAL's Lee
     Gomes notes that for FY '99, Nike reported earnings of
     $478.7M, or $1.66 per share (WALL STREET JOURNAL, 2/9). 
     Nike sales fell 8.1% last year as people "switched to
     dressier styles and stores cut prices to clear out" Nike's
     surplus sneakers, sweatpants and T-shirts (AP, 2/9).
          MORE REAX: Bear Stearns' Dana Telsey: "Basically, what
     we've seen is square footage is coming out of marketplace. 
     Given the liquidation of the Just For Feet stores and ...
     Venator closing some more stores.  There [aren't] as many
     resources for Nike to sell to.  As a result, they're having
     to go to department stores and other channels of
     distribution that they normally did not sell to" ("Market
     Wrap," CNBC, 2/8).  Thomas Weisel Partners analyst Faye
     Landes: "Something like this can never be construed as good
     news.  Nike is out there winning the battles and winning the
     wars, but who cares?  It's not providing the robust growth
     we'd all like to see" (CNNfn.com, 2/8).  Federated Investors
     analyst Angela Auchey: "We think Nike does have the best
     brand in the industry and when there's recovery, they'll be
     the first to recover" ("Business Center," CNBC, 2/8).
          KNIGHT MOVES: CNN's Susan Lisovicz reported that Nike
     CEO Phil Knight, in response to the earnings shortfall,
     said, "The company needs to streamline its expanding apparel
     business in order to compete more effectively against such
     rivals as Nautica and The Gap, especially since the company
     now projects a slowdown in its core U.S. footwear business
     through next year" ("Moneyline," CNNfn, 2/8).