- Nike topped analysts’ expectations for its fiscal-fourth-quarter earnings and revenue.
- The results were lifted by new-product launches and a return to sales growth in North America after three straight quarters of declines.
- The company also announced a $US15 billion buyback program of its class B shares to be completed over four years.
- Nike shares gained as much as 10% in premarket trading.
Nike on Thursday reported fiscal-fourth-quarter earnings that beat analysts’ forecasts, as it ended a three-quarter streak of revenue losses in North America.
The apparel giant posted $US0.69 in adjusted earnings per share, and revenue growth of 13% to $US9.8 billion.
Nike announced plans to repurchase $US15 billion of its class B shares over four years and expects to start in 2019 when its current buyback program is complete.
Nike’s newly released footwear including the Air VaporMax Flyknit and Air Max 270 were well received by retailers including Foot Locker, according to the Telsey Advisory Group. Also, analysts at Susquehanna said recent channel checks showed these new products retailed well, according to Bloomberg.
“Our new innovation is winning with consumers, driving significant momentum in our international geographies and a return to growth in North America,” Mark Parker, Nike’s CEO, said in the earnings statement. The company also recorded revenue growth in Europe and the Middle East, with the strongest performance in China.
Global footwear revenue grew 12% to $US6.14 billion, the company reported. North American revenue increased by 3% to $US3.88 billion, ending three straight quarters of losses.
Analysts had forecast that Nike earned $US0.64 in adjusted EPS, according to Bloomberg. Revenue was expected to grow 8% to $US9.41 billion. In March, the company forecast revenue growth in the high-single-digit range.
Nike shares gained 10% in premarket trading. They rallied 15% this year through the market close on Thursday.