NIKE, Inc (NYSE: NKE) shares hiked after the company reported stronger-than-expected results for its fourth quarter and announced a new share buyback plan.
The "Just-do-it" company, based in Beaverton, Oregon, announced fourth-quarter revenue increased 13% to $9.8 billion driven by strong double-digit revenue growth in international markets and NIKE Direct globally, and a return to growth in North America.
Diluted earnings per share for the fourth quarter rose 15% to $0.69, primarily due to strong revenue growth, gross margin expansion, a lower tax rate and a lower average share count, which were partially offset by higher selling and administrative expense.
Net income increased 13% to $1.1 billion primarily due to strong global revenue growth, gross margin expansion and a lower tax rate, which were partially offset by higher selling and administrative expense.
Nike CEO Mark Parker said, "Fueled by a complete digital transformation of our company end-to-end, this year set the foundation for NIKE’s next wave of long-term, sustainable growth and profitability."
The Company also announced that its Board of Directors has authorized a new four-year, $15-billion program to repurchase shares of NIKE’s Class B Common Stock. The Company anticipates that the current $12 billion share repurchase program will be completed within fiscal 2019, and the new program will commence upon the completion of the current program.
Nike 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.
Shares galloped $9.06, or 12.6%, to $80.76 Friday morning
