Nike Inc. (NKE) shares bounced in after-market trading Thursday, June 28, when it reported fourth-quarter financial results that topped analysts' estimate on both the top and bottom line.
Shares were up 6.4% after the bell to $76.31. Nike stock added 0.4% to $71.70 during the trading day.
The Beaverton, Ore.-based sneaker and apparel company reported earnings per share of 69 cents for its fiscal fourth quarter, which ended May 31, beating the consensus estimate by 5 cents. Nike in a statement attributed the positive result primarily 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 expenses.
Revenue rose 13% to $9.8 billion, up 8% on a currency-neutral basis. The number was driven by double-digit increases to Nike Direct, its direct-to-consumer unit; international geographies; sportswear; global football; and growth in North America. The revenue figure also beat the consensus estimate of $9.4 billion.
Nike on Thursday also announced a new four-year $15 billion program to repurchase Class B common stock. The buyback will begin after the company finishes a $12 billion repurchase program, which it said it anticipated completing in fiscal 2019, or next May.
For the full year, revenue rose 6% to $35 billion, up 4% on a currency-neutral basis. Gross margins fell 80 basis points to 44%, driven by 90 basis points of unfavorable changes in foreign exchange currency rates.