Nike Inc. late Monday reported quarterly earnings above Wall Street expectations and said its board approved a new, $18 billion share buyback program, sending the apparel maker’s shares higher in the after-hours session.
Nike
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said it earned $1.4 billion, or 90 cents a share, in the fiscal fourth quarter, compared with $1.5 billion, or 93 cents a share, in the year-ago period.
Revenue fell 1% to $12.2 billion, the company said.
FactSet consensus called for earnings of 81 cents a share on sales of $12.1 billion.
Nike’s board authorized a four-year, $18 billion buyback program, which will replace Nike’s current $15 billion share-repurchase program that ends in fiscal year 2023.
Nike’s sales and administrative expenses rose 8% to $4 billion in the quarter, the company said. Overhead expenses also rose 8% to $3 billion, mostly due to the company’s investments in its direct sales channel.
Nike shares have lost about 34% so far this year, compared with losses of around 18% for the S&P 500 index
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This post was originally published on Market Watch
