Nike 4th quarter profit tops forecasts
Nike Inc. shares have jumped in after-market trading after the US sneaker giant posted better-than-expected results.
The Beaverton, Oregon-based company said on Thursday it earned $US1.14 billion, or 69 US cents per share, in its fiscal fourth quarter. Revenue was $US9.79 billion, a 13 per cent rise over the same period a year earlier.
The results surpassed Wall Street expectations. Analysts surveyed by Zacks Investment Research forecast earnings of 64 US cents per share and revenue of $US9.39 billion.
Revenue for the Nike brand was up nine per cent to $US9.3 billion in the quarter that ended May 31. But Converse brand sales slumped 14 per cent to $US512 million as growth in Asia was more than offset by declines elsewhere.
The athletic apparel maker also unveiled a $US15 billion share buyback plan that will kick in during the current fiscal year after a $US12 billion plan now in effect is completed.
Nike shares rallied nearly 10 per cent in extended trading following the releases of the earnings report. As of the close of regular-session trading Thursday, the stock was up almost 15 per cent for 2018 and more than 34 per cent in the past year.