NIKE, Inc. (NYSE: NKE)
Shares of Nike climbed above 9% in the after-hours session on Thursday, after the sportswear company ended a string of declines that have affected its performance since last year.
The earnings come several months after an internal turmoil struck the company, following complaints of a toxic work environment from female employees.
The revelations led to the departure of several executives, including Trevor Edwards, who was highly regarded as potential successor to the current CEO.
However, Nike was able to perform well, and even raised its fiscal 2019 first quarter guidance.
The company also announced $15 billion share buyback program that it hopes to complete in calendar 2019. NKE stock has surged almost 15% since the beginning of the year.
NKE Earnings & Outlook
The company reported a net income of $1.14 billion, or $0.69 per share. In the same period last year, Nike had a net income of $1.01 billion, or $0.60 per share.
Total revenue was $9.8 billion, up 13% from $8.68 billion, in the fourth quarter of fiscal 2017. Analysts had expected earnings of $0.64 share on sales of $9.41 billion, according to Thompson Reuters.
Nike updated its revenue growth guidance to the high-single-digit range, compared with the earlier range of mid-to-high single-digit.
Analysts expect the company to report earnings of $0.64 per share on sales of $9.78 billion in the first quarter of fiscal 2019.
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Nike CEO Comments
“Our new innovation is winning with consumers, driving significant momentum in our international geographies and a return to growth in North America. 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,” said Mark Parker, Nike Chairman and Chief Executive Officer.
NIKE, Inc. Company Profile
Nike is involved in the design, development, marketing, and sale of athletic apparel, footwear, accessories, and equipment internationally.
The company provides NIKE brand products in the following categories: action sports, the Jordan brand, running, women’s training, men’s training, NIKE basketball, golf, sportswear, and football.
In addition, it markets products for other recreational and athletic uses, including wrestling, volleyball, cricket, walking, tennis, lacrosse, and volleyball.
It also markets a line of performance equipment, such as socks, bags, timepieces, bats, sport balls, digital devices, protective equipment, eyewear, and gloves.
The company sells its products under several trademark names, including NIKE, Jumpman, Hurley, Converse, One Star, Chuck Taylor, Jack Purcell, All Star, and Star Chevron.
It also licenses agreements that allow third parties to make and sell digital devices, apparel, and other equipment for sporting activities under its trademarks. NIKE sells its products to sporting goods chains, footwear stores, department stores, athletic specialty stores, golf, skate, and tennis shops.
Customers can also buy NIKE products from its own retail stores and mobile applications, websites, and independent distributors.
The company was founded in 1964 by Philip H. Knight and William Jay Bowerman. Its headquarters are based in Beaverton, Oregon. –Reuters