Nike Wins Big With Q4 Earnings

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When Nike Inc. (NYSE: NKE) reported its fiscal fourth-quarter financial results after the markets closed on Thursday, the apparel giant posted $0.60 in earnings per share (EPS) and $8.68 billion in revenue. That compares to consensus estimates from Thomson Reuters that called for $0.50 in EPS and revenue of $8.63 billion. In the same period of last year, Nike posted EPS of $0.49 and $8.24 billion in revenue.

In terms of the revenue breakdown, the Nike Brand revenue was up 7% at $8.1 billion and the Converse Brand revenues were up 10% at $554 million. The business segments within the Nike brand reported:

  • Footwear revenues totaled $5.47 billion, up 8% from last year.
  • Apparel revenues were $2.30 billion, an increase of 3%.
  • Equipment revenues were $335 million, a decrease of 14%.

During the fourth quarter, Nike repurchased a total of 14.9 million shares for roughly $820 million as part of the four-year, $12 billion program approved by the board of directors in November 2015. At the end of this quarter, a total $4.4 billion had been repurchased under this program.

On the books, Nike’s cash, cash equivalents and short-term investments totaled $6.2 billion at the end of the quarter, up from $5.4 billion at the end of the same period last year.

Chairman, President and CEO Mark Parker commented:

NIKE continues to create both near-term wins in today’s dynamic environment and a lasting foundation for future growth. Through our Consumer Direct Offense, we’re putting even more firepower behind our greatest opportunities in Fiscal 2018. It will be a big year for NIKE innovation and we’ll bring those stories to life through deeper consumer connections in our key cities around the world.

Shares of Nike closed Thursday at $53.17, with a consensus analyst price target of $60.59 and a 52-week range of $49.01 to $60.33. Following the release, the stock was up 6.6% at $56.70 in early trading indications Friday.