Nike Inc. (NYSE: NKE) reported fourth-quarter and full-year fiscal 2014 earnings after markets closed Thursday. The athletic gear company reported diluted earnings per share (EPS) of $0.78 on revenue of $7.4 billion. In the same period a year ago, the company reported EPS of $0.76 on revenue of $6.7 billion. Fourth-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.75 and $7.34 billion in revenue.

For the full fiscal year, Nike reported EPS of $2.97 on revenues of $27.8 billion compared with year-ago EPS of $2.69 on revenues of $6.7 billion.

Nike did not offer guidance in its press release, but did say that orders for delivery between June and November total $13.3 billion, up 11% over a the same period a year ago. The consensus first fiscal quarter estimates call for EPS of $0.91 on revenues of $7.64 billion. For the 2015 fiscal year analysts expect EPS of $3.37 on revenues of $30.09 billion.

Gross margins rose to 44.8%, up 1.2% year-over-year for the full year and gross margin in the fourth quarter rose to 45.6%, up 1.7% from the same period a year ago. Nike attributed the gains to higher sales prices and continued sales in its higher margin direct-to-consumer business.

Nike attributes its 3% EPS increase to fewer shares outstanding, and notes that the company repurchased 12.3 million shares for approximately $912 million in the fourth quarter. Over the full year Nike’s share buybacks get the credit for the 11% gain in per share earnings.

Nike’s shares are up nearly 24% over the past 12 months, but year-to-date the stock has dropped about 2.3%. Depending on stock buybacks to post a profit hardly seems like a long-term strategy for growth. And expenses are rising as fast as sales, so growth in gross margin is being eaten up by SG&A expenses.

Shares got a solid boost in after-hours trading Thursday, up nearly 3% at $78.96 in the stock’s 52-week range of $60.18 to $80.26. Thomson Reuters had a consensus analyst price target of around $82.80 before the results were announced.

ALSO READ: Nike Launches Eco-Friendly Line of Clothes

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