Nike Beats Q4 Expectations, Shares Rise

Shares of

gained around 2.5 percent in after-hours trading after the company reported stronger-than-expected results for its fiscal fourth quarter. The Beaverton, Oregon-based company posted quarterly earnings of $865 million, or $0.98 per share, compared to $698 million, or $0.78 per share, in the year-ago period. Its revenue gained 5 percent year-over-year to $7.8 billion, while revenue surged 13 percent on a currency-neutral basis. Analysts were expecting earnings of $0.83 per share on revenue of $7.69 billion. The average estimate among 74 Estimize users was for earnings of $0.88 per share and revenue of $7.77 billion. Revenue for the NIKE Brand surged 13 percent on a currency-neutral basis to $7.4 billion, while revenues for Converse rose 14 percent on a currency-neutral basis to $435 million. Gross margin widened 60 basis points to 46.2 percent in the latest quarter. Selling and administrative expense rose 6 percent to $2.6 billion. During the fourth quarter, the company repurchased a total of 6.8 million shares for around $678 million. As of the end of the fourth quarter, worldwide futures orders for NIKE Brand athletic footwear and apparel scheduled for delivery from June through November 2015 rose 2 percent year-over-year to $13.5 billion. At May 31. 2015, inventories for NIKE totaled $4.3 billion, up 10 percent compared to May 31, 2014. The company had cash and short-term investments of $5.9 billion on May 31, 2015. "Fiscal 2015 was an outstanding year for NIKE," said Mark Parker, President and CEO, NIKE, Inc. "Our consistent growth is fueled by our connection to the consumer and our ability to deliver innovation at an unprecedented pace and scale. At no time in our history has the growth potential been greater for NIKE." Nike shares gained 2.54 percent to $107.89 in the after-hours trading session.