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Nike Delivers Earnings Beat, Announces Stock Buyback

Nikereported quarterly earnings thatbeat analysts' expectations and announced a stock buyback.

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The sneaker seller delivered third-quarter earnings excluding items of $1.20 per share, up from $1.08 per share in the year-earlier period.

Net income increased 7 percent to $560 million from $523 million a year ago.

Revenue rose 14 percent to $5.8 billion from $5.08 billion.

Analysts had expected the company to report earnings excluding items of $1.17 per share on revenue of $5.82 billion.

In the third quarter, gross margin fell 2 percentage points, mostly due to higher product costs, though that was better than the 2.6 percentage point drop in the second quarter.

The company also announced plans to buy back 2.5 million shares for $239 million in the third quarter.

World-wide futures orders for the Nike brand, a closely-watched measure of demand in coming months, jumped 15 percent to $9.4 billion.

"The environment remains volatile, but I'm optimistic about the future. We're starting a great season of major sports events and we have a pipeline full of innovation to fuel growth over the long term," Nike CEO Mark Parker said in a statement on Thursday.

The Olympics this year and the next soccer World Cup in Brazil are events the company says it is preparing for.

Nike shares have risen more than 20 percent in the past year and hit an all-time high on Monday. Click here for the latest after-hours quote.

— Reuters contributed to this report.

Correction:
An earlier version of this story said the company's new line of Air Jordans, "can collect data from an athlete's movements, which are transferable to mobile devices." In fact, the name of the product with this capability is the "Nike Hyperdunk+," which is not part of the Air Jordan line.

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