The sneaker giant Nike (NYSE: NKE) delivered better-than-expected financial results for the fourth quarter on Monday after market close. Revenue and earnings came in above consensus estimates driven by solid demand for its athletic apparel and sneakers in Europe. Nike also announced a new $18 billion class B stock repurchase plan.
Earnings per share (EPS): $0.90 vs. $0.82 expected
Revenue: $12.23 billion vs. $12.06 billion expected
“Nike’s results this fiscal year are a testament to the unmatched strength of our brands and our deep connection with consumers," Nike CEO, John Donahoe said. “Our competitive advantages, including our pipeline of innovative product and expanding digital leadership, prove that our strategy is working as we create value through our relentless drive to serve the future of sport.” – he added.
Nike said the China division saw a decline in the fourth quarter. Sales in China slid 19 percent to $1.6 billion in the fiscal Q4 ended May 31, with a 39 percent drop in the apparel part of the business. "We are taking a cautious approach to Greater China, given the uncertainty around additional COVID disruptions," Nike CFO, Matthew Friend said.
Meanwhile, the Nike stock fell almost 3% in pre-market trading on Tuesday despite the release of better-than-expected Q4 results. The stock initially gained 2% after the earnings announcement but later the stock slipped after the company revealed weaker-than-expected revenue guidance.
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