Nike beat analysts’ expectations for the fiscal-fourth-quarter earnings.
Revenue in the fourth quarter increased by 13 percent to $9.8 billion following a “return to growth in North America.”
“Our new innovation is winning with consumers, driving significant momentum in our international geographies and a return to growth in North America,” said Mark Parker, Chairman, President and CEO, NIKE, Inc.
“Fueled by a complete digital transformation of our company end-to-end, this year set the foundation for Nike’s next wave of long-term, sustainable growth and profitability,” he added.
Total sales surpassed the $9.4 billion expected by analysts. According to Nike, digital business alone was up 41 percent during the quarter.
Footwear sales were up by eight percent. Apparel sales jumped 15 percent, while equipment sales fell by 3 percent.
The focus on growth in the US was fuelled by the retailer’s increased focus on women’s footwear and clothing as well as partnering with subscription service, Stitch Fix.
Following the results, shares in the sports retailer jumped nine percent in after-hours trading (NYSE: NKE).
The company has also announced a $15 billion share repurchase program. IT expects to complete the program in 2019.
The retail giant has recently been caught up in the #MeToo movement. The company has seen several senior male employees abruptly leave the company.
Stifel analyst Jim Duffy said: “We are encouraged that the Company is embracing change; both culturally and with progressive go to market strategies.”
“Against this backdrop, we expect the Company shows strong evidence of firming fundamentals that make more tangible capacity for the long-term objective high-single digit revenue growth and mid-teens EPS growth.”