This move follows a $5 billion stock-repurchasing program that was announced in 2008 and that is set to be completed in the second quarter of FYF 13. The new buyback will start following the completion of the current program. Nike has returned $10 billion to shareholders through buybacks of more than 167 million shares over the past decade, with around 361 million shares of class B stock available as of Aug. 31.
"This new share repurchase program demonstrates our continued confidence in Nike's strategy to generate long-term profitable growth and strong cash flow, and reflects our commitment to delivering value to our shareholders," said Nike CEO and President Mark Parker.
Parker, who joined Nike as one of its first footwear designers in 1979, took over as CEO in 2006, leading the sporting goods maker in doubling its share price since then. The current stock repurchasing has coincided with a massive run-up in share price since 2008.
Nike's last quarterly report wasn't pretty; revenue increased, but gross margin and net income decreased. It's got first-quarter results scheduled for Sept. 27.