What happened
Shares of Nike Inc. (NKE +0.53%) were up 9% as of 12:15 p.m. EDT Friday after the company announced strong fiscal fourth-quarter 2017 results.
So what
Nike's quarterly revenue climbed 5.3% year over year (7% at constant currency) to $8.7 billion, with growth in NIKE Brand revenue led by strength in the sportswear and running categories. That translated to 19.1% growth in net income to $1 billion, and -- helped by stock repurchases over the past year, including 14.9 million shares bought back and retired for $820 million this quarter -- 22.4% growth in net income per diluted share to $0.60. Both the top and bottom lines were well above the market's expectations for revenue of $8.63 billion and earnings of $0.50 per share.
Image source: Nike via Businesswire.
Now what
"NIKE continues to create both near-term wins in today's dynamic environment and a lasting foundation for future growth," added Nike Chairman and CEO, Mark Parker. "It will be a big year for NIKE innovation and we'll bring those stories to life through deeper consumer connections in our key cities around the world."
Looking forward to the full year, Nike anticipates currency-neutral revenue growth in the mid- to high-single-digit range, with growth in all geographies led by continued strength internationally.
Given Nike's relative outperformance this quarter and its encouraging outlook despite today's tough retail environment, it's hard to blame investors for bidding up Nike stock to near its one-year high today.
