Nike reported a jump in quarterly earnings Thursday, as sales increases in China and the US and made up for higher marketing costs. The sports apparel and footwear giant also became the latest big company to unveil a large new share repurchase program in the wake of the US corporate tax cuts.
Nike reported earnings of $1.1 billion in its fiscal fourth quarter, up 12.8 percent from the year-ago period. Revenues also rose 12.8 percent to $9.8 billion. The company bested analyst expectations in both earnings per share and revenues.
China was the company's strongest region in terms of revenue gains, where sales jumped 35 percent. Sales in North America rose by a more modest three percent, but that was still an improvement after the decline in the prior quarter. Revenues in Nike's home region have been pressured by store liquidations and retailer turmoil that had led to a glut of apparel and shoes on the market. Retail analysts say market conditions have improved of late. Nike has also bolstered its direct selling initiatives, while spending more on sports marketing and product launches.
The company also announced a new $15 billion share repurchase program in the wake of US tax reform in December that has resulted in a much lower tax rate.
Shares of Dow member Nike surged 6.7 percent to $76.48 in after-hours trading.