Nike Q4 results: ‘the report is quite messy’

Nike Inc (NYSE: NKE) reported better-than-expected results for its fiscal fourth quarter on Monday. Shares are trading up after-hours.

Notable figures in Nike Q4 financials results

• Net income printed at $1.4 billion versus the year-ago figure of $1.5 billion
• 90 cents per-share earnings were below 93 cents in Q4 of the previous year
• Revenue went up 1.0% YoY to $12.2 billion, as per the earnings press release
• FactSet consensus was for 81 cents a share of EPS on $12.1 billion in sales
• Sales and administrative expenses were 8.0% higher in the recent fiscal quarter

Nike, however, reported an 80 basis points hit to its gross margin that stood at 45%. Discussing the earnings report on CNBC’s “Closing Bell: Overtime”, Oppenheimer’s Brian Nagel said:

Nike announces an $18 billion buyback programme

According to the sports apparel and footwear company, its investments in DTC resulted in an 8.0% increase in overhead costs as well in Q4.

The Board at Nike Inc authorised a four-year stock repurchase programme worth $18 billion on Monday. It will replace the current $15 billion buyback that ends in FY23. Nagel added:

The Oppenheimer analyst dubs the stock “attractive” at current valuation and is not sold on the idea that the U.S. economy is headed for a recession. He, therefore, rates Nike at “outperform” and sees upside to $195 – a close to 80% increase from here.