In a bid to enhance shareholders' value,
) recently announced that its Board of Directors has agreed to
enhance its share repurchase program. Under the new authorization,
the company will repurchase $8 billion worth of its Class B common
stock over a period of four years. As of August 31, 2012, Nike had
nearly 361 million shares of Class B common stock.
Currently, the company is on the verge of completing its ongoing
$5 billion share repurchase program, which was authorized in
September 2008. The company's decision to increase its share
repurchases authorization clearly suggests its ability to generate
liquidity and its potential to improve in the long run.
Nike has always been improvising its shareholders' wealth
through share repurchase and dividend policies. It has repurchased
approximately 167 million shares and returned more than $10 billion
to its shareholders over the past ten years.
Nike, which competes with
Brown Shoe Company Inc.
), has been actively managing its cash flows by generating healthy
free cash, making prudent capital investments and enhancing
shareholders' return. The company repurchased shares worth of $245
million in the fourth quarter of fiscal 2012 and ended with cash
and cash equivalents of $2,317 million.
Further, Nike is going to report its first quarter fiscal 2013
results on September 27, 2012. The current Zacks Consensus
Estimated earnings and sales for the quarter stand at $1.12 per
share and $6,425 million, respectively.
Nike is the industry leader in the U.S. footwear and athletic
apparel industry. In an attempt to expand its global reach and
market share, it is aggressively expanding its operations in the
emerging markets while focusing on direct-to-consumer business and
other brands, which augur well for future operating performance. In
fiscal year 2012, Nike showed significant strength by innovating
its products and services that helped boost its top lines.
Moreover, the company's near-to-debt free balance sheet offers
financial flexibility driving future growth.
Currently, Nike maintains a Zacks #2 Rank, which translates into
a short-term Buy rating.
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BROWN SHOE CO (BWS): Free Stock Analysis Report
NIKE INC-B (NKE): Free Stock Analysis Report
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