Nike, Inc. (NYSE: NKE) shares jumped on Friday after the company reported fourth-quarter earnings that top analysts’ estimates and confirmed a pilot program with Amazon.com, Inc. (NASDAQ: AMZN)
The athletic brand said adjusted earnings was 60 cents per share in the fourth quarter, beating analysts’ estimates of 50 cents, according to Thomson Reuters. Revenue rose 5 percent to $8.68 billion, also topping a forecast of 8.63 billion.
The company said the increase in net income is due to lower selling and administrative expenses. Early this month, Nike announced to cut approximately 2 percent of the company’s global workforce, which is about 1,400 employees.
Nike now expects revenue to increase by a mid-to-high single digit percentage in fiscal 2018
“NIKE continues to create both near-term wins in today’s dynamic environment and a lasting foundation for future growth,” said Mark Parker, Chairman, President and CEO, NIKE, Inc. “Through our Consumer Direct Offense, we’re putting even more firepower behind our greatest opportunities in Fiscal 2018. 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.”
Nike shares jump as much as 8.9 percent to $57.88 in the early trading in New York.
On the conference call, Nike confirmed a plan to directly sell a limited product assortment on Amazon's U.S. e-commerce platform Amazon. The offerings will include athletic footwear, apparel and accessories.