NIKE, Inc. Announces New $12 Billion Share Repurchase Program, 14 Percent Increase in Quarterly Dividend, & Two-for-One Stock...
November 19 2015 - 4:15PM
Business Wire
NIKE, Inc. (NYSE:NKE) announced today that its Board of
Directors approved a new four-year, $12 billion program to
repurchase shares of NIKE’s Class B Common Stock. The Company
anticipates that the current $8 billion share repurchase program
will be completed before the end of fiscal 2016, and the new
program will commence upon the completion of the current
program.*
Repurchases under the Company’s new program will be made in open
market or privately negotiated transactions in compliance with
Securities and Exchange Commission Rule 10b-18, subject to market
conditions, applicable legal requirements, and other relevant
factors. This share repurchase plan does not obligate the Company
to acquire any particular amount of common stock, and it may be
suspended at any time at the Company’s discretion. NIKE had
approximately 678 million shares of Class B Common Stock
outstanding as of November 16, 2015.
“In a growing sports industry, NIKE is the clear leader,” said
Mark Parker, President and CEO of NIKE, Inc. “We are built for
growth, while also staying committed to creating shareholder value
over the long term. We’ve proven it time and again, having returned
over $23 billion to shareholders over the last 14 years through
share repurchases and dividends. Moving forward, we see even
greater potential for NIKE as we continue to unlock new markets,
new experiences and new products.”*
The Board of Directors also declared a quarterly cash dividend
on the Company’s outstanding Class A and Class B Common Stock of
$0.32 per share, on a pre-split basis, payable on January 4, 2016
to shareholders of record at the close of business on December 9,
2015. The dividend represents a 14 percent increase over the
previous pre-split quarterly rate of $0.28 per share. This is the
fourteenth year in a row the Company has increased its annual
dividend, over which time the dividend has increased by a factor of
more than 10.
The Board of Directors also approved a two-for-one split of both
NIKE’s Class A and Class B Common shares. The stock split will be
in the form of a 100 percent stock dividend payable on December 23,
2015 to shareholders of record at the close of business December 9,
2015.
Upon completion of the split, the outstanding shares of NIKE’s
Class A and Class B Common Stock will increase to approximately 353
million and 1.36 billion, respectively, based on the outstanding
shares as of November 16, 2015. The Company expects its common
stock to begin trading at the split-adjusted price on December 24,
2015.
About NIKE, Inc.
NIKE, Inc., based near Beaverton, Oregon, is the world’s
leading designer, marketer and distributor of authentic athletic
footwear, apparel, equipment and accessories for a wide variety of
sports and fitness activities. Wholly-owned NIKE,
Inc. subsidiary brands include Converse, which designs,
distributes and licenses casual sneakers, apparel and accessories;
and Hurley, which designs and distributes a line of action sports
and youth lifestyle apparel and accessories. For more
information, NIKE’s earnings releases and other financial
information are available at http://investors.nike.com. Individuals
can also visit http://news.nike.com/ and follow @Nike.
* This press release contains forward-looking statements
that involve risks and uncertainties that could cause actual
results to differ materially. These risks and uncertainties are
detailed from time to time in reports filed by NIKE,
Inc. with the Securities and Exchange Commission,
including Forms 8-K, 10-Q, and 10-K.
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version on businesswire.com: http://www.businesswire.com/news/home/20151119006678/en/
NIKE, Inc.Investor Contact:Kelley
Hall, 503-532-3793orMedia
Contact:Kellie Leonard, 503-671-6171
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