Nike Inc. is bullish about athletic footwear and apparel stocks — its own, that is. The Beaverton, Ore.-based athleticwear giant said it would continue to buy back its own shares and put a new four-year, $5 billion program in place to purchase Class B common stock. The initiative will take over when the current $3 billion share repurchase program, approved in June 2006, is wrapped up. As of July 28, when Nike filed its annual report with the Securities and Exchange Commission, the firm had repurchased 38.6 million of its shares for $2.1 billion. The authorization will end once the $3 billion is spent or it expires in June 2010. “Over the past 10 years, Nike has returned $5.5 billion to shareholders through the repurchase of more than 157 million shares,” said Mark Parker, president and chief executive officer. “This new share repurchase program demonstrates our continued confidence in Nike’s long-term growth prospects and financial strength.” At the end of August, Nike had about 492.4 million Class B shares outstanding. Analysts praised the buyback program, particularly given the tumult on Wall Street. “This could be a big catalyst for the stock in this environment,” Citigroup analyst Kate McShane said. “It demonstrates the strength of Nike’s balance sheet, the confidence it has in its business and should further improve the company’s already attractive [return on invested capital].” Marie Driscoll, retail analyst at Standard & Poor’s Equity Research, saw the repurchase as “providing support to the shares in a volatile market.” However, Driscoll lowered her first-quarter earnings estimate to 95 cents a share from 99 cents. Last year, first-quarter earnings were $1.12. Nike will report results for the quarter after the market closes on Wednesday. “We see stable margins, but expect the [foreign exchange] benefits Nike has enjoyed in the past two years will now provide a headwind,” she said. Nike shares fell 67 cents, or 1.1 percent, Monday to close at $63.03.
To celebrate Pride 2018, @themarcjacobs released the #GratefulNotHateful campaign, a social media initiative aimed at extending Pride beyond the parade. Inspired by Jacobs’ everyday outlook, the campaign features Jacobs along with a group of models and social media stars who are members and supporters of the LGBT community, all seen wearing @marcbeauty’s Highliner Gel Eye Crayons in colors of the rainbow. Head to our Instagram stories to see close-ups of the liner. #wwdbeauty
Virgil Abloh’s dad Nee and Don Crawley, cofounder of RSVP Gallery, were some of the hometown crew at the Chicago-born designer’s debut show for Louis Vuitton. (📸: @jdiderich ) #wwdmens #louisvuitton #virgilabloh
About last night: @marycharteris and @adwoaaboah hit up Hyde Park for the Serpentine Galleries’ annual summer party held in partnership with @chanelofficial. Head to WWD.com to see more photos. #wwdfashion
“This is Paris, my first show. I’m all about democracy. If some kid shows up, flew from New Jersey to just be around, let’s get him a seat.” — @virgilabloh tells WWD’s @jdiderich ahead of his first show for @louisvuitton men’s. (📸: @alfredo_piola ) #wwdmens #virgilabloh #louisvuitton
“Kate Spade was a true fashion icon who brought joy to the lives of women around the world, and inspired women to live life to the fullest. We are dedicated to carrying on her legacy,” said Anna Bakst, brand president and chief executive officer of @katespadeny. The Kate Spade Foundation announced that it will be donating $1 million to suicide prevention and mental health awareness in tribute to the recent death of Kate Spade. Read more on WWD.com. #wwdnews (📷: @chinseephoto)
A first look at @virgilabloh’s sneakers for @louisvuitton. Abloh spoke to WWD about his debut collection for Louis Vuitton, creating @kendalljenner’s #metgala outfit and redefining the heritage brand. Read the full story on WWD.com. #wwdfashion 📷: @alfredo_piola)
The world’s largest producer of denim @iskodenim is sharing the strategy behind its product development process. Read our full interview with ISKO’s product development manager Baris Ozden on the company’s extensive research practices, upcoming denim trends and the latest material innovations on WWD.com. #iskodenim