Nike, Inc. has announced that its board of directors has approved a new four-year, $12 billion program to repurchase shares of Nike’s Class B Common Stock. The new program will take effect once the sporting goods company completes its current $8 billion share repurchase program, which is expected to take place at the end of fiscal 2016. Nike had approximately 678 million shares of Class B Common Stock outstanding as of November 16, 2015.”
The Board of Directors also approved a two-for-one split of both Nike’s Class A and Class B Common shares, as well as an increase in its quarterly dividend. The stock split will be in the form of a 100 percent stock dividend payable on December 23, 2015 to shareholders 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. Nike expects its common stock to begin trading at the split-adjusted price on December 24, 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.”