Sporting goods titan and InvestorPlace Real America Index component Nike (NYSE:NKE) announced an $8 billion share repurchase program to be implemented over a 4-year period. The program is in addition to its existing $5 billion program that expires in the second quarter of 2013. The repurchases effect Nike’s “B” shares only.

Competition in the sporting goods industry has turned fierce over the last year, with Under Armour (NYSE:UA) in particular making headway and gaining ground on the Beaverton, Oregon based Nike.

However Nike has enjoyed a strong run so far this year, snagging a 5-year apparel exclusive with the National Football League in April, and unveiling its new LeBron James sneaker line just in time for the upcoming holiday season.

However the success in the boardroom hasn’t helped the share price, as the stock is up just under 2% year to date, and 9% over the last year, under-performing both the S&P 500 (up 20%) and UA (up 50%).

Never the less, Bloomberg quotes Nike Chief Executive Officer Mark Parker on the repurchase plans:

“Repurchasing our shares is a prudent use of our cash. This new share repurchase program demonstrates our continued confidence in Nike’s strategy to generate long-term profitable growth and strong cash flow, and reflects our commitment to delivering value to our shareholders.”

Nike currently pays a quarterly dividend of 36 cents per share with a current dividend yield of 1.5%. The company will host its annual shareholder meeting in Beaverton on Friday.

Written by Marc Bastow, Assistant Editor who as of this writing did not hold a position in any of the aforementioned securities.