Nike swings to quarterly loss on COVID-19 impact; shares fall

© Reuters. FILE PHOTO: A woman wearing a protective face shield and a protective face mask is silhouetted near a Nike logo at a shopping mall after the government eased restrictions amid the coronavirus disease (COVID-19) outbreak in Jakarta

(Reuters) – Nike Inc (N:) on Thursday reported a loss for the fourth quarter, as retailers had to shut stores for weeks due to lockdowns spurred by the COVID-19 pandemic, sending shares of the world’s largest footwear company down 3.5%.

The company’s wholesale business, through which it sells merchandise to department stores and footwear retailers, saw a 50% fall in product shipments in the quarter.

Retailers have suffered due to store closures brought in place by government-led lockdowns, forcing many to limit their business to online operations.

Nike’s investments in its digital platform over the years helped the company record a 75% rise in online sales, as many consumers shopped for activewear from the comfort of their homes.

Net loss came in at $790 million, or 51 cents per share, compared with a profit of $989 million, or 62 cents per share, a year earlier.

Revenue fell 38% to $6.31 billion in the quarter ended May 31. Analysts on average had expected $7.32 billion, according to IBES data from Refinitiv.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

READ  Analyst Dick Bove says the Fed's balance sheet management is costing taxpayers money

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.



Please enter your comment!
Please enter your name here