Nike swings to quarterly loss on COVID-19 impact; shares fall
Reuters
Published Jun 25, 2020 21:27
Updated Jun 25, 2020 22:05
(Reuters) - Nike Inc (N:NKE) 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.
Get The App
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.