Nike posts $790M loss after coronavirus pandemic shuttered stores
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Nike lost $790 million during a fourth quarter in which nearly all of its stores were forced to close due to the coronavirus pandemic, the company said in its earnings report Thursday.
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Sales fell 38 percent to $6.3 billion during the quarter, falling far short of the $7.3 billion that Wall Street analysts expected, according to Refinitiv data. Nike posted a loss of 51 cents per share. The company reported a profit of $989 million in the same period one year ago.
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“Our fourth quarter results were significantly impacted by physical store closures across North America, EMEA and APLA, where 90 percent of NIKE-owned stores were closed for roughly eight weeks in the quarter to protect the health and safety of teammates and consumers and help slow the spread of the COVID-19 pandemic,” Nike said in its earnings release. “Our wholesale partners largely followed the same pattern and as a result, product shipments to wholesale customers were down nearly 50 percent resulting in lower total revenue and higher inventory.”
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Nike shares dipped more than 2 percent in after-hours trading on the results.
No-essential businesses in the U.S. and abroad shut down in March as the coronavirus pandemic worsened, bringing the retail industry to a halt. About 90 percent of Nike-owned stores have since reopened for business, the company said.
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Nike accelerated its recent emphasis on e-commerce operations when stores shut down. Digital sales rose 75 percent for the quarter.
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This is a breaking story. Check back for updates.
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