Nike reports $790-million Q4 loss as sales plunge on virus hit

NEW YORK, USA – Sports giant Nike reported a surprise loss on Thursday, June 25, as shutdowns due to COVID-19 prompted a big drop in revenues in spite of higher online sales.

Nike reported a loss of $790 million in the quarter ending May 31, which translated to a loss of 51 cents per share compared with analyst expectations for 9 cents per share in profit.

Revenues tumbled 38% to $6.3 billion following huge declines in sales in most of the world.

In North America, the company’s biggest operating region, revenues plunged 46% to $2.2 billion.

Nike said 90% of its stores were closed for roughly 8 weeks during the quarter in 3 of its 4 operating regions, with the exception being Greater China. A bright spot was online sales, with digital sales increasing 75% during the quarter.

The results are among the first by a major company to detail the hit from the coronavirus during the period of peak shutdowns. Nike is on a different fiscal calendar than most other large companies, with its 4th quarter ending May 31.

The 2nd quarter earnings period, which covers the quarter ending June 30, will begin in mid-July.

Shares of Nike fell 3.7% ot $97.61. – Rappler.com