Yesterday, Nike released its financial report for the previous quarter. Given the current global situation, the report came on partially negative, but it had some good news on digital sales.
Compared to last year’s earnings of $989 million or an EPS of 62 cents, this year, Nike lost $790 million or a 51 cent EPS. Also, the in-store sales dropped to $6.3 billion from $10.1 billion last year. According to Nike, the 38% drop is caused by the store closure during the pandemic. Still, the sales in China grew by 8%, marking the sixth consecutive year of increase (100% of its stores are open in China).
On the other side, it scored a 75% increase in online sales, which accounts for a third of the total revenue for the trimester.
As of yesterday, 90% of Nike-owned stores are open globally; in America alone, 85% are functional. After being hit by the pandemic, Nike secured $2 billion in the credit facility, which adds to the already existing $2 billion meant to ensure flexibility and liquidity.
In after-market trading, Nike stocks lost more than 3%.
Over the past months, the fashion industry has been hit hard by the pandemic. Read more about it on CAPEX.com!
Sources: news.nike.com, marketwatch.com
