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Nike posts negative financial reports

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Miguel A. Rodriguez
Miguel A. Rodriguez
14 September 2020
Nike still fells the pandemic’s impact.

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


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.