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Nike swings to quarterly loss on COVID-19 impact; shares fall

Published 06/25/2020, 04:35 PM
Updated 06/25/2020, 05:15 PM
© Reuters. FILE PHOTO: A woman wearing a protective face shield and a protective face mask is silhouetted near a Nike logo at a shopping mall after the government eased restrictions amid the coronavirus disease (COVID-19) outbreak in Jakarta

(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.

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