Nike takes $790 million loss in sales slump, even as China returns to growth
COVID-19 has caused numerous retail chains to close temporarily, including Apple, Macy's and Nike. Here is a look at some of the closures. Wochit
Nearly all of the footwear giant's retailing stores were closed for two thirds of the fiscal fourth quarter.
China, one of Nike's biggest markets, is growing again following a rare decline last quarter. But that rebound wasn't enough to save the footwear and apparel giant from reporting a sharp COVID-19-related global sales drop in the fiscal fourth quarter.
That period covers March, April, and May, and so it spanned the reopening of retailing in China and the maximum social-distancing efforts that followed in North America and Europe. Those moves pushed revenue down 38% for the quarter, Nike said on Thursday afternoon.
Sales in the U.S. market were down 46%, Europe was lower by 44%, and China notched a slight 1% uptick. The overall decline pressured gross profit margin and sparked significant inventory write-down charges. As a result, Nike posted a $790 million loss for the period.
Macy's jobs cut: Demitrios Kalogeropoulos owns shares of Nike. The Motley Fool owns shares of and recommends Nike. The Motley Fool has a disclosure policy.
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