Nike reported an unexpected quarterly net loss and a sales decline of 38% year-over-year. Digital sales soared 75%, representing about 30% of total revenue, as shoppers flocked to Nike’s website for sneakers and workout gear. But expenses for shipping and returns also put more pressure on the company’s profits. Nike’s margins during its fiscal fourth quarter shrank to 37.3% from 45.5% a year ago.
This seems a good way to destroy these SJW companies. Hurt their gross margins with extra costs like returns. Be a bad customer.
Nike (NKE) swung to a quarterly loss and posted fiscal fourth-quarter sales that dropped more than expected, as a slew of global store closures hit the athletic-wear maker’s results.
Shares of Nike dropped more than 2% in extended trading after reporting results.
Here were the main metrics from the report, compared to consensus estimates compiled by Bloomberg:
Revenue: $6.31 billion, vs. $7.38 billion expected and $10.2 billion Y/Y
Loss per share: 51 cents, vs. earnings of 10 cents per share expected and earnings of 62 cents Y/Y
Nike’s fiscal fourth quarter captured the three-month period between March and the end of May, during which the athletic-wear giant contended with a wide range of virus-related store closures outside of mainland China. About 90% of Nike’s physical stores in North America, Europe, the Middle East, Africa and the Asia Pacific region were closed for about eight weeks during the quarter.
Nike warned in a mid-May update that closures would generate “significantly lower wholesale revenue and higher inventory” during the fourth quarter, and exert a “material impact” on results across its regions. The company’s closely watched gross margin shrank 820 basis points, to 37.2%, in the fourth quarter — driven in part by factory cancelation charges, rising inventory reserves and supply chain costs.
The Beaverton, Oregon-based company said 90% of company-owned stores were open as of Thursday, including 100% of stores in China. Retail traffic “continue to improve week-over-week with higher conversion rates as compared to the prior year,” Nike added.
The previous quarter through the end of February saw Nike’s sales hold up more strongly than expected, even given closures that at the time had swept China.
However, it managed to offset some revenue declines due to retail store closures in China with a more than 30% surge in digital sales.
That dynamic continued to an extent across Nike’s other geographies in the reported quarter, but not by enough to buoy overall sales. Nike’s digital sales surged 75% in the fourth quarter, comprising about 30% of overall revenue.
“As physical retail re-opens, NIKE's strong digital trends continue, a testament to the strength of our brand and the investments we've made to elevate digital consumer experiences,” Nike Chief Financial Officer Matt Friend said in a statement.
Shares of Nike have fallen less than half a percent for the year to date, versus a decline of 4.8% in the S&P 500.
Nike shoes are shit, they should worry less about politics and more about not using slave labor to produce over priced pieces of crap. That might help their bottom line.
So that's Q4. Now add a stifling KungFlu loss and we should be close to at least halfway through their cash reserves. They probably took PPE funds though I'm sure. Fuck Nike!!
Meanwhile, Nikes have been flying off the shelves in record numbers by American ‘protesters’.
After I wore down my last pairs of Nikes, I bought New Balances and will never look back.
LOL came here to say this. Did they lose this many sales, or just this many 'free' shoes?
Yeah, but that's no fun. :) I predict more losses.
The shoes they make cost them almost nothing to make so who knows how much the looting really affected them.
Yep. It’s part of the community outreach program
Now's the perfect time to put heavy tariffs on all shoes imported from China.
Yes, and specifically state that the tariffs are because of the fact that Nike is using SLAVE LABOR, and it is against US values.
and that's not some "conspiracy theory"
but then they might have to use slave labor to keep their margins high enough to afford to pay Kaepernick to protest against slavery
yep
Now this is a feel good story! Now let's see what Dick's sales are.
Let’s see Labron and Kappernick renegotiate the contrast to save the Chyna slave laborers that make their shoes !!!
I hope the assholes at Nike that have profited off of slave labor for decades lose everything and end up having to suck dick in alleyways to live.
Nikes can’t be shined, so they’re out.
Most of my Nikes are white. Am I a racist??
Why do you own Nikes?
So how come Jordan isn’t a stereotype?
This seems a good way to destroy these SJW companies. Hurt their gross margins with extra costs like returns. Be a bad customer.
Nike (NKE) swung to a quarterly loss and posted fiscal fourth-quarter sales that dropped more than expected, as a slew of global store closures hit the athletic-wear maker’s results.
Shares of Nike dropped more than 2% in extended trading after reporting results.
Here were the main metrics from the report, compared to consensus estimates compiled by Bloomberg:
Revenue: $6.31 billion, vs. $7.38 billion expected and $10.2 billion Y/Y Loss per share: 51 cents, vs. earnings of 10 cents per share expected and earnings of 62 cents Y/Y Nike’s fiscal fourth quarter captured the three-month period between March and the end of May, during which the athletic-wear giant contended with a wide range of virus-related store closures outside of mainland China. About 90% of Nike’s physical stores in North America, Europe, the Middle East, Africa and the Asia Pacific region were closed for about eight weeks during the quarter.
Nike warned in a mid-May update that closures would generate “significantly lower wholesale revenue and higher inventory” during the fourth quarter, and exert a “material impact” on results across its regions. The company’s closely watched gross margin shrank 820 basis points, to 37.2%, in the fourth quarter — driven in part by factory cancelation charges, rising inventory reserves and supply chain costs.
The Beaverton, Oregon-based company said 90% of company-owned stores were open as of Thursday, including 100% of stores in China. Retail traffic “continue to improve week-over-week with higher conversion rates as compared to the prior year,” Nike added.
The previous quarter through the end of February saw Nike’s sales hold up more strongly than expected, even given closures that at the time had swept China.
However, it managed to offset some revenue declines due to retail store closures in China with a more than 30% surge in digital sales.
That dynamic continued to an extent across Nike’s other geographies in the reported quarter, but not by enough to buoy overall sales. Nike’s digital sales surged 75% in the fourth quarter, comprising about 30% of overall revenue.
“As physical retail re-opens, NIKE's strong digital trends continue, a testament to the strength of our brand and the investments we've made to elevate digital consumer experiences,” Nike Chief Financial Officer Matt Friend said in a statement.
Shares of Nike have fallen less than half a percent for the year to date, versus a decline of 4.8% in the S&P 500.
Burn Baby Burn! (financially, of course)
Nike shoes are shit, they should worry less about politics and more about not using slave labor to produce over priced pieces of crap. That might help their bottom line.
So that's Q4. Now add a stifling KungFlu loss and we should be close to at least halfway through their cash reserves. They probably took PPE funds though I'm sure. Fuck Nike!!
But if the rioters loot enough of their shoes they will make it up on volume.
Q4? We are in Q2