Nike Inc. (NYSE: NKE) slipped to a loss in the fourth quarter of 2020 from a profit last year due to the closure of its stores arising from the rapid spread of the COVID-19 pandemic. The results missed analysts’ expectations.
The results were significantly impacted by physical store closures across North America, EMEA, and APLA, where 90% of NIKE-owned stores were closed for roughly eight weeks in the quarter to protect the health and safety of teammates and consumers and help slow the spread of the COVID-19 pandemic.
As of June 25, about 90% of NIKE-owned stores are open across the globe. Retail traffic continues to improve week-over-week with higher conversion rates as compared to the prior year. As the company continues to reopen retail stores and increase distribution center activity, Nike remains focused on prioritizing the health of its teammates and consumers and has taken proactive steps to help ensure a safe environment.
Nike’s competitor Under Armour (NYSE: UAA) reported weak earnings and revenue for the first quarter of 2020 due to the pandemic. Under Armour has made very difficult decisions of protecting its financial stability that includes temporary laying off teammates in the US retail stores and distribution centers.
Take a look at our Retail articles here
Most Popular
Does Unity Software (U) stock has more room to run?
Last month, the IPO market was in a full swing. IPOs of Snowflake (NYSE: SNOW) and JFROG (NASDAQ: FROG) had an impressive opening day in September, the former creating a
PepsiCo (PEP): Steady snacking habits amid pandemic drive strong quarter for beverage giant
PepsiCo Inc. (NASDAQ: PEP) beat market expectations on both revenue and earnings for the third quarter of 2020. The company saw the momentum continue in its snacks business while the
Does the virus-driven boom make Electronic Arts (EA) a good investment?
With more and more people turning to virtual entertainment sources, amid the virus-related movement restrictions, video game publishers like Electronic Arts (NASDAQ: EA) are witnessing unusually high demand. Not surprisingly,
One thought on “Nike (NKE) slips to a loss in Q4, misses estimates”