×
857
Fashion Jobs
ESTÉE LAUDER
Aveda - Omni National Account & Operations Executive
Permanent · London
ESTÉE LAUDER
Demand Planner - Supply Chain
Permanent · London
ESTÉE LAUDER
Director, International Business Development (Maternity Cover)
Permanent · London
PAUL SMITH
International Sales Executive
Permanent · LONDON
EASTPAK
Sales Manager
Permanent · LONDON
NEW BALANCE
Category Merchandising Manager Emea, Running Footwear
Permanent · Warrington
CONFIDENTIEL
Warehouse Area Manager
Permanent ·
ESTÉE LAUDER
Clinique - Consultant - John Lewis, Liverpool - 26 Hours - Part Time, Permanent
Permanent · Liverpool
ESTÉE LAUDER
Clinique - Consultant - Boots-Aintree, Liverpool - 11 Hours - Part Time, Permanent
Permanent · Liverpool
ESTÉE LAUDER
Clinique - Consultant - Fenwick, Newcastle - 12 Hours - Part Time, Permanent
Permanent · Newcastle upon Tyne
ESTÉE LAUDER
Clinique - Consultant - Boots, Bishops Stortford - 7.5 Hours - Part-Time - Permanent
Permanent · Bishop's Stortford
ESTÉE LAUDER
Clinique - Consultant - Boots, st Davids Cardiff - 37.5 Hours - Full Time, Permanent
Permanent · Cardiff
ESTÉE LAUDER
Clinique - Consultant - Boots, Oracle Reading - 28 Hours - Part Time, Permanent
Permanent · Reading
ESTÉE LAUDER
Clinique - Consultant - Flannels, Sheffield Meadowhall - 22.5 Hours - Part Time, Permanent
Permanent · Sheffield
ESTÉE LAUDER
Clinique - Consultant - John Lewis, Cribbs Causeway - 37.5 Hours - Full Time, Permanent
Permanent · Bristol
ESTÉE LAUDER
Clinique - Consultant - Boots, st Davids Cardiff - 30 Hours - Full Time, Permanent
Permanent · Cardiff
ESTÉE LAUDER
Art Director
Permanent · London
ESTÉE LAUDER
Clinique - Consultant - Fenwick, Bracknell - 11.5 Hours - Part Time, Permanent
Permanent · Bracknell
ESTÉE LAUDER
CRM And Email Analyst (Contract) - Must be Immediately Available
Permanent · London
ESTÉE LAUDER
Senior Art Director
Permanent · London
ESTÉE LAUDER
CRM Analyst
Permanent · London
ESTÉE LAUDER
CRM Manager, jo Malone London
Permanent · London
By
Reuters API
Published
Jun 26, 2020
Reading time
2 minutes
Share
Download
Download the article
Print
Click here to print
Text size
aA+ aA-

Nike posts surprise loss as Covid-19 hits wholesale business

By
Reuters API
Published
Jun 26, 2020

Nike Inc on Thursday reported an unexpected quarterly loss - its first in more than two years - hurt by closures of department and retail stores due to lockdowns spurred by the Covid-19 pandemic.


Revenue fell 3% in the Greater China region, while they plunged nearly 47% in North America - Nike


The footwear maker’s shares fell about 4% in after-hours trading.

The wholesale business, through which Nike sells merchandise to other retailers, came to a halt amid the health crisis. That led to a 50% fall in shipments, increased inventory and higher costs due to order cancellations.

As a result, gross margin fell 820 basis points in the fourth quarter, when company-owned stores and other retailers were closed for nearly eight weeks.

However, Nike’s investments in its digital platform over the years helped it record a 75% rise in online sales, as many consumers shopped for activewear and sneakers from the comfort of their homes.

Chief Executive Officer John Donahoe told analysts the company is now accelerating focus on its online presence, and expects its overall business to reach 50% digital penetration. Online sales accounted for 30% of total revenue in the quarter.

“Covid-19 has shown that our strategy is sound,” Donahoe said.

In China, where the virus was first detected, all of Nike’s stores are now open. Revenue fell 3% in the Greater China region, while they plunged nearly 47% in North America.

Forrester Research retail analyst Sucharita Kodali said the Nike brand is still strong and China sales number is an indicator of what to expect in western markets and the United States as things normalize.

“It’s not financially distressed ... It does not have the problems of other companies in retail.”

Nike’s net loss came in at 51 cents per share and revenue fell 38% to $6.31 billion.

Wall Street was expecting a profit of 7 cents per share and revenue of $7.32 billion, according to IBES data from Refinitiv.

© Thomson Reuters 2021 All rights reserved.