new-recommended-broker-banner new-recommended-broker-banner

Nike Share Price Slips 4% As Sales Decline 38%

Start trading
Updated: 26 June 2020

Shares of (NYSE: NKE) have plunged 4% in premarket trading after the sneaker-maker said its sales declined 38% in the fourth quarter. The Oregon-based giant posted a loss of $0.51 per share, substantially lower than a profit of $0.07 expected from analysts. 

Nike recorded revenue of $6.31 billion, more than $1 billion lower than $7.32 billion expected from Wall Street. 

Nike shops closed COVID 19 June 2020

“Our fourth quarter results were significantly impacted by physical store closures across North America, EMEA and APLA, where 90 percent 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,” Nike said in a statement. 

Looking at the same period last year, Nike earned $0.62 per share on $10.18 billion. 

The North American business underperformed substantially with sales plunging 46%. Nike’s Converse brand witnessed its sales go 38% down as well amid the COVID-19 outbreak. 

These losses were partially offset by booming online sales. Nike reported its digital sales soared 75%, mostly on sales of sneakers and workout gear. 

Nike Share Price Plunges On Weak Sales June 2020

“We are continuing to invest in our biggest opportunities, including a more connected digital marketplace,” Chief Executive John Donahoe said.

Nike stock price dipped 4% in premarket trading to trade around the $97 mark.