Business

Nike swings to quarterly loss

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The loss is down from a net profit of $989m (£797m) in the same quarter last year. 

Revenues dipped 38% to $6.3bn (£5bn) year-on-year. 

However, Nike digital sales increased by 75% in the fourth quarter and accounted for approximately 30% of total revenue. 

Around 90% of Nike’s stores were closed for eight weeks in the quarter. Wholesale partners were similarly affected and product shipments to wholesale customers were down nearly 50%. 

As lockdown restrictions ease across the globe, roughly 85% of Nike stores are now open in North America and about 90% in the EMEA region. 

“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,” said Matt Friend, executive vice president and chief financial officer. “Amid macroeconomic uncertainty, we will continue to operate with agility, focused on optimizing marketplace supply and demand, cost management and leveraging our financial strength to drive long-term sustainable, profitable growth.”

Revenues for the fiscal year dropped 4.3% to $37.4bn (£30.1bn). Net profit dropped 37% to $2.5bn (£2bn). 

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