Nike sales have been hit harder than expected due to the coronavirus pandemic. This week the sportswear giant shared its financial report for the 2020 fiscal year, revealing a $790 million loss in Q4, which equates to a 38 percent drop in revenue.
As with many other retailers, Nike has been forced to temporarily close a number of its stores during the pandemic, while a large portion of its wholesale partners have done the same, leaving the brand with fewer orders to fill.
Nike reports a loss of 51 cents per share during its fiscal fourth quarter, while revenue was down $6.31 billion, compared to $10.18 billion a year ago. Sales in North America dropped 46 percent, whereas sales in China only decreased by three percent, as many stores in the area have reopened sooner following the Covid-19 spike. Footwear sales at Nike were down 35 percent, while apparel and equipment sales fell 42 percent and 53 percent, respectively.
While Nike stores were closed, online sales increased by 75 percent, accounting for roughly 30 percent of total revenue in Q4. Moving forward, the brand hopes digital sales will account for 50 percent of overall sales.
“We are continuing to invest in our biggest opportunities, including a more connected digital marketplace,” Chief Executive John Donahoe said in a statement. “Consumers want modern, seamless experiences, online-to-offline, so we’re accelerating our approach.”
Donahoe went on to reveal that Nike’s online business has increased by triple digits so far in June, while physical sales remain low. As it stands, approximately 90 percent of Nike stores have reopened globally, including 85 percent in North America.
For more on Nike’s Q4 earnings, follow here.