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May 31, 2020
Nike Q4 2020 Earnings Report
Nike's Q4 2020 earnings were impacted by COVID-19, with revenue decreasing due to store closures, but digital sales increased significantly.
Key Takeaways
Nike's Q4 2020 revenue decreased by 38% to $6.3 billion due to widespread store closures related to COVID-19. Digital sales grew by 75%, but were not enough to offset the decline in physical retail. The company reported a net loss of $790 million, or $0.51 per share.
Revenues decreased 38 percent to $6.3 billion.
NIKE digital sales increased 75 percent.
Gross margin decreased to 37.3 percent.
Net loss was $790 million and diluted net loss per share was $0.51.
Nike
Nike
Nike Revenue by Geographic Location
Forward Guidance
NIKE is focused on prioritizing the health of teammates and consumers and have taken proactive steps to help ensure a safe environment.
Positive Outlook
- Approximately 90 percent 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.
- In Greater China, nearly 100 percent of NIKE-owned stores are open.
- Roughly 85 percent of NIKE-owned stores are open in North America
- About 90 percent are open in EMEA
Challenges Ahead
- Macroeconomic uncertainty
- optimizing marketplace supply and demand
- cost management
- leveraging our financial strength
- drive long-term sustainable, profitable growth
Revenue & Expenses
Visualization of income flow from segment revenue to net income