The Briefing Room
General Category => Economy/Business => Topic started by: mystery-ak on June 26, 2020, 01:38:04 am
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(https://media.breitbart.com/media/2019/07/colin-kaepernick-nike-betsy-ross-shoes-getty-nike-640x480.jpg)
Breitbart News 25 Jun 2020
New York (AFP) – Sports giant Nike reported a surprise loss Thursday as shutdowns due to COVID-19 prompted a big drop in revenues in spite of higher online sales.
Nike reported a loss of $790 million in the quarter ending May 31, which translated to a loss of 51 cents per share compared with analyst expectations for nine cents per share in profit.
Revenues tumbled 38 percent to $6.3 billion following huge declines in sales in most of the world.
In North America, the company’s biggest operating region, revenues plunged 46 percent to $2.2 billion.
A bright spot was online sales, with digital sales increasing 75 percent during the quarter.
The results are among the first by a major company to detail the hit from the coronavirus during the period of peak shutdowns. Nike is on a different fiscal calendar than most other large companies, with its fourth quarter ending May 31.
The second-quarter earnings period, which covers the quarter ending June 30, will begin in mid-July.
Shares of Nike fell 3.7 percent ot $97.61.
https://www.breitbart.com/news/nike-reports-790-mn-q4-loss-as-sales-plunge-on-covid-19-hit/ (https://www.breitbart.com/news/nike-reports-790-mn-q4-loss-as-sales-plunge-on-covid-19-hit/)
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%#&@ Nike.
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Finally, some good news.
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(https://thumbs.gfycat.com/SpeedyMilkyHornedviper-size_restricted.gif)
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But it's all the virus' fault. Couldn't possibly be because Nike got woke and embraced an America hater.
Really shouldn't care what happens to Nike. Never liked their sneakers -- didn't fit me right.
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Since Nike stores have been looted by the woke crowd, why should anybody purchase them now or in the future?
Just steal them instead.
Nike spokesman Colin Kaepernick says.
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A significant % of Nike's sales come from company stores in malls and outlet centers, so Covid-19 has shut down a significant % of Nike sales. And also "trapped" stock in those locations. I'm oversimplifying, ignoring online sales some of which are from online-only sellers. On the demand side, running events in many states were shut down, gyms were shut down, and outdoor use (running, athletic events, park pick-up games, etc.) much reduced. So probably every shoe company has been impacted to a significant degree, not that I'd complain if I'm wrong on that point.
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A significant % of Nike's sales come from company stores in malls and outlet centers, so Covid-19 has shut down a significant % of Nike sales. And also "trapped" stock in those locations. I'm oversimplifying, ignoring online sales some of which are from online-only sellers. On the demand side, running events in many states were shut down, gyms were shut down, and outdoor use (running, athletic events, park pick-up games, etc.) much reduced. So probably every shoe company has been impacted to a significant degree, not that I'd complain if I'm wrong on that point.
That's about how I see it too. A lot of things go into the "Loss" column that affect the bottom line, like paying people who aren't working, and rent on stores that are closed. Not to mention the inventory.
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How a POS left leaning company that makes sneakers could amass a $145B market cap is beyond explanation.
Just more proof Idicocracy got a 500 year head start.
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Sneakers they make for about $3 and sell for $100*. I'm all for capitalism, but golly.
*and then they fall apart.
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Sneakers they make for about $3 and sell for $100*. I'm all for capitalism, but golly.
*and then they fall apart.
Yep, again..... Idiocracy in full frontal view.
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Sneakers they make for about $3 and sell for $100*. I'm all for capitalism, but golly.
*and then they fall apart.
Agreed. Nothing special about them except maybe they have Jordan's or Kaepernick's names on them. I can get sneakers that last about as long as those $100 ones for a lot less; they just don't have some overpaid athlete's name on them.
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Journalism:
Compared to their next two largest competitors?
"Da kicks, dey still went out da door..."
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mountaineer wrote:
"Sneakers they make for about $3 and sell for $100*. I'm all for capitalism, but golly.
*and then they fall apart."
I buy my sneakers at Walmart.
They fall apart, too, but then again, they only cost $20-30.