Footwear giant Nike (NYSE: NKE) released its fourth-quarter earnings results on Thursday. The company reported a surprise loss of $790 million due to store closures across North America and other parts of the world and the revenue fell 38% to $6.31 billion in the three-month period ending May 31 compared to the same quarter last year. In North America, the company’s biggest operating region, revenues plunged 46 per cent to $2.2 billion but just 3% in China as stores reopened there.
- Earnings per share (EPS) $-0.51 vs. $0.7 expected
- Revenue $6.31 billion vs. $7.32 billion expected
“The global pandemic has made it clear that consumer behavior is changing rapidly, providing us the opportunity to accelerate the pace of our digital acceleration,” Chief Executive John Donahoe said in a statement. “We are continuing to invest in our biggest opportunities, including a more connected digital marketplace,” he added.
On Thursday the $NKE rallied approximately 3% ahead of the earning while the stock slipped 3% after the market close. On Friday at the time of writing, the Nike shares trading around $97, 4% lower.
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