Nike’s results for the first quarter ended August 31, 2020, strong despite disruptions by the COVID-19 pandemic, according to the quarterly earnings report. Nike’s digital growth and brand momentum accelerated the recovery from the impacts of COVID-19 – Matt Friend, Executive Vice President and Chief Financial Officer. Digital sales offset low revenue in the wholesale business and company stores. Physical retail traffic declining on COVID-19 pandemic and related control measures.
- $ 10.6 billion quarterly revenues, 1 percent drop from the prior year’s performance on a currency-neutral basis
- North America Revenue $4.23B, -2% year over a year (-1% excluding currency change)
- Europe, Middle East & Africa Revenue $2.91B, +5% year over a year (+5% excluding currency change)
- Greater China Revenue $1.78B, +6% year over a year (+8% excluding currency change)
- Asia Pacific & Latin America Revenue $1.10B, -18% year over a year (-12% excluding currency change)you
- Digital sales up 82 percent or 83 percent on currency-neutral terms, with a double-digit increase in Greater China, North America, APLA, and triple growth in EMEA.
- Direct sales $ 3.7 billion, 12 percent rise on reported basis and 13 percent increase on a currency-neutral basis
- Diluted earnings per share for the quarter up 10 percent to $ 0.95.
- $ 6.7 billion inventory, a 15 percent increase to prior year, but a 9 percent drop from prior quarter due to door closures and lower inventory shipments
- Quarterly gross margins down 90bps y/y to 44.8 percent due to COVID-19 impacts.
- All share repurchases during the fourth quarter suspended.
Nike’s stock has responded favorably to the quarterly report. NKE: NYSE is up 12.25%