Nike resists coronavirus through online sales

New York (awp / afp) – The equipment supplier Nike pleasantly surprised the markets on Tuesday, reporting solid quarterly results, despite the coronavirus pandemic which led to the closure of 75% of its stores in China at the peak of this. health crisis in the country.

The American group also indicated that nearly 80% of its Chinese stores had reopened, which bodes well for the rest of the year, especially since the American and European stores are closed.

“As the recovery begins in China, no other company is as well equipped as Nike to evolve in the climate” of current uncertainties, said managing director John Donahoe, quoted in a statement.

Revenues increased 5% to $ 10.1 billion in the three months ended February 29, corresponding to the third quarter of fiscal year 2019/20.

This increase is due to a jump of 36% in online sales of products and articles from the Comma brand, “The Swoosh”.

In China, Nike purchases on e-commerce platforms exceeded sales in physical stores by more than 30%, the company said.

These figures highlight the explosion of online commerce during this health crisis that caused measures to contain people across the globe in order to stem the Covid-19.

Nike posted quarterly net profit of $ 847 million, down 23%, weighed down by an expense related to a reorganization of its distribution chain in South America, particularly in Argentina, Brazil, Chile and Uruguay.

Adjusted earnings per share, the benchmark in North America, suffered as a result, standing at only 53 cents, lower than the 59 cents expected on average by financial analysts. It could have been 78 cents, defends Nike.

The performance of the equipment supplier gives a first glimpse of the impact of the new coronavirus on multinationals, which saw their activity disrupted from the end of January in China and from the end of February in Europe and now in the United States.

Nike explains, for example, that it experienced double-digit sales growth in China in the first two months of the past quarter (December and January), but everything melted due to the new coronavirus pandemic.

Chinese sales finally fell by 4% over the period, their first decline in 22 quarters, in more than five years.

afp / rp

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