NIKE, Inc.’s revenues declined 38% to $6.3 billion, for its fiscal 2020 fourth quarter and full-year ended on May 31, 2020, while digital sales increased 75% during this period. NIKE’s digital sales saw strong double-digit rise across all geographies, accounting for approximately 30% of total revenue.
The decline in NIKE’s revenues was primarily due to the closure of the majority of NIKE-owned and partner stores across North America, EMEA and APLA due to the COVID-19 pandemic, partially offset by growth in Greater China.
“In a highly dynamic environment, the NIKE brand continues to resonate strongly with consumers all over the world as our digital business accelerates in every market,” said John Donahoe, president & CEO, NIKE, Inc. “We are uniquely positioned to grow, and now is the time to build on NIKE’s strengths and distinct capabilities. We are continuing to invest in our biggest opportunities, including a more connected digital marketplace, to extend our leadership and fuel long-term growth.”
Currently, approximately 90% of NIKE-owned stores are open across the globe, and retail traffic is improving week-over-week with higher conversion rates, as compared to the prior year.
“As physical retail re-opens, NIKE’s strong digital trends continue, a testament to the strength of our brand and the investments we’ve made to elevate digital consumer experiences,” added Matt Friend, executive vice president and CFO, NIKE, Inc. “Amid macroeconomic uncertainty, we will continue to operate with agility, focused on optimising marketplace supply and demand, cost management and leveraging our financial strength to drive long-term sustainable, profitable growth.”
According to Reuters news, NIKE has indicated job cuts as it ramps up efforts to sell directly to customers through its online and retail channels.