Nike's Quarterly Sales Pressured by Coronavirus Closures in China
March 24 2020 - 5:47PM
Dow Jones News
By Kimberly Chin
Sales at Nike Inc. rose in the latest quarter as the retailer
experienced strong growth from direct and digital sales despite
pressures from store closures in China as the coronavirus outbreak
spread.
Digital sales rose 36% across all its regions, with the company
reporting digital sales growth of 30% in Greater China amid store
closures related to the coronavirus outbreak.
For the fiscal third quarter ended Feb. 29, Nike's sales in
China fell 5.2% to $1.51 billion due to measures to contain the
outbreak, though the company said it had strong double-digit sales
growth in the first two months of the quarter. Nike, which doesn't
own factories, produces about 25% of its global apparel and
footwear in China.
Nike is among a large group of retailers that closed thousands
of stores across the U.S. this month for at least two weeks, taking
unprecedented measures to stem the spread of the new
coronavirus.
For the most-recent quarter, the company saw direct sales grow
in the double digits.
Revenue in Nike's North American market, which accounts for the
majority of total sales, rose 4.4% to $3.98 billion.
Overall sales rose 5% from a year ago to $10.1 billion, pulling
ahead of analysts' estimates of $9.81 billion.
Shares of Nike, which have fallen 12% in the past 12 months,
shot up 6.3% in after-hours trading Tuesday to $76.85.
Write to Kimberly Chin at kimberly.chin@wsj.com
(END) Dow Jones Newswires
March 24, 2020 17:32 ET (21:32 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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