Nike posts first quarterly loss in two years
Nike posted an unexpected loss late Thursday (June 25).
It represents its first quarterly deficit in more than two years.
The net loss came in at 51 cents per share, when Wall Street had expected a profit of 7 cents per share.
Revenue dropped almost 40 percent to just over 6.3 billion dollars.
Nike was hurt by closures of department and retail stores.
Its wholesale operations, which supply third-party retailers, also ground to a halt.
Years of digital investments paid off though.
It recorded a 75% jump in online sales as consumers shopped from home.
Chief Executive John Donahoe says that’s now the focus.
He expects online’s share to rise to 50% of the firm’s sales, from 30% currently.
Nike shares sank about 4% in after-hours trading.
