Nike Increases Profit Significantly Corona Crisis Boosts Online Sales
Digital business revenues increased 82 percent. The Adidas competitor is thus exceeding analyst expectations. The share increased by eight percent after the trading day.
Beaverton The online shopping boom and lower spending during the coronavirus pandemic helped Nike increase profits in the most recent quarter. After the shock in the previous quarter, the US sporting goods manufacturer Nike surprised investors this time.
The Adidas competitor kept its sales in the three months to the end of August almost stable at 10.6 billion dollars compared to the previous year and increased profits by eleven percent to 1.5 billion dollars. Nike exceeded all expectations. The share price then climbed by more than eight percent in after-hours trading.
The strong online business and lower costs are primarily responsible for the good numbers. Nike spent significantly less on advertising in its first quarter of the new fiscal year. In addition, many live sporting events had been canceled due to Covid-19.
While sales in stores were rather sluggish, digital business grew by 82 percent. “We know that digital is the ‘New Normal’,” said CEO John Donahoe. Nike turned in $ 900 million more online in the past quarter than in the previous year.
Nike Increases Profit Significantly Corona Crisis Boosts Online Sales - /10