Nike is one of the most famous companies not only in the U.S. but around the world as well. It means people in different parts of the world know about this company. The coronavirus pandemic affected many companies. Hopefully, the famous company adapted to the new reality.
It is worth noting that, Nike reported an 82% increase in online sales. Interestingly, the company used the coronavirus pandemic as an opportunity to accelerate its digital business and its women’s apparel division grew nearly 200%.
Nike also offered an updated outlook for fiscal 2021. The company expects sales to be up high single digits to low double digits from a year earlier. Notably, many rivals are avoiding guidance.
Nike and interesting details
Notably, the company surpassed expectations. Interestingly, for the first quarter net income increased to $1.52 billion or 95 cents per share, from $1.37 billion or 86 cents per share, a year earlier. The first quarter ended on August 31.
However, Nike’s revenue declined 0.6% to $10.59 billion from $10.66 billion a year earlier. Nevertheless, even this result exceeded expectations.
Sales in China rose 6% but that was not the case for North America. Sales in Nike’s largest market fell 2%.
Its latest results are a strong reversal for the company after it experienced a bigger slump last quarter. People should take into account that, Nike reported an unexpected loss. Its revenue dropped 38% year over year.
Notably, in the first quarter, Nike reopened the majority of its stores. However, like many other retailers, the company is still limiting the number of people who can come into its stores at once, as Nike wants to contain the spread of the virus.
As stated above, the pandemic is accelerating Nike’s digital potential. The company is investing in its website, mobile apps, and owned stores. Online shopping is here to stay and the company is willing to boost its online sales.