At the beginning of the year, the corona virus seemed to be a Chinese problem above all. At the time, Nike was still doing extremely well in North America and Europe. This can be seen in the annual report for the past quarter.
The world's largest sporting goods manufacturer, Nike, generated significantly more sales in the past business quarter, despite the initial strains caused by the corona virus crisis. Revenue climbed five percent year over year to $ 10.1 billion in the three months to end of February, according to Adidas' rival at the Beaverton headquarters on Tuesday after the U.S. closed. The market expectations were thereby exceeded by far, the stock initially reacted with a strong price increase. Nike 74.31 The annual report relates to a period that has not yet properly captured the global spread of the corona virus. The high demand in North America and Europe caused sales to climb. However, Nike has already felt the consequences in its most important foreign market, China, where at times more than half of the branches had to be closed. There was a four percent drop in sales in the region, the first drop in 22 consecutive quarters with double-digit growth. Nike's net income contracted 23 percent year-over-year to $ 847 million. In addition to the losses in China, one-off special costs were decisive here, and despite the significant drop in earnings, Nike earned much better than analysts expected. While the group has already opened 80 percent of its stores in China, most of the other branches worldwide have been closed since mid-March due to the virus.