Nike loses its footing during coronavirus pandemic, as online sales fail to offset damage caused by store closures
Own goal: Nike has reportedly paid footballer Cristiano Ronaldo (pictured) a staggering £147m to represent the brand
Nike has lost its footing during the coronavirus pandemic, as online sales failed to offset the damage caused by physical store closures.
The sportswear retailer said sales tumbled 38 per cent in the three months to May 31, to £5billion.
It swung to a £637m loss over the same period, from a £797m profit a year earlier.
The US-head-quartered company – which has reportedly paid footballer Cristiano Ronaldo a staggering £147m to represent the brand – had to close around 90 per cent of its Nike-owned stores in the Americas, Europe and Asia-Pacific for roughly eight weeks to comply with national lockdowns. Sales were further knocked by closures at wholesalers.
John Donahoe, chief executive, said online sales had grown to 30 per cent of Nike’s total during the pandemic, and he expected this to increase to 50 per cent ‘in the foreseeable future’ as customers stuck with internet shopping.
Donahoe added that Nike would be boosting investment in its digital sales. However, it has not yet given up on the High Street, with between 150 and 200 bricks-and-mortar shops opening in North America and Europe this year, he added.