Nike's fourth quarter results were significantly impacted by physical store closures across North America, EMEA and APLA, where 90% of the brand's-owned stores were closed for roughly eight weeks in the quarter. With Nike's wholesale partners largely following the same pattern product shipments to wholesale customers were down by nearly 50% resulting in lower total revenue and higher inventory. “In a highly dynamic environment, the Nike brand continues to resonate strongly with consumers all over the world as our digital business accelerates in every market. We are uniquely positioned to grow, and now is the time to build on Nike's strengths and distinct capabilities. We are continuing to invest in our biggest opportunities, including a more connected digital marketplace, to extend our leadership and fuel long-term growth”, commented John Donahoe, President and Chief Executive Officer.

Fourth Quarter Review

Revenue for Nike decreased by 38% to 6.3 billion US dollars, down by 36% on a currency-neutral basis, primarily due to owned and partner physical store closures across North America, EMEA and APLA due to COVID-19, partially offset by growth in Greater China. Net loss totalled 790 million US dollars and diluted net loss per share was 0.51 US dollars driven by lower revenue and gross margin as a result of the COVID-19 impact on operations, partially offset by lower selling and administrative expenses.

Fiscal 2020 Review

Revenue for Nike fell by 4% to 37.4 billion US dollars, down by 2% on a currency-neutral basis due to the impact of COVID-19 on business operations, primarily in the fourth quarter. In the first half of fiscal 2020, prior to COVID-19, Nike revenue was up by 9% (11% on a currency-neutral basis). In fiscal 2020, digital sales increased by 47% (49% on a currency-neutral basis), with all geographies growing strong double-digits. Greater China revenue increased by 8% (11% on a currency-neutral basis), marking its sixth consecutive year of double-digit growth on a currency-neutral basis. Net income was 2.5 billion US dollars and diluted earnings per share was 1.60 US dollars, down by 36%, driven by lower revenue and gross margin impacted by COVID-19 in the fourth quarter and higher selling and administrative expenses, partially offset by a lower tax rate and a lower average share count.

COVID-19 Update

Currently, approximately 90% of Nike-owned stores are open across the globe. The brand says that retail traffic continues to improve week-over-week with higher conversion rates as compared to the prior year. In Greater China, nearly 100% of Nike-owned stores are open. In North America, EMEA and APLA, approximately 90% of physical owned stores were closed during the fourth quarter with stores gradually reopening at different paces in each country beginning in mid-May. Roughly 85% of Nike-owned stores are open in North America and about 90% in EMEA, with approximately 65% open in APLA or operating under reduced hours. "Amid macroeconomic uncertainty, we will continue to operate with agility, focused on optimizing marketplace supply and demand, cost management and leveraging our financial strength to drive long-term sustainable, profitable growth. As we continue to reopen retail stores and increase distribution centre activity, we remain focused on prioritizing the health of our teammates and consumers and have taken proactive steps to help ensure a safe environment. During the quarter, we made significant investments to provide employee pay continuity and committed over 25 million US dollars to support communities impacted by COVID-19 among other COVID-19 response efforts", Matt Friend, Executive Vice President and Chief Financial Officer.