Attributable to a big reliance on China for manufacturing, NIKE confronted the affect of COVID-19 throughout Q3 and This fall of 2020. Identical to another discretionary product retailer, NIKE handled problems with non permanent retailer closures, lowered retailer timings, and lowered wholesale cargo in the course of the second half of FY 2020.
Nevertheless, by the point the corporate moved into Q1 2021, a lot of the NIKE-owned bodily shops had been open. That isn’t to say issues went again to regular. On a year-over-year foundation, the corporate’s bodily retail shops nonetheless witnessed lowered visitors as social distancing measures had been adopted all through the world.
Throughout Q1 2021, NIKE direct gross sales grew by 13% (currency-adjusted) to $3.7 billion in comparison with Q1 2020. Nevertheless, the spotlight of the quarter was NIKE digital that grew by 83%, representing the sooner development channel for the corporate. With this, the corporate was in a position to offset a virtually 20% decline in comparable retailer gross sales attributable to COVID-19-related restrictions.
On a diluted foundation, NIKE was in a position to improve its EPS throughout Q1 2021 to $0.95 per share in comparison with that in Q1 2020. Throughout this quarter, NIKE’s cash movement from operations additionally improved to $882 million in comparison with $394 million throughout Q1 2020.
Bettering situations in Q1 2021 made it simpler for NIKE to extend its quarterly dividend from 24.5 cents to 27.5 cents payable to shareholders of report as on December 7, 2020.
Nevertheless, to protect liquidity, NIKE has quickly suspended its share repurchases below its four-year $15 billion program that was accredited in 2018. As much as August 31, 2020, the corporate repurchased practically 45 million shares at a value of roughly $four billion.
Shifting ahead, the corporate intends to strengthen its digital presence and enhance its product innovation pipeline.
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