WASHINGTON (Sputnik) – Nike revenues plummeted by almost 40 percent in the fourth quarter as a result of store closures amid the COVID-19 pandemic, the US-based sportswear company said in a financial report.
Nike’s net loss for the quarter totaled $790 million, the report added, while gross margins shrank due to higher operating expenses driven by cancellations, inventory obsolescence, and adverse effects of fixed supply chain costs.
For the fiscal year, Nike’s Greater China revenues increased eight percent – the segment’s sixth consecutive year of double-digit growth despite headwinds from COVID-19 in the second half of the year.
Selling and administrative expenses decreased 6 percent to $3.2 billion, which included an incremental $178 million increase in bad debt expense, the company added.
Sourse: sputniknews.com
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