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Nike Reports Profit Loss of $790 Million in Q4 and a Year-Over-Year Sales Decline of 38% (46% in U.S.)…

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https://theconservativetreehouse.com/2020/06/26/nike-reports-profit-loss-of-790-million-in-q4-and-a-year-over-year-sales-decline-of-38-46-in-u-s/#more-195393

 

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Nike Reports Profit Loss of $790 Million in Q4 and a Year-Over-Year Sales Decline of 38% (46% in U.S.)…


by sundance


There is a lot of weird financial data in/around Nike that is coming to a head.  For those who track issues closely, Nike is using the COVID-19 issues to hide the Kaepernick effect.


Everyone remembers Nike went all-in on their social justice model and made a corporate decision to make Black Lives Matter activist Colin Kaepernick the image of their brand.


nike-1.jpg


In their latest financial results Nike is reporting a net quarterly loss of $790 million…. That’s a big deal. However, given the defensive excuses over the COVID-19 shutdown, that loss alone isn’t the big story.  Their year-over-year sales are down 38%, which tells us the downward spiral has been happening for a lot longer than a quarter.


How bad were their results?  To give you some perspective most financial analysts in the industry were looking for a profit target around seven cents per share.  The result Nike reported was a loss of 51 cents per share.  That is a massive disparity.


In my opinion, having tracked MAGA and Anti-MAGA companies and effects, what Nike was doing in much of last year was hiding and deferring income losses due to sales declines.  They did this because the larger goal was to hide the impact of their branding shift. Nike didn’t want people to know how much backlash they faced, so they used every mechanism possible including inventory manipulation to avoid showing losses.


However, as with all revenue and profit hiding schemes inside large corporations (and there are many that can be used) eventually you run out of ways to hide profit losses as a result of top-line collapses.  Eventually inventories are trued up; eventually supplies need to be replenished; eventually extended -and or renegotiated- vendor payments need to be made; eventually it’s going to catch up to you.  In my opinion, this is what’s happened.

 

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Total revenue was down 38% to $6.31 billion from $10.18 billion a year ago. Sales in North America were down 46% (link)


Nike saw the COVID-19 economic contraction as a way to hide a top-line and bottom-line collapse that has very little to do with the coronavirus.


COVID-19 is their cover, not the principal cause.


Evidence to support my review found in the action that Nike takes after releasing their $790 million profit loss.  Remember, this bottom line loss is the direct result of the top line collapse.  The raw material doesn’t cost more (it’s actually less); inflation didn’t chew up their import pricing (it’s actually less); they are buying in dollars which are actually stronger; energy costs are not higher (they are actually less) and Nike has not been hurt by tariffs because Chinese devaluation of currency (beyond the tariff cost) has actually helped raise the profit equation for many importers.  This loss is all about the top line.

 

 

Ouch!

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I thought the Kaepernick ad campaign had them rolling in the dough?

 

Maybe they took a knee?

 

Lol

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5 minutes ago, Squatchman said:

  The treehouse again.

 Delving deep into the fake news once more.

So Nike didn't lose their asses in the 4th quarter?

 

 

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4 minutes ago, rippy38 said:

Lol!

 

He's just a troll.

 

 

 

No, he's a PIECE OF TROLL SHITSTAIN!!!

 

 

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11 hours ago, BeAChooser said:

While boycotts aren't really a good people's thing, maybe we should start boycotting all of the businesses that exit TV show advertising because of lefty PC politics, as well as every business that gave even one nickle to black lives matter.

What a thrilling article. Maybe it's time for bumper stickers. "Nike is going bankrupt - good riddance!"

Maybe the NFL is next.

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50 minutes ago, rippy38 said:
56 minutes ago, Squatchman said:

  The treehouse again.

 Delving deep into the fake news once more.

So Nike didn't lose their asses in the 4th quarter?

 

He's just afraid of trees... too.

 

Ha!

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7 minutes ago, Blue Devil said:

He's just afraid of trees... too.

Ha!

I haven't seen anybody in this forum accuse him of mental acuity. I'm guessing math wasn't his strong suit in school.

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nike-1.jpg

...or Not.

 

Ha!

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2 hours ago, Squatchman said:

  The treehouse again.

 Delving deep into the fake news once more.

 

2 hours ago, rippy38 said:

So Nike didn't lose their asses in the 4th quarter?

 

He squawks "fake news" one-liners at any topic that's not anti-Trump. He has made himself a meaningless nuisance here, much like the likewise-pointless and ever-ignored horse shit pic shithead posts, only less entertaining.

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Gyms are closed, it is getting too hot to jog outdoors, and there is Covid-19. This is worldwide.

Why do people buy new sneakers? Because the old ones wore out. You do not wear out sneakers unless you are seriously active.

Kaepernick has nothing to do with the decline in sales of Nikes.

Nike is not going broke.

They make good shoes, and they print the date of manufacture on them.

I am a connoisseur of used sneakers, and I still have Nikes made in 2010.

Lately I have been wearing Sperry Topsiders, and they are even MORE durable. They are not so good on the treadmill, but the gym is closed.

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7 minutes ago, XavierOnassis said:

Gyms are closed, it is getting too hot to jog outdoors, and there is Covid-19. This is worldwide.

Why do people buy new sneakers? Because the old ones wore out. You do not wear out sneakers unless you are seriously active.

Kaepernick has nothing to do with the decline in sales of Nikes.

Nike is not going broke.

They make good shoes, and they print the date of manufacture on them.

I am a connoisseur of used sneakers, and I still have Nikes made in 2010.

Lately I have been wearing Sperry Topsiders, and they are even MORE durable. They are not so good on the treadmill, but the gym is closed.

Nike should be up with all the looters stealing shoes than selling them....

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Wondered about this so checked a stock chart to see if it was reflected.

That yawner inspired me to dig a little deeper and found Nike's fiscal year ends May 31. So Q4 just ended making results probably not dissimilar to other apparel businesses through the shut down. Time will tell if Nike has a good business model by excluding patriotic Americans from their customer base.

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4 hours ago, RelictLeperedFrog said:

I will never buy anything Nike.

 

 

I switched to Hoka One One

 

Better quality anyway... no Kaepernik 

 

Hoka-One-One-Clifton-6-Lateral-Side.jpg

 

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They are going to have to lay off some woke assholes now.

 

Nike makes their shoes in Cambodia, Vietnam and China, mostly. Most sneakers are sold to younger people and gymrats.

My aerobics instructor does classes 36 hours a week and buys a pair of new sneakers every two years.

After Covid, the gyms are closed, the runners are not running and sneakers are not being worn out.

People do not vote for Kaepernick by buying sneakers. Nike is a world business. US football is  about as popular outside of the US and Canada as curling is in India and China, which it is not at all.

The premise is absurd.

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9 minutes ago, XavierOnassis said:

People do not vote for Kaepernick by buying sneakers.

People are exactly voting for Kaepernick, that is, voting against patriotic American traditions - whether they know it or not - when they buy Nike branded anything.

Big football fan friend of mine (I don't give a rat's petootie about sports) quit watching NFL games on TV when Kaepernick took the knee. He watches college ball now.

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10 minutes ago, freeman said:

People are exactly voting for Kaepernick, that is, voting against patriotic American traditions - whether they know it or not - when they buy Nike branded anything.

Big football fan friend of mine (I don't give a rat's petootie about sports) quit watching NFL games on TV when Kaepernick took the knee. He watches college ball now.

Your big football friends are a teensy minority of  customers for sneakers. If they are not running, they rarely buy sneakers.

Who TF goes into a store and casts a ballot against Kaepernick by spending $80 bucks on sneakers? Watching college football instead of NFL will not wear out your sneakers.

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