Certainly, in recent months, Nike has been highlighted as one of the companies that had best resisted the crisis that has been experienced globally for several months. However, neither the sports giant is unbeatable in a context like the current one.
On Thursday, the US brand released the financial results for its fourth quarter and full fiscal year, recognizing a significant drop in sales, which has impacted the value of the company in the stock markets and, apparently, also within its structure.
A sensitive clipping
The above because a recent report indicates that Nike is making a personal cut inside the organization, this after having given the financial report.
According to information from Complex, this would be disclosed to employees through an email – to which the outlet had access – in which CEO John Donahoe would give details of the decisions made. Although no specifications were given on how many employees and which departments would be affected.
However, everything indicates that the cut would take place in two blocks, the first one would be announced next July, while the second round of layoffs is expected in the fall.
According to what was published and based on the latest reports from Nike, it is speculated that workers in the physical retail stores, distribution centers, as well as in the maquila facilities of the sports firm are among those laid off.
Nike numbers confirmed his concern
Last month, when we all saw Nike as a symbol of strength given its resistance up to that point to the global crisis, the brand announced its strategy of reopening stores, but at the same time expressed its concern because they identified symptoms that the Business was not quite right.
These concerns were confirmed on Thursday when they released their financial results, which indicated that during the period that ended on May 31, they obtained income of 6,310 million dollars, a drop of 38 percent compared to what was reported by a year before.
Furthermore, it reported a net loss of 790 million or 51 cents a share compared to 989 million, or earnings of 62 cents a share, in 2019.
For the full year, Nike said it had sales of $ 37.43 billion, down from the $ 39.117 billion reported last year, something the firm attributed to the drop during the fourth quarter in which its business plummeted. 38 percent (period in which the COVID-19 pandemic broke out).
Today, the financial report and, probably, the news given to the connector about the alleged cut, lead the shares of the swoosh brand to fall more than 5 percent on the NYSE index of the New York Stock Exchange.
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