Is Nike Stock a Buy?
Nike (NYSE: NKE), one of the largest sports footwear and apparel brands in the world, faced an unprecedented crisis earlier this year as the COVID-19 virus spread like wildfire across the globe. During its fourth fiscal quarter, from March till May, around 90% of Nike-owned stores were closed for roughly eight weeks as a result of global lockdowns and movement restriction orders.
These closures threw a large spanner in the company's growth plans, but as of late June, 85% of stores had reopened in North America, while around 90% of stores in Europe, the Middle East, and Africa (EMEA) were back in operation. These temporary closures resulted in Nike reporting a 38% year-over-year plunge in revenue for its fourth quarter, as well as a net loss of $790 million.
Despite the seemingly poor results, shares of Nike have been hitting new all-time highs even as the pandemic has yet to ease in many parts of the world. Is the company able to recover from this crisis, and does this make the stock a buy?
Source Fool.com
