Here’s the Slam Dunk in Nike’s Grim Earnings Report
When Nike (NYSE: NKE) reported a 38% revenue decline in the fiscal 2020 fourth quarter, I'm sure more than one investor cringed. But here's the good news: It isn't indicative of the company's long-term future. With stores temporarily shut in North America and Europe due to the COVID-19 pandemic, a drop in revenue wasn't a surprise.
We'll have to be patient, as Nike -- like most other retailers -- won't recover overnight. The seller of athletic clothing and gear said it expects revenue to decrease in the first half of the fiscal year 2021, and then climb in the second half. For the full fiscal year, the company forecasts sales may be flat or higher.
But there is a slam dunk in the latest earnings report that should lead to even more game-winning points: a stronger-than-ever focus on digital growth.
Source Fool.com
