The Secret to Nike's Blowout Quarter
It's a hard time to be a consumer-facing company.
Stores were closed for several weeks during the lockdown, and even today traffic is down broadly as shoppers avoid crowded spaces during the coronavirus pandemic. Meanwhile, a spike in unemployment means millions of Americans have less money to spend, and millions of others are insecure about their jobs. Those that do have some discretionary income have focused it on areas like real estate, a new car, or home improvement to adapt to life during a time of social distancing.
Nike (NYSE: NKE), however, bucked all those headwinds in its latest earnings report, crushing estimates on flat revenue growth and an 11% increase in profits. Much attention has been paid to the 82% jump in digital sales the sportswear giant showed off as spending habits shifted from stores to online, but there's one long-term driver that's shored up the company's business behind the scenes.
Source Fool.com
