How the Coronavirus May Cost Nike $3.5 Billion in Sales This Quarter
Pummeled by an abrupt decline in global retail demand resulting from the COVID-19 pandemic, sneaker and sportswear titan Nike (NYSE: NKE) may suffer a $3.5 billion drop in revenue in its current fourth quarter of fiscal 2020, analysts at investment banking company Cowen revealed on Monday.
According to Reuters, Cowen sees a projected sales drop for Q4 (which ends in May) of 34%. The investment bank estimates this will result in a loss per share of $0.04. For reference, the athletic apparel maker generated $0.62 in earnings per share in the fourth quarter of fiscal 2019.
Nike is battling the effects of COVID-19 on a number of fronts. The company is losing valuable marketing and promotional opportunities in its biggest market, the U.S., as major sporting cycles like the NBA season are suspended.
Source Fool.com
