Nike has reopened almost all stores in China and South Korea
Nike (NKE) has announced that 100% of its company-owned stores and over 95% of its partner stores in China and South Korea are open — though some are operating on reduced hours.
The majority of Nike stores have been closed since mid-March in response to the COVID-19 outbreak. During that time, Nike, like many of its competitors, has relied on the digital space to pull in revenue.
“We are operating in a dynamic environment which will continue to evolve. Furthermore, the full extent of the impact of the COVID-19 pandemic on Nike’s operational and financial performance remains uncertain and will depend on many factors outside of Nike’s control,” the sportswear giant said in a statement.
Nike President and CEO John Donahoe noted however that he’s “encouraged by the recovery we are seeing in Greater China and South Korea as we continue to deepen our connection to consumers.”
“Even more so, consumers around the world are recognizing the need for an active and healthy lifestyle, and sport is now more meaningful than ever. With our strong digital foundation, brand momentum and financial position, we believe this will be a catalyzing moment that strengthens Nike’s long-term future,” he said.
The Nike flagship facade in New York City.
The swoosh brand also disclosed that it has opened some stores in North American and Europe.
“We have gradually reopened a small number of Nike-owned stores across North America, EMEA [Europe, the Middle East, and Africa] and APLA [Asia Pacific and Latin America] as states and countries within each of these geographies ease quarantine measures and begin marketplace recovery. Specifically, store reopening has begun in over 15 countries, including Germany, France, the Netherlands, Brazil and the United States. As of today, roughly 40 percent of our Nike-owned stores in EMEA, 15 percent in APLA and 5 percent in North America, are open with some operating with reduced hours. Our wholesale partners in these countries have also begun to re-open stores.”
Nike says that it remains focused on prioritizing the health of its employees and consumers and will continue to follow the direction of local health authorities and governments.
Cowen Equity Research noted on Thursday that Nike’s digital capabilities and expanding consumer loyalty would prove to be the accelerator into FY21 and FY22 recovery phases. Cowen rates the stock as Outperform and says its earnings recovery will be $3+ in FY22.
Reggie Wade is a writer for Yahoo Finance. Follow him on Twitter at @ReggieWade.
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