A man wearing a face mask passes a Nike store in the central business district, Beijing, China, on February 17, 2020.
Andrea Verdelli | Getty Images
Shares of Nike fell on Friday after the company reported mixed earnings in the late third quarter on Thursday and confirmed it was laying off employees.
Shares fell nearly 4% at noon. The stock has gained over 95% in the last year and has a market value of 217 billion dollars.
Nike did not disclose job cuts in its earnings report on Thursday, nor did it appeal to investors. The layoffs were first reported by The Oregonian, which covers the Portland sneaker company.
Nike said the discounts follow the layoffs that began last summer. As of May 31, 2020, Nike has employed approximately 75,400 workers worldwide, according to a file with the Securities and Exchange Commission.
In a prepared statement, Nike was “focused on changing resources and creating the capacity to reinvest in our growth areas with the highest potential.”
“We are building a flatter, more agile company and transforming Nike faster to define the market of the future,” he said.
On Thursday, the sportswear retailer said its revenue fell 10 percent year-over-year in North America in the third fiscal quarter ended Feb. 28, as outstanding ports delayed deliveries. This meant that the goods arrived weeks later at their own stores and those of their wholesale partners, such as department stores and sporting goods stores, and increased the risk of them falling off the shelf.
Nike said sales at its stores in Europe, the Middle East and Africa fell during the quarter due to pandemic closures and restrictions.
“The good news here is that supply chain problems will disappear in the coming quarters, while Europe will reopen over time as the vaccine continues to be launched,” Jefferies analyst Randal Konik said in a statement. research. Konik estimates that Nike owns shares with a target price of $ 140.
Nike has highlighted highlights such as growing its direct business to consumers, boosting China and strong online sales. The company said it reached its first quarter with $ 1 billion in online sales in North America, while consumers picked up new sneakers and training clothing during their time at home. Sales rose 51% in Greater China. And the company said it expects a similar resurgence in sales as other countries recover from the pandemic.