Nike lost $5 billion in a single quarter! Jordan's sales are bucking the trend

Nike INC (NKE.N) warned on Friday it would cut jobs as the world's largest footwear maker ramps up efforts to sell directly to customers through its online and retail channels, Reuters reported. Nike reportedly tried to make up for the loss offline through online sales, which surged 75 per cent during the reporting period but accounted for only 30 per cent of overall revenues as weak sales at most brick-and-mortar stores dragged down results.

According to the Securities Times, Nike is planning to transfer the inventory accumulated during the outbreak to digital channels for promotion. Nike notes that "in Greater China, it has worked." In fy2020, Nike's digital business grew 49% year-on-year, with double-digit growth in all regions. In the fourth quarter of fiscal 2020, digital revenue grew 79% year over year, accounting for about 30% of total revenue

Matt Friend, Nike's executive vice President and chief financial officer, said, "The accelerated development of digital technology is not only a reflection of the short-term challenges facing physical retail,Wholesale Cheap Jordans but also a sign of a strategic shift in future new markets." The company had earlier set a target of 30% digital sales by fiscal year 2023.

According to the NBA, while Nike sales have been noticeably affected by the outbreak, sales of the Jordan brand have bucked the trend, thanks to Jordan's documentary "The Last Dance."

Qiaodan's sales are expected to grow by more than 50 percent in fiscal year 2020, bringing in nearly $1 billion in revenue, with women playing an important role. In the past year, The Jordan brand's wholesale sales reached $3.6 billion and retail sales reached $7 billion. And that doesn't include Jordan brand sales in the secondary market.