Author:  Sha Lajiang

Source:  GPLP

Nike (NKE. NYSE), a sports apparel giant, fell for days. On March 18, the share price of Nike fell to $60.00, 43.06% lower than its highest price since 2020 of $105.38.

According to Crowen report of American investment bank, the sales volume of Nike in the fourth quarter in 2020 will drop by 34%, with a loss of about $3.5 billion.

At the same time, the report said the cause of the damage is the current closure of a large number of stores around the world, and the impact of the NBA League lockout. The closure of stores and the impact of the NBA season have led to a direct and significant decline in Nike’s sales during this period.

As an important sales area of Nike, the Chinese market has also been hit hard in 2020. In late March, Nike will release its financial report for the third quarter of 2020 as of the end of February 2020. Nike has issued a financial warning for its China business. In early February, nearly half of Chinese stores were temporarily closed, which had a significant impact on Greater China’s performance.

Nike currently has about 750 stores around the world, but more than half of its offline stores have been temporarily closed. On March 15, Nike announced the closure of about

384 offline stores in the United States. On March 16, Nike announced the closure of offline stores in Canada, Western Europe, Australia and New Zealand, which lasted at least until March 27.

With a large number of offline stores around the world temporarily closed, Nike is in a greater sales crisis. In addition, as the official sponsor of NBA, NFL and MLB, Nike’s

sales crisis is also intensified when the international sports events are suspended.