Amid so much negative business news, it is always hopeful that there is some positive. Nike has shot up 9% on Wall Street after announcing that its sales have beaten expectations thanks to the fact that Online orders have offset the decline in China.
The company reached sales of $ 10.1 billion in the quarter ended February 29, a period that included closures across China, against a consensus estimate of $ 9.6 billion.
Although Nike's latest results do not give a complete picture of the impact of the disease, as its fiscal third quarter only lasted until February, markets have clearly viewed it positively.
"At a time when people were confined to their homes, we moved quickly to take advantage of our digital app ecosystem and Nike's network of expert coaches"said CEO of sportswear giant John Donahoe.
Digital sales grew 36% in the third fiscal quarter. In ChinaThese sales increased more than 30%, but overall sales in the region fell 5% due to store closings amid the virus outbreak.
The epidemic forced Nike to temporarily close stores to help contain its spread in China, where it was first detected late last year. The company has now closed stores in Europe and the United States, where the virus is spreading rapidly.
Nike said that 80% of its stores in China have already reopened, while expecting sales for the current quarter to remain stable in the region.