Nike Inc said on Thursday store closures across the globe will hurt its retail and wholesales businesses in the fourth quarter, even as it ramps up its e-commerce capabilities to address increased online orders amid the Covid-19 pandemic.
The sportswear maker forecasts a hit to its fourth-quarter financials in all the geographies where its products are sold, as only 5% to 40% of Nike-owned stores are open there.
However, the company said all Nike-owned stores are open in China, while more than 95% are open in South Korea, some with reduced hours. It added that traffic remains below prior-year levels.
The company also said it is seeing increased new member acquisitions and the strong digital demand is partly offsetting declines in its owned stores and wholesale channel.
Nike has been reopening stores in more than 15 countries including Germany, France, Brazil, and the United States.
Shares of the company fell marginally in extended trading.