“Woke” shoe manufacturer NIKE just reported a massive loss – $790 million dollars to be exact.
They’re claiming the loss is coming from “COVID,” but that’s odd since their website sales were up about 75% during the shutdown.
Another clue that it might not be “COVID” related is that Nike is now looking at layoffs. They haven’t said how much staff will be axed, but they’re claiming that the layoffs aren’t due to the coronavirus – they’re saying that they’re doing it to restructure its “overburdened matrix.”
That sounds fishy.
Could it be that their “wokeness” is finally catching up with them?
It might be too early to tell, but we can definitely track it now and see where they’re headed.
The sports apparel goliath Nike as apparently taken a severe hit in its largest market, North America.
According to Raw Story, the losses weren’t small:
Nike reported a loss of $790 million in the quarter ending May 31, which translated to a loss of 51 cents per share compared with analyst expectations for nine cents per share in profit.
Revenues tumbled 38 percent to $6.3 billion following huge declines in sales in most of the world.
In North America, the company’s biggest operating region, revenues plunged 46 percent to $2.2 billion.
The reason behind the surprising hit was closures due to the Coronavirus. Nike reported that 90 percent of its stores were closed for around eight weeks. The damage was made lighter due to online sales which increased 75 percent during the quarter.
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This is a very dark day for the woke sneaker-maker.
Maybe they should whip up a new Colin Kaepernick commercial and see if that helps?
We’re certainly not suggesting this is the “end” for NIKE, but it could be their “Gillette” moment, where they realize the wokeness isn’t helping them move inventory and they return to more traditional advertising.
We’ll see what happens.
This piece was written by Missy Crane on June 26, 2020. It originally appeared in WayneDupree.com and is used by permission.
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