For the quarter ended May 31 the Beaverton, Ore., company reported a net loss of 51 cents a share, compared with net income of 62 cents in the year-earlier quarter. Shares outstanding fell 3.2% to 1.56 billion.
Revenue was $6.31 billion against $10.18 billion a year earlier.
Analysts surveyed by FactSet were expecting the company to report a GAAP loss of 8 cents a share on revenue of $7.3 billion.
At last check Nike shares were trading 3.5% lower at $97.90. They closed the regular Thursday session up 1.3% at $101.40.
Digital sales rose 75% in the quarter and accounted for 30% of total revenue, Nike said.
Across North America and the Europe-Mideast-Africa and Asia-Pacific-Latin-America regions, some 90% of Nike-owned stores were closed for roughly eight weeks in the quarter in response to the coronavirus, the company said in a statement.
As of now 90% of its stores worldwide are open: some 85% are open in North America, 90% in EMEA, and almost all in Greater China. In APLA 65% are open or operating under reduced hours.
Fourth-quarter gross margin narrowed by 8.2 percentage points to 37.4%. Higher full-price average selling prices were more than offset by higher product costs, bigger reserves for obsolete inventory and other factors.
Selling and administrative expense fell 6% to $3.2 billion, including a $178 million increase in bad-debt expense, Nike reported.
Demand-creation expense - advertising and promotion - dropped nearly a fifth to $823 million "as retail and brand marketing [spending] was shifted as sporting events were canceled or delayed due to covid-19," Nike said.
Nike did not provide guidance for the fiscal first quarter, but Wall Street, via the FactSet survey, is expecting a GAAP profit of 45 cents a share on revenue of $9.71 billion.