From its humble beginnings when co-founder Phil Knight was selling track shoes out of the trunk of his car, Nike (NYSE: NKE) has come a long way to become the behemoth athletic brand that it is today. The company is a global leader in the sports footwear and apparel industry, with fiscal year 2019 sales in excess of $39 billion. But with the complete stoppage of professional sports in most of the world, Nike has had to find ways to succeed and stay relevant in the absence of some of its biggest marketing opportunities.
After reaching a low this year of $62.80 on March 23rd, the stock has rallied more than 59% since then to make up most of its losses due to the coronavirus outbreak. Much of this has to do with retail channels slowly reopening all over the world. On May 14th, Nike announced that 100% of its company-owned stores in Greater China were open. In the quarter ended February 29th, Greater China sales fell 4% versus the prior year on a currency-neutral basis. This is after 22 consecutive quarters of double-digit growth. Investors are clearly happy that the company is back in business in this extremely important region.