{"id":120316,"date":"2020-12-21T16:51:08","date_gmt":"2020-12-21T21:51:08","guid":{"rendered":"https:\/\/www.borndigital.com\/?p=120316"},"modified":"2020-12-21T16:51:11","modified_gmt":"2020-12-21T21:51:11","slug":"nike-reports-digital-revenue-spike-of-84","status":"publish","type":"magazine","link":"https:\/\/brainstation.io\/magazine\/nike-reports-digital-revenue-spike-of-84","title":{"rendered":"Nike Reports Digital Revenue Spike of 84%"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\">Need to Know<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Total revenue for Nike for the quarter ending November 30 was  $11.24 billion, a year-over-year increase of 9%.<\/li><li>Digital revenue grew by 84%, with CEO John Donahoe saying &#8220;Digital is now woven into everything we do as a company.&#8221;<\/li><li>The company benefitted from strong sales in China: revenue there rose 24%, while sales in North America, rose 1%.<\/li><li>More than 90% of Nike stores are now open, though foot traffic has declined due to safety concerns.<\/li><\/ul>\n\n\n\n<p><\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Analysis<\/h3>\n\n\n\n<p><\/p>\n\n\n\n<p>Nike has used e-commerce to its advantage this year, with the athletic apparel company posting an 84% spike in digital revenue for the quarter ending November 30\u2014the <a rel=\"noreferrer noopener\" href=\"https:\/\/brainstation.io\/2020\/09\/23\/nikes-digital-strategy-not-easily-replicated-according-to-ceo\" target=\"_blank\">third consecutive quarter<\/a> in which the company has seen digital growth of 80% or more.<\/p>\n\n\n\n<p>Nike&#8217;s total revenue for Q2 was $11.2 billion, well ahead of the $10.55 billion expected, representing a 9% year-over-year increase. The company has benefitted not only from strong e-commerce but also from substantial sales in China, where revenue for Nike rose 24% over the quarter. By comparison, revenue in North America, Nike&#8217;s largest market, rose just 1%.<\/p>\n\n\n\n<p>&#8220;I\u2019ve said it before: These are times when strong brands get stronger,&#8221; Nike CEO John Donahoe said on Nike&#8217;s earnings call. &#8220;The structural tailwinds we\u2019re seeing, including permanent shifts towards digital, athletic wear, and health and wellness continue to offer us incredible opportunity.&#8221; <\/p>\n\n\n\n<p>Indeed, Nike has benefitted from a lockdown that led many individuals towards increased investments in health and wellness products, as at-home workouts became the norm, and funds that would have otherwise been spent on gym memberships or travel and leisure were redirected elsewhere. In order to capture the fitness-at-home audience, Nike unveiled a digital concept store, <a href=\"https:\/\/brainstation.io\/2020\/07\/09\/nike-unveils-new-digital-focused-concept-store-nike-rise\" target=\"_blank\" rel=\"noreferrer noopener\">Nike Rise<\/a>, in July. The company has also invested additional infrastructure in SNKRS, its specialty sneaker-focused app; Nike hosted its first-ever live sneaker &#8220;drop&#8221; on the app earlier this year, for the Air Jordan 4 PSG; the product sold out within two minutes.<\/p>\n\n\n\n<p>&#8220;Digital is now woven into everything we do as a company,&#8221; Donahoe said. &#8220;It\u2019s how we operate and prioritize, from how we engage with members, to how we operate our supply chain, to how we serve consumers in the marketplace.&#8221;<\/p>\n\n\n\n<p>While more than 90% of Nike stores are now open, the company said it continues to see reduced foot traffic due to COVID-19; its bottom lines have therefore benefitted from an online sales experience that involves fewer sales and discounts. &#8220;Digital is open seven days a week, 24 hours a day,&#8221; Donahoe said. &#8220;And what\u2019s fascinating to watch is the consistency of the growth across digital. We have increasing evidence that when a consumer wants to get something, if physical retail is closed, they\u2019re coming to us digitally, and our ability to reach consumers digitally in a variety of manners is just getting better and better as this pandemic goes on.&#8221;<\/p>\n\n\n\n<p>Nike is forecasting double-digit percentage growth for its fiscal 2021, as well as healthier profit margins, due to fewer markdowns and better inventory management. <\/p>\n\n\n\n<p> <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Need to Know Total revenue for Nike for the quarter ending November 30 was $11.24 billion, a year-over-year increase of 9%. Digital revenue grew by 84%, with CEO John Donahoe saying &#8220;Digital is now woven into everything we do as a company.&#8221; The company benefitted from strong sales in China: revenue there rose 24%, while [&hellip;]<\/p>\n","protected":false},"author":76318,"featured_media":111253,"menu_order":0,"template":"","meta":{"_acf_changed":false,"footnotes":""},"categories":[13,3397],"tags":[3436],"magazine-region":[],"magazine-series":[],"magazine-topic":[],"class_list":["post-120316","magazine","type-magazine","status-publish","has-post-thumbnail","hentry","category-News","category-retail","tag-nike"],"acf":[],"_links":{"self":[{"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine\/120316","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine"}],"about":[{"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/types\/magazine"}],"author":[{"embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/users\/76318"}],"version-history":[{"count":0,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine\/120316\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/media\/111253"}],"wp:attachment":[{"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/media?parent=120316"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/categories?post=120316"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/tags?post=120316"},{"taxonomy":"magazine-region","embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine-region?post=120316"},{"taxonomy":"magazine-series","embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine-series?post=120316"},{"taxonomy":"magazine-topic","embeddable":true,"href":"https:\/\/brainstation.io\/wp\/api\/wp\/v2\/magazine-topic?post=120316"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}