nike e commerce revenue

2021/05/21

It also is testing a new concept that debuted earlier this year inGuangzhou, China, called "Nike Rise," where visitors can use their Nike app once inside the space to sign up for local soccer matches and running clubs., Even as most of its stores were reopened, Nike's digital sales soared 82% during the fiscal first quarter, pushing revenue ahead of analysts' estimates., "Nike's decision to evolve into a digital-first organization has proved prudent, as the crisis continues to push consumers toward the digital channel,"Susquehanna analyst Sam Poser said. As a Premium user you get access to background information and details about the release of this statistic. "Digital is fueling how we create the future of retail. Globally, the retailer drove a 25% currency-neutral growth in its digital channels sales and digital is now 21% of Nikes total revenue, up from 19% of total revenue the year prior. Market volume, market growth and all monetary figures at store level refer to the annual e-commerce net sales after the deduction of returns.For additional information and a definition of the product categories please visit our methodology page on ecommerceDB.com. To make the world smarter, happier, and richer. Should Growth Investors "Just Do It" and Buy Nike Stock?

The margin expansion and revenue boost also allowed Nike to raise its dividend for the 19th consecutive year, despite all of the challenges the pandemic presented. Cost basis and return based on previous market day close. "Digital momentum is sticky. q2 earnings Currently, you are using a shared account. Before the pandemic, said Donahoe, it would have taken approximately 40 days to move product from Asia to North America. This quarter, shipping times worsened to 80 days, or double the brands average. That bit about NIKE Direct sounded like a clue to us.

With so much disruption to the iconic brand's business model, it had to be flexible and creative to continue delivering for shareholders in the new environment. For example, he can take his cloud computing know-how from ServiceNow, his payments expertise from PayPal, and his marketplace prowess from eBay to drive success for the sports apparel company. OK, but exactly what is Nike doing to get these numbers? With that in mind, a lasting shift to digital business could create a permanent boost to the company's profits. Digital sales were $2.4 billion for the second quarter of fiscal 2021 compared to $1.3 billion for the second quarter of fiscal 2020. We did, however, notice this item in the narrative discussion that preceded the table disclosures: The Company's NIKE Direct operations are managed within each NIKE Brand geographic operating segment.. Vogue Business Fashion's Global Perspective, Designer and influencer Alexa Chung to close her fashion label, Bleak outlook for luxury sector in global lockdown, Nike revenue dips 1% as sales slow in China, US, Index: Brands are better prepared for a second lockdown, Enter your email to stay updated with newsletters, event invites & promotions via email from, acquiring digital fashion marketplace RTFKT. Indeed, Nike has been investing in digital shopping long before the pandemic, often as a first-mover in new technology.

Thats informative unto itselfrevenue up in all four regionsbut it doesnt tell us anything about e-commerce versus other sales channels. Learn more about how Statista can support your business. Is It a Buy? Our third quarter results demonstrate Nikes ability to navigate through volatility, while continuing to serve consumers directly and digitally, at scale, said Friend. ", Nike shares were up about 9% Wednesday morning, hitting an all-time intraday high of $130.38., Before the Covid-19 crisis, Nike had set a goal of having its e-commerce sales represent 30% of total revenue by 2023. "And there is quite a short list of entities that have been able to achieve that.

Still, Nike expects delivery delays will continue, with transit times particularly high in the key North American market. While this may not seem significant to some, when dissecting the growth, it becomes much more interesting. Still, that was an improvement on the earlier period. So we hopped over to the Management Discussion & Analysis section, and found considerably more detail about that part of the business. The brand is banking on digital sales and pushing consumers to its app, loyalty program and buy-online-and-pick-up-in-store features. Nike invested in a sneaker launch app SNKRS as early as 2015 and adopted curbside pickup and online-offline product-availability-integrated app in 2018. You can only download this statistic as a Premium user. Nikes peers are also likely to be hurt by Vietnam factory closures as well. Nike sales rose 5 percent in the three months ended 28 February, outpacing the previous quarters 1 per cent growth, according to a statement on Monday. What's the Lowest Your Social Security Increase Will Likely Be? A Division of NBCUniversal. On a currency-neutral basis, NIKE Direct revenues increased 30 percent, driven by digital sales growth of 80 percent, which more than offset comparable store sales declines of 4 percent primarily due to reduced physical retail traffic, in part resulting from safety-related measures in response to COVID-19. Cumulative Growth of a $10,000 Investment in Stock Advisor. Lululemon has said that 20% of its second-half 2021 inventory is delayed because of factory closures in Vietnam. The Motley Fool has a disclosure policy. Nikeis proving during the pandemic that its big bets in digital are paying off, as consumers are turning to its website and app in record numbers to shop for sneakers and workout apparel., For the past few years, the company has been pulling away from department stores and other wholesale outlets, instead investing inopening its own smaller neighborhood stores, called "Nike Live," to serve as pickup hubs for online orders, alongside multilevel flagship locations dubbed "House of Innovation." Except, the $4.31 billion in that line item still combines both e-commerce and company-owned stores. The sportswear giant alleges streetwear resale marketplace StockX is blatantly freeriding on the back of Nikes trademarks by selling NFTs featuring digital renders of Nike goods. After years of struggling, Mattels attempt to turn the business around seems to be bearing fruit. Facebook: number of monthly active users worldwide 2008-2022, Smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q1 2022, Profit from additional features with an Employee Account.

US, Europe slap Russia with luxury sanctions to target oligarchs, Chanel, LVMH, Kering add to brands closing Russia stores, Ralph Lauren sales rise as metaverse investments lure new shoppers. Down 36%, Investors Should Buy the Dip on This Best-In-Class Retail Stock, 1 CFO Isn't Worried About the Economy (Yet). It didn't break out the exact percentage, but said online sales were more than 30% of total sales during the latest quarter., Now, it's on track to break 50% in coming years., "Theacceleratedconsumershifttowarddigitalisheretostay," CEO John Donahoe said Tuesday. Advertising and promotions expenses spiked 20 per cent in the quarter to $854 million. New, Insights into the worlds most important health markets, Figures and insights about the advertising and media world, Everything you need to know about the industry development. Why Merrell is expanding beyond hiking shoes with its new trail running line, The new C-suite: Retailers like Nordstrom and CVS are personalizing their org structures to meet industry shifts, Brands and agencies are turning to Amazons ad products as other platforms flounder, The resiliency is terrific: Why water bottle sales are on fire, Ive always been obsessed with the user shopping experience: How Julie Bornstein plans to transform shopping on Pinterest, Mattel's booming IP business helped swing it to a profit, PepsiCo bets on energy drinks and low-sugar beverages as it evolves its portfolio, Bed Bath & Beyond CEO exits as sales decline 25%. (September 21, 2021). We want to hear from you. Use Ask Statista Research Service. In response, the Nike team is moving production away from Vietnam to Indonesia and China and leveraging airfreight when possible.

Nike said revenue accelerated in the third quarter, beating analysts expectations, led by its own retail stores and digital channels, particularly across North America. The Motley Fool owns shares of and recommends Nike, PayPal Holdings, and ServiceNow, Inc.. Businesses had to engage in some deft footwork last year to retool their operations amid the disruptions of coronavirus. Got a confidential news tip? *Average returns of all recommendations since inception.

Quick Analysis with our professional Research Service: Toplists & Rankings: Best Employers Portal, To view this statistic you need one of our Corporate Solutions, which includes the following benefits, Show sources information So we kept reading, and finally found this paragraph tucked away on Page 28: On a reported basis, NIKE Direct revenues represented approximately 40 percent of our total NIKE Brand revenues for the second quarter of fiscal 2021 compared to 33 percent for the second quarter of fiscal 2020. There you have it.

Accessed July 30, 2022. https://www.statista.com/forecasts/1218320/nike-revenue-development-ecommercedb, ecommerceDB.com. Demand in North America particularly online drove growth, with sales up 10 per cent, offset by a 4 per cent decline in Greater China.

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Making the world smarter, happier, and richer. All Rights Reserved. Calculated by Time-Weighted Return since 2002. Even total overhead and sales expenses declined by 1.7 percent an impressive feat of cost management, considering all the new expenses firms have had to pay as part of operating during a pandemic. He brought with him an impressive resume and deep understanding of what it takes to create a successful digital offering.

Digital sales grew by $1.1 billion in the most recent quarter (from $1.3 billion one year ago to $2.4 billion today), and if it werent for that e-commerce growth, total revenue for Nike would have declined from the year-ago period. As one might guess from the name, NIKE Direct is the firms business that sells directly to consumers, both through e-commerce sales and company-owned stores. Digital sales soared 59% year over year with double-digit growth in every single geography. ", "Nike's digitaltransformationstrategyisnoteasilyreplicated," he added. Profit from the additional features of your individual account. Just a quarter earlier, Nike reported a surprise loss of $790 million, as companies were canceling orders of its merchandise and stores in key markets including North America and China were temporarily shut., "Nike is a better, more profitable company today than it was a year ago,"Deutsche Bank analyst PaulTrussell said. Nike is almost a data-first company, because theyre able to provide the correct product to the right consumer at the right time, in the most convenient way [through targeting], said Jessica Ramirez, a retail analyst at investment research firm Jane Hali & Associates.

E-Commerce net sales of nike.com from 2014 to 2022 (in million US-Dollar) [Graph]. September 21, 2021.

Consumers shift to digital plays to Nikes advantage and our consumer-direct acceleration strategy is capitalizing on this marketplace transformation. Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Even more encouraging, these numbers would have actually been better if not for global container shortages that affected inventory shipments. Incorporated in this definition are purchases via desktop computer (including notebooks and laptops) as well as purchases via mobile devices such as smartphones and tablets.The following are not included in the e-commerce market: marketplace platforms only, digitally distributed services (e.g. Get features designed for better insights. Research financial & accounting data like never before. Marketplace demand continues to significantly exceed available inventory supply.. Statista. Nike proved it wasnt immune to supply chain issues last fall, when it warned that factory closures due to Covid-19 and other delays could cause problems with deliveries.

Nike [is trying] to future proof their brand.. Consumers are hungry for home-gym accessories and sweat-wicking clothing during the pandemic. Each direct-to-consumer sale gives Nike greater visibility into consumer data, allowing it to control inventory more effectively. Walmart announced Wednesday it plans tohire 20,000 seasonal employees during the holidays to help pack and ship online purchases in its fulfillment centers. Given how Nike outperformed many of its competitors during the pandemic, Donahoe seemed to handle his tumultuous first year quite well. Please create an employee account to be able to mark statistics as favorites. "E-Commerce net sales of nike.com from 2014 to 2022 (in million US-Dollar)." Was that part of Nikes strategy? On Thursday, Nike announced 16% year-over-year growth in total revenue and 40% growth in North American digital sales.

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Meanwhile70% of running company On Holdings productions are in Vietnam. But it has already exceeded that. "E-commerce Net Sales of Nike.Com from 2014 to 2022 (in Million Us-dollar). Now, the companys efforts are focused on achieving long-term growth. Why? In other words, Nike could have sold even more merchandise if it had the inventory available to do so. Comments, questions or feedback? Leading fashion e-commerce companies worldwide 2021, by market cap, Leading fashion e-commerce companies worldwide 2020-2022, by EV/EBITDA, Leading fashion e-commerce companies worldwide 2019-2021, by CAGR, Leading fashion and apparel websites worldwide 2022, based on visit share. American multinational sport clothing brand Nike store seen in Hong Kong. The outperformance in digital is not just welcomed from a revenue standpoint. Thats brought it closer to its customers, Donahoe said. .

However, strict Covid-19 regulations in Vietnam where half of Nikes footwear is currently manufactured took their toll this quarter, and mean that future stockout strain is likely for the holiday season. (Nike also has a wholesale operation where it sells its gear to other retailers like Footlocker ($FL), for example.). A shift from wholesale distribution to digital sales affects the company's margin profile as well. Nikes strong results this quarter show that our consumer direct acceleration strategy is working, as we invest to achieve our growth opportunities, said Nike CEO John Donahoe in a statement. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. Inventories rose 15 percent due to supply chain disruptions. Not every company has the ubiquitous brand, deep pockets, and strong leadership Nike possesses, but most importantly, the global powerhouse leveraged those advantages to prioritize e-commerce and come out ahead in the past year. Learn More. Sign up to our newsletter for a truly global perspective on the fashion industry. Then you can access your favorite statistics via the star in the header. Nike enjoys a gross profit margin roughly 10 percentage points higher for digital sales than for wholesale. Discounted offers are only available to new members. Let's dive into the operational changes Nike made, and how they could position the company for an even stronger future. Like Nike, Lululemon has watched its digital business explode: Its online sales soared 157% during the latest quarter., To be sure, companies that sell workout apparel like Lululemon and Nike are in many ways just finding themselves in the right spot at the right time. The company's priorities are its three pillars: sparkling water, energy and sports drinks, along with ready-to-drink coffee. At its new Nike Rise concept store in Seoul, for example, the retailers is testing radio-frequency identification for in-store product comparison. From a company demand perspective, Nike CFO Matthew Friend expects the digital evolution to boost key growth drivers such as women's apparel. One firm taking the right steps seems to be Nike ($NIKE). See Figure 2, below. And Friend "continues to see the value of a more direct, digitally-enabled strategy fueling ever greater potential over the long term.". Get full access to all features within our Corporate Solutions.

Nike said its women's apparel sales were up almost 200% during the latest quarter., But as more sales move online and out of wholesale channels, Nike is finding a way to make those digital sales more profitable a feat that many in retail grapple with. To receive the Vogue Business newsletter, sign up here. Revenue up 8.8 percent from the year-ago period to $11.24 billion; pre-tax income up 16.5 percent to $1.45 billion. Chart. Overall, Nike's ability to successfully transform its business model amid the COVID-19 pandemic is admirable. Sue Gove, an independent director on the Bed Bath & Beyonds board and chair of the board's Strategy Committee, has been appointed as the interim CEO. Nike or Lululemon Athletica: Which Stock Is a Screaming Buy Right Now?

Join us at the Modern Retail DTC Summit, where well dive deep into what it means to be a DTC brand, speaking with leaders in the space about how their business models have shifted and what theyre focusing on now. Despite these investments in digitalized supply, however, the retailer is showing the first signs of supply troubles after subsequent factory closures, first in Indonesia and now in Vietnam. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. In its latest earnings, PepsiCo emphasized its commitment to shape its beverage portfolio to reflect modern consumers' lesser-than-sweet tastes. Expenses for shipping and handling returns tend to weigh on total sales, driving profits lower., CFO Matt Friend said Nike typically earns roughly 10 more points toward its gross margins on digital revenue versus wholesale revenue, finding customers on its website are more loyal, allowing Nike to lower customer acquisition costs and increase its return on ad spending., "Whilewewillneedtocontinueinvestmentstoexpanddigitalfulfillmentcapacity,wecanimproveoperationalefficiency throughpredictivemodelingtools,data-drivenmemberpersonalizationandinventorystaging," he said., Nike's net income during the latest period ended Aug. 31 grew to $1.52 billion, or 95 cents per share, from $1.37 billion, or 86 cents per share, a year earlier. If you are an admin, please authenticate by logging in again. Despite massive supply chain delays after factory closures in Indonesia and Vietnam, Nikes digital sales continue to drive overall revenue growth. Deft footwork, indeed. To use individual functions (e.g., mark statistics as favourites, set ", Nike, which has a market cap of $199.4 billion, has watched its shares rally more than 15% this year.. Please do not hesitate to contact me. Market-beating stocks from our award-winning analyst team. Show publisher information As management itself says, digital sales growth more than offset any physical store sales declines.

Try our enhanced Excel Add-in. Third-quarter sales hit $10.9 billion, with direct retail (including Nike stores and its e-commerce site) up 15 per cent to $4.6 billion and digital sales up 19 per cent. Still, profit fell 4 per cent for the quarter to $1.4 billion on higher expenses and taxation. In, ecommerceDB.com. [And] Nike has embraced the structural shift of consumer shopping habits from traditional brick-and-mortar to digital and will, in our view, continue to capitalize on this shift. travel tickets), online stores dedicated to digital media downloads or streams as well as online stores dedicated to B2B markets nor sales between private persons (C2C). Friend said annual sales will increase by mid-single digits over last year, but declined to provide further guidance, given the latest Covid lockdowns. Today, were in a stronger position relative to our competition than we were prior to the pandemic, said Nike President and CEO John Donahoe. ecommerceDB.com. Budrul Chukrut | SOPA Images | Getty Images, Outlook for Nike positive, with less competition out of pandemic: Analyst, Nike's digital sales soared 82% during the fiscal first quarter, Even as most of its stores were reopened, Nike's digital sales soared 82% during the fiscal first quarter., The company is on track to have its digital sales represent 50% of total revenue in coming years., Nike said its online sales are more profitable than sales in wholesale channels, like department stores., "Digital is fueling how we create the future of retail," CEO John Donahoe said.. Enter your email to stay updated with newsletters, event invites & promotions via email from Vogue Business.

Outside of whats going on with supply chain headwinds, we still see the brand be strong with consumers and within the market, said Ramirez. In the fiscal 2021 third quarter, Nike did see its gross profit margin expand 130 basis points to 45.6%, and it also delivered a 14.0% net income margin versus 8.3% in the prior-year period. So thats another retailer making the pivot to e-commerce. Wed written before about retailers making a pivot into e-commerce sales since physical stores are no longer reliable sales channels.

", ecommerceDB.com, E-Commerce net sales of nike.com from 2014 to 2022 (in million US-Dollar) Statista, https://www.statista.com/forecasts/1218320/nike-revenue-development-ecommercedb (last visited July 30, 2022), E-Commerce net sales of nike.com from 2014 to 2022, Global: e-commerce revenue from 2017 to 2025, by segment, Global fashion e-commerce market size 2021-2025, Worldwide online fashion retail revenue 2021-2025, by segment, Online fashion retail revenue change worldwide 2019-2025, by segment, Fashion e-commerce users worldwide 2021-2025, by segment, Online fashion retail revenue worldwide 2019-2025, by region, Online fashion retail revenue worldwide 2022, by country, Fashion e-commerce revenue in Asia 2021-2025, Fashion e-commerce revenue in North America 2021-2025, Fashion e-commerce revenue in Europe 2021-2025, Fashion retail sales channel share worldwide 2022, by region, Fashion: top 5 online stores worldwide in 2021, by net sales, nike.com: E-Commerce net sales from 2014 to 2022, zara.com: E-Commerce net sales from 2014 to 2022, asos.com: E-Commerce net sales from 2014 to 2022, zalando.de: E-Commerce net sales from 2014 to 2022, International site traffic on top fashion websites in select countries worldwide 2021, Increase of site traffic on top fashion websites in select countries 2021, Global online fashion shopping cart abandonment rate 2021, by type, EU consumers who use mobile apps for online shopping purposes 2021, E-commerce penetration rate among active Gen Z users China in 2020, by platform, Global consumers reasons for not liking online shopping 2021, Global consumers reasons for returning clothes bought online 2021, Main online impulse purchases worldwide 2022, by gender, Fashion purchases of consumers in 2020 and 2023, by channel, Usage of online reviews to help with fashion purchases 2021, by country, Share of shoppers buying clothes online after store visit in Europe 2021, by country, Ranking: Top 5 URLs of Amazon.com, Inc., by first-party net sales in 2020, United States: Top 5 online payment methods 2020, United Kingdom: Top 10 Personal Care online stores, United States: Top 5 most used shipping methods 2020, Germany: Top 10 Food & Beverages online stores, United States: Top 5 Pharmacy online stores, Average CPC on search engines 2020, by country, Germany: Top 10 Personal Care online stores, United Kingdom: Top 10 Sports & Outdoor online stores, Germany: Top 10 Sports & Outdoor online stores, Traffic to health disinformation websites vs official health institutions 2019-2020, Global distribution of recovered plastic imports from the U.S. by country 2017/2018, Operating profit of Bioneer Corporation 2015-2021, Size of the global disposable tableware market 2016-2020, Forecast - global software industry revenue 2007-2011, E-Commerce net sales of nike.com from 2014 to 2022 (in million US-Dollar), Find your information in our database containing over 20,000 reports, Find a brief overview of all Outlooks here, Tools and Tutorials explained in our Media Centre, Immediate access to statistics, forecasts, reports and market outlooks, Detailed source and background information.