Nike’s online sales up 82% in first quarter

Worldwide
Published:  28 September, 2020

Reported revenues for the global sportswear manufacturer totalled US$10.6 billion for the its first quarter ended August 31, 2020, down 1% on a reported basis and flat to the prior year on a currency-neutral basis.

Nike direct sales amounted to US$3.7 billion for the Group’s first fiscal quarter, up 12% on a reported basis, and up 13% on a currency-neutral basis, with growth across all geographies. Nike brand digital sales increased 82%, with double-digit increases across North America, Greater China, and APLA and triple-digit growth in EMEA. Diluted earnings per share for the quarter was US$0.95, up 10%. Gross margin decreased 90 basis points to 44.8%, primarily attributed to the impacts from Covid-19, including higher promotions to reduce excess inventory across the marketplace and higher supply chain costs. Net income was US$1.5 billion, up 11%.

“Our results this quarter continue to demonstrate Nike’s full competitive advantage, as we strengthen our position in the midst of disruption,” said John Donahoe, President and CEO, Nike. “In this dynamic environment, no one can match our pace of launching innovative product and our Brand’s deep connection to consumers. These strengths, coupled with our digital acceleration, are unlocking Nike’s long-term market potential”, he added.

The Group said that, despite a majority of stores open in the quarter, it continues to experience year-over-year declines in physical retail traffic across the marketplace due to Covid-19 impacts and safety related measures, offset partially by higher conversion rates. Revenues for the Nike brand in the quarter totalled US$10 billion, flat to prior year on a currency-neutral basis driven by double-digit growth in Nike Direct, as well as growth in Sportswear and the Jordan Brand, offset by declines in its wholesale business. Revenues for Converse were US$563 million, up 2% on a currency-neutral basis, mainly driven by strong demand in Europe and in digital, globally.