Nike’s Digital Sales Surge 80 Pct, While D2C Sales Rise 32 Pct
Nike reported on Friday (Dec. 18) as part of its Q2 fiscal 2021 financial results that its flagship Nike brand’s digital sales surged 80 percent on a currency-neutral basis during the three-month period. The shoe giant said that included triple-digit percentage growth in North America and double-digit percentage increases in other regions.
The sportswear company also reported that sales at Nike Direct, its direct-to-consumer (D2C) business, jumped 32 percent on a currency-neutral basis to $4.3 billion, with “double-digit growth across all geographies.”
“Nike’s strong results during a dynamic environment show the power of staying on the offense,” President and CEO John Donahoe said in announcing the results. “Fueled by compelling innovative product and global brand momentum, we continue to extend our leadership. Our strategy is working, and we are excited for what’s ahead.”
All told, Nike reported $10.7 billion in Nike brand revenues, marking a rise of 8 percent from the past year on a currency-neutral basis. The company attributed the gains to formidable expansion in its Nike Direct, sportswear and Michael Jordan-related businesses. However, mid-single-digit decreases in the company’s wholesale business partly offset that strength.
Nike also reported that revenues fell 4 percent on a currency-neutral basis to $476 million at its Converse brand, where double-digit growth in digital and Asia sales failed to offset decreased European and North American revenues.
Overall, Nike reported 78 cents in diluted earnings per share (EPS) on revenues of $11.2 billion. That exceeded analyst expectations of 62 cents per share on $10.56 billion of revenues.
“With healthy inventory positions across all geographies, our return to growth is a testament to our digital strength as well as our disciplined marketplace and financial management,” said Executive Vice President and Chief Financial Officer Matt Friend. “As we look ahead, we are focused on moving even faster against our strategic vision of consumer direct acceleration and fueling sustainable, long-term growth and profitability.”