Invest better with The Motley Fool. 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. Nike chief financial officer Matt Friend said during a call with investors on Monday that nearly all of its suppliers are now operating without restrictions, although it is closely watching the most recent Covid variant. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. Register in seconds and access exclusive features. But it has already exceeded that. Nike does disclose revenue from NIKE Direct in the MD&A, and that line of business was up in the last quarter, too. Sign up now to try the Premium Suite. Try our enhanced Excel Add-in. Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information. To receive the Vogue Business newsletter, sign up here. While Nikes in-store sales havent yet reached pre-pandemic levels, the retailers digital sales continue to grow. 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. In the company's most recent quarter (ended Feb. 28), total sales rose 3% year over year. And Friend "continues to see the value of a more direct, digitally-enabled strategy fueling ever greater potential over the long term.". The company's growth has largely been driven by its back-to-back IP deals, maximizing the strength of its franchises for movie deals and licensing opportunities. Overall, Nike's ability to successfully transform its business model amid the COVID-19 pandemic is admirable. On Thursday, Nike announced 16% year-over-year growth in total revenue and 40% growth in North American digital sales. Enter your email to stay updated with newsletters, event invites & promotions via email from Vogue Business. You can unsubscribe at any time. That Big Goodwill Impairment You May Have Missed, Digging Into Deltas Revenues, Efficiency, filed its most recent quarterly report on Jan. 5, retailers making a pivot into e-commerce sales. Cumulative Growth of a $10,000 Investment in Stock Advisor. The company's priorities are its three pillars: sparkling water, energy and sports drinks, along with ready-to-drink coffee. 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. Got a confidential news tip? Nike is focusing on direct-to-consumer sales, cutting wholesale accounts and investing more in its own stores, sites and apps. Nike or Lululemon Athletica: Which Stock Is a Screaming Buy Right Now? Making the world smarter, happier, and richer. Figure 1, below, shows lots of geographic segments. and over 1Mio. The sneaker giant filed its most recent quarterly report on Jan. 5, and all the important numbers on the income statement looked good. Please do not hesitate to contact me. Given this, Ramirez added that she doesnt predict long-term brand damage for Nike despite short-term revenue challenges. Walmart announced Wednesday it plans tohire 20,000 seasonal employees during the holidays to help pack and ship online purchases in its fulfillment centers. 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. Lululemon has said that 20% of its second-half 2021 inventory is delayed because of factory closures in Vietnam. In response, the Nike team is moving production away from Vietnam to Indonesia and China and leveraging airfreight when possible. Indeed, Nike has been investing in digital shopping long before the pandemic, often as a first-mover in new technology. Still, that was an improvement on the earlier period. statistic alerts) please log in with your personal account. 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. Use Ask Statista Research Service. 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 Still, Nike expects delivery delays will continue, with transit times particularly high in the key North American market. Get features designed for better insights. Who's Ready for a $192 Per Month Increase to Their Social Security Check? We want to hear from you. Advertising and promotions expenses spiked 20 per cent in the quarter to $854 million. The brand is banking on digital sales and pushing consumers to its app, loyalty program and buy-online-and-pick-up-in-store features. Third-quarter sales hit $10.9 billion, with direct retail (including Nike stores and its e-commerce site) up 15 per cent to $4.6 billion and digital sales up 19 per cent. Email us at feedback@voguebusiness.com. As a Premium user you get access to background information and details about the release of this statistic. This is undeniably positive, and there is likely a runway for further expansion as management expects digital to make up 30% of the business by fiscal 2023. As one might guess from the name, NIKE Direct is the firms business that sells directly to consumers, both through e-commerce sales and company-owned stores. Digital sales soared 59% year over year with double-digit growth in every single geography. Facebook: number of monthly active users worldwide 2008-2022, Smartphone market share worldwide by vendor 2009-2022, Number of apps available in leading app stores Q1 2022, Profit from additional features with an Employee Account. They're shopping for leggings and sweatpants to lounge in and wear while working from home. Nike enjoys a gross profit margin roughly 10 percentage points higher for digital sales than for wholesale. As a Premium user you get access to the detailed source references and background information about this statistic. Join us at the Modern Retail DTC Summit, where well dive deep into what it means to be a DTC brand, speaking with leaders in the space about how their business models have shifted and what theyre focusing on now. American multinational sport clothing brand Nike store seen in Hong Kong. And it did just that. One firm taking the right steps seems to be Nike ($NIKE). Are you interested in testing our corporate solutions? . Inventories rose 15 percent due to supply chain disruptions. Should Growth Investors "Just Do It" and Buy Nike Stock? 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. That bit about NIKE Direct sounded like a clue to us. Market-beating stocks from our award-winning analyst team. facts. Nike said revenue accelerated in the third quarter, beating analysts expectations, led by its own retail stores and digital channels, particularly across North America. 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. Chart. 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. Loyalty membership is also hitting its stride: while the retailer focused on acquisition in quarters past, this quarter Nike reported 70% growth in repeat buying members. Matthew Friend, Nikes evp and CFO, said the retailer has already lost ten weeks of production in Vietnam since July and factory reopenings wont even begin until October, with a ramp to full production over several months [after that]., These delays have caused Nike to re-evaluate its total revenue growth predictions from low double-digit growth to mid-single digits. Moreover, Friend predicted short-term inventory shortages in the marketplace for the next few quarters across all geographies.. Each direct-to-consumer sale gives Nike greater visibility into consumer data, allowing it to control inventory more effectively. 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. Get full access to all features within our Corporate Solutions. Learn more about how Statista can support your business. Then you can access your favorite statistics via the star in the header. OK, but exactly what is Nike doing to get these numbers? The sportswear giant reported a faster pace of sales in its third quarter despite supply chain woes, surprising investors. Even more encouraging, these numbers would have actually been better if not for global container shortages that affected inventory shipments. Cost basis and return based on previous market day close. 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. Data is a real-time snapshot *Data is delayed at least 15 minutes. *Average returns of all recommendations since inception. Thats informative unto itselfrevenue up in all four regionsbut it doesnt tell us anything about e-commerce versus other sales channels. E-Commerce net sales of nike.com from 2014 to 2022 (in million US-Dollar) [Graph]. Comments, questions or feedback? Today, were in a stronger position relative to our competition than we were prior to the pandemic, said Nike President and CEO John Donahoe. The e-commerce market encompasses the sale of physical goods via a digital channel to a private end user (B2C). To use individual functions (e.g., mark statistics as favourites, set John Donahoe took over the chief executive role at Nike in Jan. 2020. In other words, Nike could have sold even more merchandise if it had the inventory available to do so. See Figure 2, below. 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. Bradley Freeman has no position in any of the stocks mentioned. 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. Calculated by Time-Weighted Return since 2002. 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. ecommerceDB.com. Learn More. 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.. The Motley Fool owns shares of and recommends Nike, PayPal Holdings, and ServiceNow, Inc.. ", 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.