With pandemic restrictions roiling in-person shopping, Nike is hitting big on it’s digital business gamble. While office attire-focused apparel companies like J.Crew and Brooks Brothers face bankruptcy, sporting and workout apparel companies are weathering the pandemic storm. And Nike appears to be winning the race.
According to a quarterly sales and earnings report released on Friday, the sneaker giant experienced an 84% increase in online sales in the latest period. The e-commerce boost contributed to year over year revenue growth of 9%, increasing to $11.24 billion from $10.33 billion a year ago.
The announcement exceeded analyst expectations and sparked a 5% jump in the company’s shares, hitting an all-time intra-day high of $147.95.
Hear that? That’s the sound of Nike’s logo.
Playing An Away Game
Another key piece of the quarterly report saw big numbers coming out of China. The shoe and apparel company is making inroads into the emerging market, with China’s demand for footwear and athletic gear increasing dramatically in recent years.
- Nike saw a 24% revenue growth in China in 2020, a massive increase compared to 1% growth in the US.
- On Singles Day— the Chinese Cyber Monday of sorts— over 4 million new customers purchased Nike products.
- The shopping event spurred over $500 million in Nike sales.
The Singles Day boom mirrors the retailer’s undisclosed “record” online US sales during the week of Black Friday.
The Takeaway: As e-commerce continues to eat into the traditional brick-and-mortar business, Nike is positioning itself to further transition into the digital world.