Nike’s shares rose Wednesday morning after the sportswear company’s latest quarterly results made one thing clear: Its rise in e-commerce could have been helped by the COVID-19 outbreak, but it will be long-lasting.
Aug. 31, was largely unchanged despite many stores closing early in the period, reaching the $ 10.6 billion. That was $ 1.5 billion more than investors expected, sending Nike shares soaring 10% on Wednesday.
That means e-commerce now accounts for 30% of Nike’s sales, a brand that it previously hoped to reach only in 2023.
To be sure, the COVID-19 outbreak greatly aided Nike’s digital surge, which has fueled a large amount of online shopping amid large-scale store closures. athletic build. . your own stores as you move away from wholesalers like department stores. .
Nike also launched a line of maternity clothing for runners, something Donahoe says is part of the company’s job to continue to take market share from its rivals in women’s sportswear. And in a shot through the arc of Lululemon Athletica, Nike launched a new line of yoga clothing.
While most brands have simply created shopping tools for their e-commerce sites and apps, Nike has long understood that digital tools should do more than just support sales and should be insinuated into women’s lifestyles. people. clients to really pay off. Otherwise, the growth of e-commerce often just means that businesses are going from avenue to avenue, rather than increasing the overall pie.
A few years ago, the shoemaker launched his NikePlus online program, a membership program with tens of millions of members that has helped the company better understand the interests and buying patterns of each customer and ultimately sell to them. . More Products.
Nike is also benefiting greatly from tools like the Nike Training Club app and a running app that offers self-guided runs. Donahoe said that more than half of the gym app members had exercised using the app in the past quarter. That fosters customer loyalty and keeps Nike in the lead, as well as filtering users to its commerce site.
The astonishing quarterly results also validated Nike’s long-term strategy to reduce its dependence on wholesale customers such as Macy’s and Kohl’s, and strengthen its own e-commerce and retail business. That has meant equipping many stores to help fill orders online, something it had before the pandemic: About 20% of revenue at such stores in the first quarter came from filling ecommerce orders, helping the company to speed up delivery times and mitigate inventory build-up. -up.
And lest anyone think that Nike is pulling out of physical retail even as its digital business explodes, the company said it is in full swing with new stores already planning to open.
Nike has grappled with many of the trends that have rocked retail and consumer brands by anticipating where shoppers were headed – a trend it hopes to continue.
