Nike's online sales surge 82 percent, posts rise in profit

For its first quarter, Nike, Inc. reported revenues of 10.6 billion dollars, down 1 percent on a reported basis and flat to prior year on a currency-neutral basis. The company said in a statement that Nike Direct sales were 3.7 billion dollars, up 12 percent on a reported basis, and up 13 percent on a currency-neutral basis, with growth across all geographies, while Nike brand digital sales increased 82 percent, or 83 percent on a currency-neutral basis, with double-digit increases across North America, Greater China, and APLA and triple-digit growth in EMEA. Diluted earnings per share were 95 cents, up 10 percent. “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, Inc. Review of Nike’s first quarter results The company added that the first quarter revenue performance was impacted by strong Nike brand digital growth, offset by lower revenue in wholesale business and Nike-owned stores. Despite a majority of stores open in the quarter, Nike continued 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. EMEA returned to growth of 5 percent on a reported basis, led by triple-digit growth in digital, while Greater China revenue increased by 6 percent on a reported basis and 8 percent on a currency-neutral basis, led by digital and Nike Factory Stores. Revenues for the Nike brand were 10 billion dollars, 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 the wholesale business. Revenues for Converse were 563 million dollars, up 2 percent on a currency-neutral basis, driven by strong demand in Europe and in digital, globally. Gross margin for the quarter decreased 90 basis points to 44.8 percent, while net income was 1.5 billion dollars, up 11 percent and diluted earnings per share were 95 cents, increasing 10 percent. Picture:Nike media resources
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