Merrell is expanding beyond hik

2022.07.31
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Merrell is expanding beyond hik

Why Merrell is expanding beyond hiking shoes with its new trail running line, The new C-suite: Retailers like Nordstrom and CVS are personalizing their org structures to meet industry shifts, Brands and agencies are turning to Amazons ad products as other platforms flounder, The resiliency is terrific: Why water bottle sales are on fire, Ive always been obsessed with the user shopping experience: How Julie Bornstein plans to transform shopping on Pinterest, Mattel's booming IP business helped swing it to a profit, PepsiCo bets on energy drinks and low-sugar beverages as it evolves its portfolio, Bed Bath & Beyond CEO exits as sales decline 25%. Invest better with The Motley Fool. Today, were in a stronger position relative to our competition than we were prior to the pandemic, said Nike President and CEO John Donahoe. revenues fourweekmba attributable divisions facts. Nike (NKE 2.40%) had an eventful 2020 as the pandemic forced its shops and wholesale partners to close their doors. Nike [is trying] to future proof their brand.. margin Returns as of 07/30/2022. Please create an employee account to be able to mark statistics as favorites. Market-beating stocks from our award-winning analyst team. Despite these investments in digitalized supply, however, the retailer is showing the first signs of supply troubles after subsequent factory closures, first in Indonesia and now in Vietnam. Learn More. Bradley Freeman has no position in any of the stocks mentioned. nike 2003 report Nikeis proving during the pandemic that its big bets in digital are paying off, as consumers are turning to its website and app in record numbers to shop for sneakers and workout apparel., For the past few years, the company has been pulling away from department stores and other wholesale outlets, instead investing inopening its own smaller neighborhood stores, called "Nike Live," to serve as pickup hubs for online orders, alongside multilevel flagship locations dubbed "House of Innovation." Vogue Business Fashion's Global Perspective, Designer and influencer Alexa Chung to close her fashion label, Bleak outlook for luxury sector in global lockdown, Nike revenue dips 1% as sales slow in China, US, Index: Brands are better prepared for a second lockdown, Enter your email to stay updated with newsletters, event invites & promotions via email from, acquiring digital fashion marketplace RTFKT. Nike or Lululemon Athletica: Which Stock Is a Screaming Buy Right Now? Profit from the additional features of your individual account. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services. The Motley Fool has a disclosure policy. The outperformance in digital is not just welcomed from a revenue standpoint. Is It a Buy? Indeed, Nike has been investing in digital shopping long before the pandemic, often as a first-mover in new technology. "E-commerce Net Sales of Nike.Com from 2014 to 2022 (in Million Us-dollar). Now, the retailer is iterating on its digital experiences by investing in loyalty member targeting for sneaker drops and creating digitally-integrated brick-and-mortar, small-footprint stores. Show publisher information Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns. The shares climbed more than 5 per cent in after-hours trading. [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. The brand is starting to take what Donahue described as a season-less approach and avoiding heavy discount and promotionally even if the product reaches the market later than we expected.. Consumers are hungry for home-gym accessories and sweat-wicking clothing during the pandemic. 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. As soon as this statistic is updated, you will immediately be notified via e-mail. See Figure 2, below. And it did just that. From a company demand perspective, Nike CFO Matthew Friend expects the digital evolution to boost key growth drivers such as women's apparel. Because the changes happening in the market work in our favor. Comments, questions or feedback? Nike is almost a data-first company, because theyre able to provide the correct product to the right consumer at the right time, in the most convenient way [through targeting], said Jessica Ramirez, a retail analyst at investment research firm Jane Hali & Associates. The brand is banking on digital sales and pushing consumers to its app, loyalty program and buy-online-and-pick-up-in-store features. A Division of NBCUniversal. In, ecommerceDB.com. Then you can access your favorite statistics via the star in the header. 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. Discounted offers are only available to new members. Please see our privacy policy for more information. Now, the companys efforts are focused on achieving long-term growth. We want to hear from you. You need at least a Single Account to use this feature. Lululemon has said that 20% of its second-half 2021 inventory is delayed because of factory closures in Vietnam. Why? Founded in 1993 by brothers Tom and David Gardner, The Motley Fool helps millions of people attain financial freedom through our website, podcasts, books, newspaper column, radio show, and premium investing services. Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. In the fiscal 2021 third quarter, Nike did see its gross profit margin expand 130 basis points to 45.6%, and it also delivered a 14.0% net income margin versus 8.3% in the prior-year period. Walmart announced Wednesday it plans tohire 20,000 seasonal employees during the holidays to help pack and ship online purchases in its fulfillment centers. While this may not seem significant to some, when dissecting the growth, it becomes much more interesting. ecommerceDB.com. (Nike also has a wholesale operation where it sells its gear to other retailers like Footlocker ($FL), for example.). Lululemonannounced late Tuesdayit plans to resume its stock buyback program, which had previously been halted because of the pandemic. and over 1Mio. A shift from wholesale distribution to digital sales affects the company's margin profile as well. Research financial & accounting data like never before. E-Commerce net sales of nike.com from 2014 to 2022 (in million US-Dollar) [Graph]. Learn more about how Statista can support your business. 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. Nike enjoys a gross profit margin roughly 10 percentage points higher for digital sales than for wholesale. American multinational sport clothing brand Nike store seen in Hong Kong. The sportswear giant alleges streetwear resale marketplace StockX is blatantly freeriding on the back of Nikes trademarks by selling NFTs featuring digital renders of Nike goods. Nikes peers are also likely to be hurt by Vietnam factory closures as well. As management itself says, digital sales growth more than offset any physical store sales declines. The sneaker giant filed its most recent quarterly report on Jan. 5, and all the important numbers on the income statement looked good. What's the Lowest Your Social Security Increase Will Likely Be? In my view, investors can feel very comfortable buying shares of Nike stock. Demand in North America particularly online drove growth, with sales up 10 per cent, offset by a 4 per cent decline in Greater China. Deft footwork, indeed. Nike Is the Worst Performing Dow Stock in 2022. Got a confidential news tip? Use Ask Statista Research Service. September 21, 2021. 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", 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. The sportswear giant reported a faster pace of sales in its third quarter despite supply chain woes, surprising investors. Sign up for free newsletters and get more CNBC delivered to your inbox, Get this delivered to your inbox, and more info about our products and services., 2022 CNBC LLC. To use individual functions (e.g., mark statistics as favourites, set Still, Nike expects delivery delays will continue, with transit times particularly high in the key North American market. We did, however, notice this item in the narrative discussion that preceded the table disclosures: The Company's NIKE Direct operations are managed within each NIKE Brand geographic operating segment.. Moreover, Nike is attempting to digitize its supply chain, leveraging consumer data to predict future supply needs. Cumulative Growth of a $10,000 Investment in Stock Advisor. That bit about NIKE Direct sounded like a clue to us. Nike is focusing on direct-to-consumer sales, cutting wholesale accounts and investing more in its own stores, sites and apps. Each direct-to-consumer sale gives Nike greater visibility into consumer data, allowing it to control inventory more effectively. Inventories rose 15 percent due to supply chain disruptions. The company's priorities are its three pillars: sparkling water, energy and sports drinks, along with ready-to-drink coffee. They're shopping for leggings and sweatpants to lounge in and wear while working from home. Still, profit fell 4 per cent for the quarter to $1.4 billion on higher expenses and taxation. Sue Gove, an independent director on the Bed Bath & Beyonds board and chair of the board's Strategy Committee, has been appointed as the interim CEO. Businesses had to engage in some deft footwork last year to retool their operations amid the disruptions of coronavirus. In response, the Nike team is moving production away from Vietnam to Indonesia and China and leveraging airfreight when possible. Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research, Copyright, Trademark and Patent Information.

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. Just a quarter earlier, Nike reported a surprise loss of $790 million, as companies were canceling orders of its merchandise and stores in key markets including North America and China were temporarily shut., "Nike is a better, more profitable company today than it was a year ago,"Deutsche Bank analyst PaulTrussell said. 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. Chart. ", Nike, which has a market cap of $199.4 billion, has watched its shares rally more than 15% this year.. So we hopped over to the Management Discussion & Analysis section, and found considerably more detail about that part of the business. Sign up now to try the Premium Suite. Consumers shift to digital plays to Nikes advantage and our consumer-direct acceleration strategy is capitalizing on this marketplace transformation. For example, he can take his cloud computing know-how from ServiceNow, his payments expertise from PayPal, and his marketplace prowess from eBay to drive success for the sports apparel company. Market volume, market growth and all monetary figures at store level refer to the annual e-commerce net sales after the deduction of returns.For additional information and a definition of the product categories please visit our methodology page on ecommerceDB.com. Given how Nike outperformed many of its competitors during the pandemic, Donahoe seemed to handle his tumultuous first year quite well. So thats another retailer making the pivot to e-commerce. Making the world smarter, happier, and richer. Nikes strong results this quarter show that our consumer direct acceleration strategy is working, as we invest to achieve our growth opportunities, said Nike CEO John Donahoe in a statement. Get features designed for better insights. With that in mind, a lasting shift to digital business could create a permanent boost to the company's profits. As a Premium user you get access to background information and details about the release of this statistic. But it has already exceeded that. Advertising and promotions expenses spiked 20 per cent in the quarter to $854 million. Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Everything you need to know about Consumer Goods, Identify market potentials of the digital future, Insights into the world's most important technology markets, Health Market Outlook Meanwhile70% of running company On Holdings productions are in Vietnam. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Digital sales soared 59% year over year with double-digit growth in every single geography. Despite massive supply chain delays after factory closures in Indonesia and Vietnam, Nikes digital sales continue to drive overall revenue growth. All Rights Reserved.

Nike proved it wasnt immune to supply chain issues last fall, when it warned that factory closures due to Covid-19 and other delays could cause problems with deliveries. Nike said revenue accelerated in the third quarter, beating analysts expectations, led by its own retail stores and digital channels, particularly across North America. There you have it. 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.. Let's dive into the operational changes Nike made, and how they could position the company for an even stronger future. On Thursday, Nike announced 16% year-over-year growth in total revenue and 40% growth in North American digital sales. Our third quarter results demonstrate Nikes ability to navigate through volatility, while continuing to serve consumers directly and digitally, at scale, said Friend. With so much disruption to the iconic brand's business model, it had to be flexible and creative to continue delivering for shareholders in the new environment. Digital sales were $2.4 billion for the second quarter of fiscal 2021 compared to $1.3 billion for the second quarter of fiscal 2020. ", For many retailers, not just Nike, e-commerce is fueling gains, even driving hiring. (September 21, 2021). statistic alerts) please log in with your personal account. ", Nike shares were up about 9% Wednesday morning, hitting an all-time intraday high of $130.38., Before the Covid-19 crisis, Nike had set a goal of having its e-commerce sales represent 30% of total revenue by 2023. Thats informative unto itselfrevenue up in all four regionsbut it doesnt tell us anything about e-commerce versus other sales channels. 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. Get full access to all features within our Corporate Solutions. Incorporated in this definition are purchases via desktop computer (including notebooks and laptops) as well as purchases via mobile devices such as smartphones and tablets.The following are not included in the e-commerce market: marketplace platforms only, digitally distributed services (e.g. Thats brought it closer to its customers, Donahoe said. Its since closed the gap on losses in China, which fell as much as 25 per cent last year, and returned to growth in other Asia-Pacific regions and Latin America. Currently, you are using a shared account. Please do not hesitate to contact me. Even more encouraging, these numbers would have actually been better if not for global container shortages that affected inventory shipments. Email us at feedback@voguebusiness.com. "Simply put, scale matters, and Nike leads. . While Nikes in-store sales havent yet reached pre-pandemic levels, the retailers digital sales continue to grow. 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. We are focused on what we can control, while there are several new dynamics creating levels of volatility. He noted Nike stores and e-commerce operations remain paused in Russia and Ukraine as the war continues, though both account for less than 1 per cent of total sales. "And there is quite a short list of entities that have been able to achieve that.

Was that part of Nikes strategy? 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. Nike said its women's apparel sales were up almost 200% during the latest quarter., But as more sales move online and out of wholesale channels, Nike is finding a way to make those digital sales more profitable a feat that many in retail grapple with. travel tickets), online stores dedicated to digital media downloads or streams as well as online stores dedicated to B2B markets nor sales between private persons (C2C). "Digital is fueling how we create the future of retail. 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 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. The Motley Fool recommends eBay and recommends the following options: long January 2022 $75.0 calls on PayPal Holdings. On a currency-neutral basis, NIKE Direct revenues increased 30 percent, driven by digital sales growth of 80 percent, which more than offset comparable store sales declines of 4 percent primarily due to reduced physical retail traffic, in part resulting from safety-related measures in response to COVID-19. OK, but exactly what is Nike doing to get these numbers? 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. ", "Nike's digitaltransformationstrategyisnoteasilyreplicated," he added. Like Nike, Lululemon has watched its digital business explode: Its online sales soared 157% during the latest quarter., To be sure, companies that sell workout apparel like Lululemon and Nike are in many ways just finding themselves in the right spot at the right time. Sign up to our newsletter for a truly global perspective on the fashion industry. The Motley Fool owns shares of and recommends Nike, PayPal Holdings, and ServiceNow, Inc.. At its new Nike Rise concept store in Seoul, for example, the retailers is testing radio-frequency identification for in-store product comparison. Youre reading a free article with opinions that may differ from The Motley Fools Premium Investing Services. Who's Ready for a $192 Per Month Increase to Their Social Security Check? Register in seconds and access exclusive features. In other words, Nike could have sold even more merchandise if it had the inventory available to do so. 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. "E-Commerce net sales of nike.com from 2014 to 2022 (in million US-Dollar)." The e-commerce market encompasses the sale of physical goods via a digital channel to a private end user (B2C). 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. Except, the $4.31 billion in that line item still combines both e-commerce and company-owned stores. If you are an admin, please authenticate by logging in again. The margin expansion and revenue boost also allowed Nike to raise its dividend for the 19th consecutive year, despite all of the challenges the pandemic presented. First we looked at Nikes segment disclosures. Friend said annual sales will increase by mid-single digits over last year, but declined to provide further guidance, given the latest Covid lockdowns. One firm taking the right steps seems to be Nike ($NIKE). To receive the Vogue Business newsletter, sign up here. 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. 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. Still, that was an improvement on the earlier period. You can only download this statistic as a Premium user. 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.. Statista. Given this, Ramirez added that she doesnt predict long-term brand damage for Nike despite short-term revenue challenges. And Friend "continues to see the value of a more direct, digitally-enabled strategy fueling ever greater potential over the long term.". Global Business and Financial News, Stock Quotes, and Market Data and Analysis. To make the world smarter, happier, and richer. Accessed July 30, 2022. https://www.statista.com/forecasts/1218320/nike-revenue-development-ecommercedb, ecommerceDB.com. Figure 1, below, shows lots of geographic segments.