Nike Is Stepping Up Digital Investments After Monster Quarter for Online Sales
Store closures took a heavy toll on Nike's (NYSE: NKE) business last quarter, with sales dropping 38% year over year. But Nike was well prepared for the current environment, as digital sales surged 75%. Nike has spent the last few years shifting its business strategy from its dependence on physical-store sales to an enhanced online shopping experience, including its roster of activity and commerce apps.
During the call, CEO John Donahoe said, "We are seeing a true step-function change in our digital transformation." Workouts on the Nike Training Club app more than tripled, and revenue through the SNKRS app exceeded $1 billion globally for the first time in fiscal 2020. That increased mobile engagement is fueling Nike's digital business.
Nike's digital business comprised 30% of total revenue in the last quarter, reaching $5.5 billion for fiscal 2020. Digital growth accelerated each month during the quarter, and the trend has continued into June even as stores began to reopen.
Source Fool.com
