Web sales grow 65% for Nike
December 19, 2014 12:23 PM
Nike Inc. continues to set a robust pace for growth online six months into its current fiscal year.
For the second quarter of fiscal 2015 ended Nov. 30, Nike, No. 64 in the Internet Retailer 2014 Top 500 Guide reported:
- E-commerce sales increased 65.%, although Nike didn’t break out a specific figure. In the first quarter Nike reported that e-commerce accounted for about 15.% of total sales compared to 10.7% in the prior year. Using those metrics, Internet Retailer estimates that Nike’s web sales in the second quarter increased to $204.8 million from $124.2 million.
- Direct-to-consumer sales, which include e-commerce, Nike stores and related channels, increased 18.% to $1.365 billion from $1.157 billion.
- Total revenue grew 14.8% to $7.38 billion from $6.43 billion.
- Net income grew 22.7% to $655 million from $534 million.
E-commerce remains a top priority for Nike, CEO Mark Parker told Wall Street analysts on the company’s Q2 earnings call today. “E-commerce is without a doubt one of our biggest and most important growth opportunities and will be for years to come,” he said. “With opportunity for even more innovation, and expansion into new markets, this really is just the beginning of what’s possible for Nike.com.
For the first half of fiscal 2015, Nike also reported:
- Total revenue grew 14.6% to $15.36 billion from $13.40 billion
- Net income was $1.61 billion, up 22.9% from $1.31 billion.
“Going a little deeper on e-commerce, it continues to deliver with growth of 65% for the quarter,” Parker told analysts. “Our investments are paying off in this space.”
Overall Nike has ambitious plans to nearly quadruple its e-commerce sales in four fiscal years, and it’s counting on online shoppers around the world to get there. By fiscal 2017, Nike plans to post annual web sales of at least $2 billion, the company has stated at investor relations and banking conferences.