Nike annual web sales top $1 billion for the first time
June 26, 2015 03:19 PM
There are no summer doldrums for Nike when it comes to e-commerce.
In fact, Nike Inc., No. 61 in the Internet Retailer 2015 Top 500 Guide achieved an e-commerce milestone: $1 billion in annual web sales.
For the 2015 fiscal year ended May 21 Nike reported:
- Web sales increased 55.1% to $1.19 billion from an Internet Retailer estimated $767.0 million in fiscal 2014.
- Total revenue increased 10.1% to $30.60 billion from $27.79 billion.
- Direct-to-consumer sales, which include the web and stores, increased 25.1% to $6.63 billion from $5.30 billion.
- The web accounted for 3.9% of sales compared with 2.8% in the prior year.
- Net income was up 21.6% to $3.27 billion compared with $2.69 billion in fiscal 2014.
“Our e-commerce business surpassed $1 billion in revenue this past year, a fantastic achievement from all of our teams,” CEO Mark Parker told Wall Street analysts Thursday on Nike’s year-end earnings call, according to a transcript from SeekingAlpha.com. “But really we’re just scratching the surface of our potential in this area. Global consumer spending through e-commerce exceeds $1 trillion, a significant portion of which is done on mobile devices— tremendous opportunity ahead for us in e-commerce.”
For the fiscal fourth quarter Nike reported:
- A year-over-year growth in e-commerce sales of 51%, but it didn’t release specific metrics.
- Total revenue increased 4.7% to $7.77 billion from $7.42 billion.
- Net income increased 23.9% to $865.0 million compared with $698.0 million in fiscal 2014.
“We delivered 51% revenue growth in Q4 with 55% growth for the full year, and we saw increases in both traffic and conversion, fueled by our investments in critical infrastructure to improve the consumer experience on both desktop and mobile,” Parker told analysts. “And as I mentioned last quarter, our traffic on mobile has exceeded traffic on desktop, making it a very sharp point for consumer engagement going forward.”