Fabric Products,Fabric Information,Fabric Factories,Fabric Suppliers Fabric News Nike: Quarterly sales exceeded US$11 billion, an increase of approximately 80% for three consecutive quarters

Nike: Quarterly sales exceeded US$11 billion, an increase of approximately 80% for three consecutive quarters



American sports giant Nike Group announced on Friday key financial data for the second quarter of the 2020/2021 fiscal year ended November 30. The strong performance of digital channels and the Chinese market d…

American sports giant Nike Group announced on Friday key financial data for the second quarter of the 2020/2021 fiscal year ended November 30. The strong performance of digital channels and the Chinese market drove both revenue and net profit. increase.

For the second quarter of this fiscal year as of November 30, Nike’s key financial data are as follows:

Overall revenue year-on-year Increased 9% (up 7% at constant exchange rates) to US$11.2 billion

Net profit increased 12% year-on-year to US$1.3 billion, or US$0.78 per share

Gross profit increased by 7% year-on-year to US$4.84 billion

The gross profit margin was 43.1%. Promotional activities and restructuring were carried out to reduce inventory. The increase in administrative costs led to a slight decrease in gross profit margin

Benefited from the strong growth of Nike’s digital business of 84% in the quarter, it offset the decline in wholesale business and direct store sales revenue. adverse effects.

Nike Group President and CEO John Donahoe noted during a conference call with analysts on Friday that the second quarter was the third consecutive quarter in which Nike’s digital business achieved approximately 80% revenue. %growth of. On November 11, Nike became the number one sports brand on Tmall’s “Double Eleven”, attracting more than 4 million new members and generating digital business demand of US$500 million.

John Donahoe pointed out that the shift of consumers to digital channels is permanent, and now digitalization has been integrated into all efforts made by Nike.

In the second quarter, Nike temporarily closed stores in areas where the number of epidemic cases increased. As of Friday, more than 90% of Nike’s stores were still open, and some stores had shortened their business hours. Affected by the new crown epidemic and related safety measures, Nike’s physical store traffic in North America, Europe, the Middle East and Africa continues to decline. Fortunately, the poor performance in some regions was offset by higher conversion rates.

Nike invested approximately US$135 million in digital and restructuring in the second quarter, and operating expenses increased by 4% to US$2.5 billion. In November this year, Nike revised its layoff plan at its global headquarters, increasing the number of layoffs to 700 from the 500 announced in July.

As of the end of the second quarter, Nike inventory levels were US$6.1 billion, down 2% from the same period last year, returning to good health levels globally. Nike currently holds $11.8 billion in cash, cash equivalents and short-term investments, an increase of $8.3 billion from the same period last year.

John Donahoe said, “Nike’s strong performance reflects the strength of our continued expansion. Driven by the introduction of compelling innovative products and global brand development momentum, we will continue to Expanding our leadership position, our growth strategy is working and the company is excited about the future.” Matt Friend, executive vice president and chief financial officer of Nike Group, said, “The brand’s inventory in all regions We are in good shape and we have returned to growth, which is a testament to our digital capabilities, disciplined market and financial management capabilities. Going forward, we will focus on achieving the group’s strategic vision of “Consumer Direct Acceleration” more quickly. )” to promote sustainable long-term growth and profitability.”

In the second quarter of fiscal year 2021 ending on November 30, Nike’s specific performance is as follows:

By market

North American sales were US$4.006 billion, a year-on-year increase of 1% , an increase of 1% at constant exchange rates; of which sales of shoes increased by 4% year-on-year, sales of ready-made clothing decreased by 3% year-on-year, and sales of sports equipment decreased by 9% year-on-year;

Sales in Europe, the Middle East and Africa were US$2.958 billion, a year-on-year increase of 17%, and an increase of 12% at constant exchange rates; of which footwear sales increased by 13% year-on-year, ready-to-wear sales increased by 23% year-on-year, and sports equipment sales increased by 13% year-on-year. A year-on-year increase of 18%;

Greater China sales were US$2.298 billion, a year-on-year increase of 24%, an increase of 19% at constant exchange rates; of which footwear sales increased by 26% year-on-year %, sales of ready-made clothing increased by 21% year-on-year, and sales of sports equipment increased by 35% year-on-year;

Sales in Asia-Pacific and Latin America were US$1.471 billion, basically the same as last year. It increased by 5% on a variable exchange rate basis; among which, sales of footwear decreased by 1% year-on-year, sales of ready-made clothing increased by 5% year-on-year, and sales of sports equipment decreased by 21% year-on-year.

By brand

Nike: At constant exchange rates, revenue increased 8% year-on-year to US$10.741 billion, mainly driven by the double-digit growth of direct-operated business NikeDirect and JordanBrand Driven by brands;

Converse (Converse): Revenue fell 4% at constant exchange rates to $476 million, including double-digit growth in digital and Asian businesses The trend was offset by declining business in Europe and North America

In September this year, Nike announced key financial data for the first quarter of fiscal year 2021 as of August 31. The Nike brand last quarter Sales are mainly driven by two aspects: digital channels and company-owned retail NikeDirect. Compared with the same period last year, although sales still fell slightly, Nike returned to profitability driven by digital channels and the Chinese market.

In addition to vigorously developing online business, last month Nike launched a new retail concept store-NikeUnite, specifically to serve the local community, help people connect more closely with sports, and provide people with Provide a new sports experience and commit to success�The most valuable local sports destination.

Fitness APP Optimizes Pricing Strategy

As more and more consumers log into Nike’s fitness apps and digital stores , the user data obtained by Nike is becoming the main reference factor for brand pricing strategies.

According to data from data company SensorTower, from January to November this year, Nike’s application NikeRunClub ( NRC) has been downloaded 15.4 million times globally, a year-on-year increase of 45.3%; the downloads of Nike sneaker e-commerce platform SNKRS have increased by 59.5% compared with the same period last year.

Matt Friend said at the Morgan Stanley conference in November that Nike added approximately 55 million new users to its membership database this year.

When users register for NikeRunClub (NRC), they need to provide gender, height, weight and other information. Nike uses this information to estimate users’ needs and understand their preferences to provide more targeted products. Apple users can also choose to sync information from the Health app to closely track their health data.

Some people said that Nike has obtained information such as people’s height, weight, location and browsing habits through its application, and can use this information to create advertisements and attract customers. Nike did not respond to a request for comment on how it uses app data.

Michael Faherty, portfolio manager of Seilern Investment Management Company, said that long before the outbreak, Nike had provided free fitness in its fitness application Nike+TrainingClub, which provides multiple training courses. Course services have a precise grasp of user preferences. I think the increased visibility gives Nike greater pricing power. ”

In September this year, Reuters analyzed a variety of products including Nike Air Maxes, and the results showed that Nike’s discounts have decreased this year.

Nike has recently launched some expensive sports shoes, such as Nike AdaptBB2.0 priced at US$400 and Dior Air Jordan 1s priced at about US$2,000. Nike has also invested in technology, with a production price of about US$220. NikeAirVaporMax2020Flyknits. In addition, Nike has also raised prices on some older sports shoes, such as NikeAir Force1’07 and NikeAirVaporMaxPlus.

The director of privacy and cybersecurity at Lowenstein Sandler law firm said that Nike The data collected may be used to study whether consumers are willing to accept higher product prices.</p

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