In reporting second-quarter earnings that just beat analysts’ consensus estimates, Nike reported 33 percent growth in e-commerce over the comparable period a year ago.
“And, at less than 15 percent of [direct-to-consumer] revenues today, our e-commerce business clearly has an opportunity to grow,” Mark Parker, president and chief executive officer of the Beaverton, Ore.-based sports footwear and apparel giant, told analysts on the company’s conference call late Thursday. “We also expanded our nike.com footprint in the quarter, launching sites in Japan, the world’s third largest e-commerce market, and in Brazil, further extending our commercial reach for consumers in this key growth market.”
Parker noted that Nike’s approach to digital included connections to consumers, such as those to be derived from social media and e-commerce as well as digital products, such as the Nike+ FuelBand SE, introduced in New York in October.
Trevor Edwards, president of Nike brand, noted that the brand’s 7.5 percent revenue growth in the quarter, to $6.07 billion, was highlighted by a 19 percent advance in DTC revenues, including 10 percent comparable-store growth. On a constant currency basis, revenues rose 9 percent.
Europe and the Converse brand also played big roles in the quarterly performance, as did the first signs of a resurgence in China following a long “reset” of operations and inventories in the world’s most populous nation.
Sales for the Nike brand in Western Europe rose 18.3 percent, to $1.07 billion, while those in Central and Eastern Europe were up 17.1 percent, to $295 million. Converse also turned in a double-digit growth rate, moving up 13.9 percent to $360 million in revenues.
The strong performance in Europe drew some of the attention away from a less than stellar performance in North America, where brand sales were up 9.2 percent to $2.8 billion, slightly below the growth rate of 10 percent or more expected by many analysts.
In the three months ended Nov. 30, net income rose 39.8 percent to $537 million, or 59 cents a diluted share, 1 cent better than the 58-cent consensus estimate. Year-ago profits were $384 million, or 42 cents a share. Year-ago numbers include discontinued operations.
Revenues overall grew 8 percent to $6.43 billion, slightly below the $6.44 billion expected by Wall Street, from $5.96 billion a year ago. Excluding the effects of currency fluctuation, revenues rose 9 percent. Gross margin rose 140 basis points to 43.9 percent of sales.
The closely watched tabulation of futures orders — those scheduled for delivery through April 2014 — was up 12 percent to $10.4 billion and ahead 13 percent on a currency neutral basis.
Included in that tabulation were not only increases of 26 and 13 percent, respectively, for Western Europe and Central/Eastern Europe, but also a 4 percent increase for China, or 1 percent excluding expected currency impact. That followed an 8.1 percent increase in revenues in Greater China for the second quarter, to $629 million.
Edwards reiterated that the path to sustained, profitable growth in China won’t be “linear” but added that the company is seeing the first signs of success as it differentiates its product offering along sports classifications.
In yet another fashion show shuffle, @elleryland is moving its show in sync with the Paris couture calendar — though the brand is still keeping one foot on the city’s ready-to-wear schedule. Their runway show in January will coincide with the launch of a new strategy: designing two main collections each year instead of four, which will then be released in four drops. “As we all know, the system needs to change. We need to show sooner to give time back to artisans and designers to do what they do best — create,” said founder Kym Ellery. #wwdnews #wwdfashion (📷: @kukukuba)
@maxmara’s classic 101801 coat was the cornerstone of its pre-fall 2018 collection. The design team expanded the traditional double-breasted, kimono-sleeved style into a trapeze coat, lean belted styles and a peacoat and presented them in monochromatic looks – like the camel one pictured here. #wwdfashion #prefall18 (📷: George Chinsee)
The @cfda has shifted the dates of #NYFW, with Men’s showing on February 5 through February 7, and Women’s will directly follow, running from February 8 through 14. The preliminary schedule will be released on the CFDA’s web site in the next few days, but Mark Beckham, VP of marketing for the CFDA, revealed that @rafsimons will be back to close the men’s-specific part of the week with a show on February 7 #wwdfashion (📷: Kelly Taub)
@ferragamo is introducing a new space dedicated to the development of women’s and men’s leather good samples. The laboratory, which is created eco-friendly materials and designed to reduce the environmental impact of the manufacturing processes, will allow the company to expand its accessories offering through traditional artisanal approaches. #wwdfashion (📷: @aitorrosasphoto)
How does a “regular, degular, schmegular” girl from the Bronx, N.Y., become a Grammy-nominated artist with a certified platinum record in less than a year? Call it the @iamcardib come up. The 25-year-old has become a musical sensation, and the fashion world is taking note. “If I could describe her style I would say drama. She’s really into the dramatics,” says Cardi B’s stylist @kollincarter. See how Carter styles her bold and out there looks with the link in bio. #wwdfashion
“There is no formula. There is no guideline. I can watch Ted Talks all day, but there is no one who can advise me on exactly what it is I should be doing,” said @ronniefieg, CEO of @kith, in an interview with WWD’s @ariahughes at the brand’s new SoHo office in Manhattan. Head to WWD.com to see how Fieg went from hanging out in shoe stockrooms at 13 to building his own business. #wwdfashion (📷: @weston.wells)
@fearofgod and @maxfieldla have teamed up on a pop-up installation. The store, located in the gallery space across from Maxfield’s Melrose Ave location, is the site of the brand’s House of God pop-up in which Fear of God founder @jerrylorenzo has created a church-inspired installation. A dozen vintage church pews sit in front of an LED screen playing 90s gospel singers in an effort to re-create an environment akin to a Southern Baptist Church, Lorenzo explained. Read more about the pop-up on WWD.com #wwdfashion (📷: Jennifer Johnson)
Known for his sleek, sophisticated American glamour, Norman Norell is the subject of an upcoming exhibition at @fitnyc. “Norell: Dean of American Fashion,” which runs from February 9 through April 14, will feature approximately 100 ensembles and accessories. His best work is exemplified by the designer’s glittering “mermaid” gowns frosted with thousands of hand-sewn sequins – like the one pictured. (📷: William Helburn) #wwdfashion
For pre-fall 2018, @balmain didn’t let go of the glitz. A crystal embroidered baseball jacket priced at around $40,000 hangs in the “couture” section of the brand’s first men’s pre-collection. Sporting the words “Balmain Army” across the back, the item took around two months to make. “When it was completed, it was like Christmas, it was like, ‘It’s done, it’s exactly what I wanted,’” said Balmain’s creative director @olivier_rousteing during a tour of the collection in a Paris showroom on Monday. #wwdfashion