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.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)