Nike Continues Digital Push, Growth in China

Nike made a digital push to sustain the sportswear giant through the pandemic.

The company’s digital sales increased 84% in the second quarter of its 2021 fiscal year, marking the third-straight quarter they have increased more than 80% year-over-year. In North America, digital sales had triple-digit growth.

“Digital is the new normal in consumer behavior and we believe the trends we’re seeing are here to stay,” company CEO John Donahoe said on a conference call.

Nike’s Q2 Overview:

• Revenue up 9% to $11.2 billion
• Net income up 12% to $1.3 billion
• North American revenues up 1% to $4.0 billion

Foot traffic remains well below what it was last year at Nike-owned stores despite 90% of them being opened during the quarter.

The company has looked to increase its foothold in China, where it is seeing the most growth globally. Revenue in the region was up 24% to $2.3 billion.

On Singles Day, the annual shopping holiday in China that falls on Nov. 11, the company gained 4 million new shoppers and totaled more than $500 million in digital sales.

Nike’s shares are up 34.3% overall in 2020.