• Loading stock data...
Monday, November 25, 2024

Nike’s Transformative Digital Shift Underway

  • Nike is turning toward digital, both in its sales and media.
  • The company has made recent investments in the metaverse.
Nike-Roblox-Nikeland
Nike/Design: Alex Brooks

Nike is going digital in more ways than one, and market analysts are taking notice.

Robert Drbul of Guggenheim Partners called Nike his “best idea” for 2022 in a Dec. 31 note, saying the shoe and apparel maker “is rapidly embarking on the next era of its company history.” 

The Swoosh has reshaped itself around a trend that has grown quickly in recent years, direct-to-consumer sales, and one that has just begun capturing the public’s imagination, the metaverse.

  • Nike has cut off relationships with numerous retailers while amplifying its own DTC sales, which grew 12% year-over-year in the company’s fiscal second quarter of 2022. 
  • Last month, Nike acquired RTFKT, which produces NFTs, sometimes paired with a physical collectible such as sneakers. It also established virtual real estate within Roblox with Nikeland, an environment in which users can play games and browse products.
  • The company is evaluating $1 billion in media spending in a review expected to last into the spring. 

Strong Fundamentals

“The brand commands dominant market share, which we expect will grow materially from here as digital scales further, new product innovation remains robust, and heavy investment behind key growth drivers continues,” Drbul wrote.

Nike banked $11.4 billion in fiscal Q2 revenue, with the flagship brand accounting for 94.7% of that sum.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

Vanderbilt Commodores quarterback Diego Pavia (2) throws the ball as Auburn Tigers take on Vanderbilt Commodores at Jordan-Hare Stadium in Auburn, Ala., on Saturday, Nov. 2, 2024. Vanderbilt Commodores defeated Auburn Tigers 17-7.

Vandy QB Pavia Sues NCAA for 2 More Years of Eligibility

Diego Pavia beat Alabama. Can he beat the NCAA’s eligibility rules?
April 13, 2019; Oakland, CA, USA; Detail view of Anta shoes worn by Golden State Warriors guard Klay Thompson (11) during the second quarter in game one of the first round of the 2019 NBA Playoffs against the LA Clippers at Oracle Arena.

Nike and Adidas Are Losing Sportswear Share in China

Chinese brands like Anta and Li-Ning are taking Nike’s share of the market.
Brooks Running posted positive numbers in Q1 of 2023.

Brooks Running Is Having Its Best Year Ever

Brooks opened its first store in Shanghai as it pushes into China.

Lululemon-Fanatics Collab With NHL Sees ‘Explosive’ First-Day Sales

The premium collection made up 80% of all NHL merch sales.
podcast thumbnail mobile
Front Office Sports Today

How Non-Football Programs Are Surviving the NIL Era

0:00

Featured Today

Can an Elite Women’s Soccer School Survive the New College Sports Moneyball?

Santa Clara faces an uphill battle in the new college sports landscape.
Nov 16, 2024; Washington, District of Columbia, USA; Washington Spirit forward Trinity Rodman (2) celebrates after defeating NJ/NY Gotham FC in a 2024 NWSL Playoffs semifinal match at Audi Field. Mandatory Credit:
November 22, 2024

The Washington Spirit’s Business Makeover Carried Them to the Finals

The team’s return to the NWSL championship looks a lot different from 2021.
Nov 18, 2023; Las Vegas, Nevada, USA; Williams Racing driver Logan Sargeant of the United States (2) during the Las Vegas Grand Prix at Las Vegas Strip Circuit.
November 21, 2024

F1 Grand Prix Upended Vegas Last Year. Stakes Are High for Its..

Stakes are high as F1 gears up for a successful second act.
Classic Football Shirts New York Pop-Up
November 18, 2024

Vintage Soccer Jerseys Have Found a Sweet Spot in the Lucrative U.S...

The money-making shirts are at the prime intersection of memorabilia and fashion.

UFC’s Vegas Sphere Fight Should Set Records

The MMA fight has big aspirations and a budget to match.
August 13, 2024

Duael’s One-On-One Racing Brackets Are Yet Another Stab at Saving Track

Duael will debut in March 2025 with the inaugural Duael 100.
September 8, 2024

Guardian Caps Make NFL Debut

Multiple NFL players wore Guardian Caps over their helmets Sunday.
Sponsored

How UBS Crafts Impactful Partnerships Across Sports, Arts, and Culture

As UBS continues to expand its impressive array of sports and entertainment partnerships, the company solidifies its position as a leader in wealth management.
August 11, 2024

Guardian Caps Have Arrived in the NFL—Ahead of Schedule

Colts star Jonathan Taylor strapped one on for Sunday’s preseason game.
August 5, 2024

How Omega Timing Determined Noah Lyles Won Olympic Gold

Omega touches every corner of the Olympics.
The Adidas ball has changed over the years.
July 25, 2023

The Most Advanced Tech at the Women’s World Cup Might Surprise You

This year’s OCEAUNZ introduces connected ball technology to the women’s game.
Sponsored

Rewriting the Sports Media Playbook

WSC’s highlight automation improved Clemson’s content strategy and overall growth.