Last week, Nike reported on its first quarter of the 2021 fiscal year. Revenues were $10.6 billion (only down 1% vs 2019 numbers). Here are three key takeaways;
Rising digital sales. According to WARC’s Global Ad Trends report; “Brands are set to spend $59bn on e-commerce platforms this year”. Furthermore, “COVID-19 will result in an additional $183bn being spent online by consumers this year”. Nike’s earnings call was the perfect example of this shift to a digital-first economy. The apparel manufacturer reported a digital sales increase of a massive 82%. This was further re-affirmed by Nike CEO, John Donahoe, who stated, “We know that digital is the new normal. The consumer today is digitally grounded and simply will not revert back.” Female momentum. Last year, Nike partially attributed a 7% increase in quarterly revenues to its unprecedented investment in the 2019 Women’s World Cup. Nike Executive Chairman, Mark Parker, even declared 2019 to be its year for women. “We think 2019 is going to be a true tipping point for women in sport, with more participation, more coverage, and overall, more energy.” Clearly this momentum has continued. The earnings call reported digital sales of women’s apparel had spiked 200%! Workout from home. The at-home fitness sector is booming, as per last week’s newsletter. Nike has seen it’s connected fitness business increase. The Nike Training Club saw more than 50% of members starting to workout in Q1. Furthermore, The Nike Running Club has had four consecutive months of more than a 1 million downloads for its audio-guided runs.