Companies around the globe are working hard to adapt to the everchanging environment and Nike is not an exception. Interestingly, the company reported an 82% increase in online sales.
It is worth mentioning that, Nike used the coronavirus pandemic as an opportunity to accelerate its digital business and its women’s apparel division grew nearly 200%.
This is not the end of the story, as the company also offered a fresh outlook for fiscal 2021. People should take into account that, Nike expects sales to be up high single digits to low double digits from a year earlier.
Nike and formidable results
Let’s have a look at the results. It is worth noting that, for the first quarter net income rose to $1.52 billion or 95 cents per share, from $1.37 billion or 86 cents per share, a year earlier. As a reminder, the first quarter ended on August 31.
Nevertheless, the company’s revenue fell 0.6% to $10.59 billion from $10.66 billion a year earlier. However, even this result surpassed expectations.
Notably, sales in China rose 6% but Sales in Nike’s largest market which is North America fell 2%.
Moreover, its latest results represent a strong reversal for Nike after it experienced a bigger slump last quarter. The company reported an unexpected loss as its revenue dropped 38% year over year.
Hopefully, in the first quarter, the company reopened the majority of its stores. Nevertheless, like many other retailers, the company is still limiting the number of people who can come into its stores at the same time. It makes sense as the company wants to contain the spread of the virus.
Last but not least, the pandemic is accelerating Nike’s digital potential. Nike continues to spend money on its website, mobile apps, as well as owned stores. It is not surprising as online shopping is here to stay and the company is willing to boost its online sales. Other companies should pay more attention to their websites.