"This is how we stay ahead of the pack and expand the lead.," the U.S. brand said in a report.
According to Nike's fourth-quarter financial report and its entire fiscal year ending May 31, 2021, the company fully recovered from the turmoil caused by the coronavirus pandemic and achieved another outstanding performance. Annual earnings growth was 196%, up from 2020 and 42%, up from 2019. Meanwhile, net revenue for the full fiscal year was up 19%, while Q4 revenue was up 96%.
Such remarkable results allowed Nike CEO John Donahue to declare that the past fiscal year was a turning point in the company's history. He said it was primarily made possible due to implementing the Consumer Direct Acceleration strategy in the whole market. Now, Nike plans "to continue to actively invest in innovation and digital technology," further strengthening its leadership and laying the foundation for long-term growth.
Nike's direct sales, including digital, from its stores, have grown by 32%, reaching more than $16 billion, which is 37% of total revenue. Digital sales growth reached $9 billion and accounted for more than 20% of total revenue. Donahue said the company plans to grow digital sales to 50% of total sales.
The company's strategy of increasingly targeting women has also contributed to the increase in sales. Women's business has grown by 22%, making Nike the world's largest women's sports brand, with more than $ 8.5 billion in the capital. The Jordan brand has also seen an increase in popularity, up 31%.
In Q3, the company was hit hard by supply chain disruptions caused by labor shortages, container shortages, and logistical difficulties. As a result, the brand's sales fell 4% in Europe, the Middle East, and Africa during this period, while North America fell as much as 10%. However, things recovered quickly in Q4, and Nike was able to make up for it easily. The company's sales growth in Q4 was also helped by a recovery in the U.S. economy, which supported retail sales growth in the region.
Such good results allowed Nike to make a bragging note at the end of the report that says, "This is how we stay ahead of the pack and expand the lead."