The famous manufacturer of sports goods reported the successful completion of the next quarter and made plans for the near future.
Nike has published a report on the results from the last fiscal quarter. It reported $11.2 billion in revenue, which is 9% more than during the same period the previous year. Net income rose 12% to $1.3 billion. We also managed to normalize the situation with excessive stocks; excellent results, considering all today's economic difficulties.
At the same time, growth in the digital segment was 84%. It is the third consecutive quarter in which the company's online sales are up about 80%. According to CEO John Donahue, who said during a conference call with analysts, Nike Digital now accounts for 25% of Nike's business in North America. The number of users of Nike's mobile app grew 200% during the quarter.
The company's management also talked about its plans for the near future, according to the report. Despite the growth of online sales, Nike will not abandon the offline segment and plans to open 30 branded stores. The company will continue to focus on direct channels, paying less and less attention to the wholesale partners. Sales of Nike Direct, a direct-to-consumer business unit, rose 32% to $4.3 billion in the past quarter, primarily driven by the digital segment.
Wholesale sales for Nike are slowly receding into the background. Over the past three years, the company has cut the number of retail partners in North America by 30%. And it has even led to the reduction of the number of head office employees responsible for interaction with wholesalers.
The main areas for development are women's goods, clothing, digital, and the Jordan brand. Over the past quarter, the retailer expanded its children's product line and will continue to develop this sector actively.
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