The pivot to e-commerce by Nike Inc. has helped the sneaker giant power through the pandemic of the coronavirus.
On Friday, the company mentioned the digital sales of its flagship model increased 84 percent in the quarter ended Nov. 30, which included Black Friday. Together with strong demand in China, the strong gross sales from Nike’s websites and cell apps helped the corporate record general gross sales beneficial assets and better revenue than the year-ago interval.
Nike is among a number of retailers that have benefited from earlier attempts to collect gross online revenue. Earlier than the pandemic struck, through its personal website and shops, the big sportswear had strengthened its direct-to-consumer business. It paved the selection of wholesale stores that could promote its products and parted methods with Amazon.com Inc. again.
It has also invested in shopping applications, selling shoes and guided workouts.
Nike closed stores and continued to pay its staff in the early months of the pandemic, but doubled digital revenue when customers were confined to their homes. On Friday, the company said more than 90 percent of its owned stores were open during the period, but due to the pandemic and safety-related initiatives, they continued to experience traffic declines.
According to Jay Sole, an analyst at UBS, the Covid-19 pandemic has changed the U.S. retail landscape by accelerating e-commerce adoption among shoppers, particularly older individuals. He wrote in a research note on Friday that the bank is predicting further shop closures and the online share to hit 31% of U.S. retail sales by 2024, up from 14% in 2019.
Mr. Donahoe, a former eBay CEO who took over Nike’s top job at the beginning of the year, said the company had approximately 80 percent digital growth in three consecutive years, which he said helped the brand seize market share from rivals. “The shift to digital for consumers is permanent,” he said.
Thousands of closures have been announced this year by bricks-and-mortar outlets, and several debt-loaded retailers have applied for bankruptcy protection. In November, restaurants, department stores and car dealerships all recorded sharp declines in sales, with purchases of clothing and furniture dropping.
