Nike (NYSE:NKE) reported an increase of 70 percent in e-commerce sales for the first quarter.
Though Nike CEO and President Mark Parker did not report the online sales in dollars on the company's earnings call this week, Internet Retailer estimates that sales rose from $139.7 million to $237 million.
"We're employing new ways to engage consumers online as we create communities, services and e-commerce experiences that fuel our growth strategies around the world," Parker told analysts, reported Seeking Alpha. "These strategies are strengthening our relationships with consumers and driving our business, as e-commerce revenues were up over 70 percent in the first quarter."
Overall revenue for the quarter grew 15 percent to about $8 billion. The brand's direct-to-consumer revenue increased 30 percent, driven by comp store growth of 15 percent. Parker said a large part of that growth can be attributed to the company's innovation in the digital realm. He added that the brand would continue to invest in innovation as it "fuels top and bottom line expansion and drives value for our shareholders."
Net income in total increased 23.5 percent to $962 million, with 3 percent of total sales coming from the Web.
And although direct-to-consumer and e-commerce experienced a big jump, Nike is not worried about cannibalizing its retail partners. The brand will continue to serve and thrive in an integrated marketplace by serving unique segments.
Some of Nike's recent success can be attributed to its brand popularity among millennials. It continually ranks No. 1 among consumers ages 18 to 34.
The brand has also seen a big jump in revenues based on the success of its basketball shoe lines, sold direct-to-consumer and in other retailers' stores. For example, Foot Locker (NYSE:FL) reported a 39 percent jump in profits for the second quarter, yielding a net income of $92 million. The company had basketball shoes and the Nike brand to thank.
-See this Seeking Alpha transcript
-See this Internet Retailer article
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