Nike's womenswear, e-commerce soar

Nike (NYSE:NKE) more than topped its expectations for the first quarter of fiscal year 2016, due in large part to the recent push of its womenswear and investments in e-commerce.

During a recent earnings call, Trevor Edwards, president of Nike brand, said revenue from the women's business grew by double digits and e-commerce was up 46 percent, Business Insider reported.

The growth follows a big advertising push in the women's division earlier this spring, known as the #BeForIt campaign, which encouraged women to challenge themselves and push harder.

Earlier in the year, Nike predicted that the women's division could reach $2 billion in sales by 2017.

In total, revenue for Nike grew 5 percent in the quarter to $8.4 billion. Brand revenue grew 15 percent, direct-to-consumer was up 21 percent, and comparable store grew 7 percent.

"Nike is on a relentless pace and we have no intention of slowing down," said Mark Parker, Nike's CEO and president, in an earnings call. "Leveraging our portfolio is one way we sustained growth. The other, of course, is through innovation. We showed the power of our scale this quarter as we share our technologies from one category to another. And from one brand to another. This is how innovation can create separation and this is something only Nike can do."  

Many of Nike's competitors are also ramping up their focus on female athletic wear such as Foot Locker's new women's yoga brand, SIX:02, and Dick's Sporting Goods' Chelsea Collective.

Nike's e-commerce sales have been rapidly rising in the past few years. The unit was up 59 percent last year, crossing the $1 billion threshold for the first time, and clocking in a record-breaking 70 percent sales increase for e-commerce in one quarter.

"Digital is an accelerator throughout Nike," Parker said. "It's a platform that enables new ways of working and new methods of manufacturing. It drives how we connect with consumers, how we serve them and how we engage with one another. It helps to fuel our growth by serving our consumers whenever they want Nike products for any sport all over the world." 

For more:
-See this Business Insider article
-See this Seeking Alpha transcript

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