It was another strong quarter online for Nike Inc., as the footwear brand reported online sales increased 56% over the same period last year. Nike did not disclose e-commerce sales in dollars.
This follows its fiscal second quarter results, in which Nike grew 50% online. The footwear giant has stated a goal of reaching $7 billion in online sales by 2020. Internet Retailer estimates that Nike, ranked No. 61 in the Internet Retailer Top 500 Guide, had online sales of $1.0 billion in 2015.
In a conference call with analysts Tuesday, Nike executives provided an update on several digital initiatives to reach that goal. For example, last week, at a New York City event it called Innovation for Everybody 2016, Nike previewed a personalized mobile app to launch in June that will tie its Nike+ loyalty program with three apps it operates—Nike Running (an app that streams music and tracks runners’ pace, distance and other metrics), Nike Training Club (instructor-narrated fitness routines that track progress and reward efforts) and Nike SNKRS (an app that gives users the inside scoop on iconic Nike sneaker designs and first crack at buying new sneaker brands before they reach stores).
The new app will combine fitness tracking, personalized training tips and classes, loyalty rewards and an online store that recommends products based on users’ sizes, favorite sports, colors and athletes. Users will also get first access to limited product launches via the app.
“The new Nike+ app makes it all easy and personal and puts all at your fingertips,” CEO Mark Parker told analysts on a call transcribed by SeekingAlpha.com. “It’s the key to building deep and rich relationships with the athlete in this new era of personalized performance. And not only does digital create connections with the athlete, it also accelerates our business end to end.”
During the quarter, Nike also launched a web series called Margot versus Lily, a collection of web episodes about two sisters aimed at inspiring women to accomplish their goals. The women in the series use the Nike+ Training Club app, and Nike products worn by the actresses are linked within the videos for purchase online.
“The response has been extraordinary with 80 million views to date,” Nike brand president Trevor Edwards said on the call. “We’ve also seen a considerable increase in downloads of the Nike+ Run Club and the Nike+ Training Club with members becoming more active and buying more, thanks in part to the links in each episode to the products worn by the characters. These services are still just the tip of the iceberg, given the incredible promise of the new Nike+ app and the expanded digital services.”
- Sales of $8.03 billion, up 7.6% from $7.46 billion in the same quarter of the prior year.
- Net income of $950 million, up 20.1% from $791 million.
For the first nine months of fiscal 2016, Nike reported:
- Sales of $24.13 billion, a 5.7% increase compared with $22.82 billion for the first three quarters of fiscal 2015.
- Net income of $2.91 billion, up 20.7% from $2.41 billion.