The footwear maker, now with an e-commerce presence in 40 markets around the world, says it’s getting positive feedback from its new Nike+ mobile app.

Online sales jumped by more than 50% for athletic apparel and footwear manufacturer Nike Inc. in fiscal 2016.

Nike, No. 47 in the Internet Retailer 2016 Top 500 Guide, does not break out online sales in its quarterly earnings reports, but did report a 51% year-over-year gain in online sales.  Based on its Internet Retailer-estimated e-commerce sales of $1.00 billion in 2015, Nike’s announcement suggests it sold roughly $1.51 billion online last year. It also suggests that the web now represents around 4.7% of total sales, up from 3.3% last year.

The 51% year-over-year growth online for Nike continues several years of big gains in its e-commerce business, as it has more than tripled online sales since 2012 when it brought in $409.0 million on the web.

In 2015 Nike unveiled an ambitious plan to grow its e-commerce business to $7 billion by 2020. It has rolled out a number of initiatives in the last year to get there including a much touted mobile app to streamline its multiple apps and provide a centralized location for on-the-go consumers to get personalized training, loyalty rewards through its Nike+ program, product information and fast checkout.

During a conference call with investors yesterday, Nike CEO Mike Parker said the Nike+ app began beta testing with a select audience as the company prepares for a full rollout this summer. “We’ve received very positive feedback on its simplicity and tailored features,” he told analysts on the call. “We’re excited about the enormous potential for Nike+ to unite our digital platform and deliver personalized performance at tremendous scale through products, coaching and experiences. The investments we make in mobile and on-line experiences are paying off.”

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Also central to its e-commerce growth plan has been global expansion, and Nike has made progress on that front. It launched dedicated e-commerce sites in 20 new countries in the last year, and now sells online to consumers in 40 markets around the world.

Nike executives have said omnichannel-related strategies that link stores with its mobile apps and e-commerce business are important if the company is going to meet its goal of $20 billion in online sales and $50 billion in total sales by 2020. Executives did not provide investors with an update on those efforts, which include giving more store associates mobile devices to complete transactions and help shoppers find out-of-stock items on Nike.com.

Parker did say, however, that the retail industry was in the throes of an “unprecedented transformation,” and that Nike is working hard to stay ahead. “Mobile innovation and personal services are dominating the landscape,” he said. “That’s why we invest in integrating digital and physical retail seamlessly, giving our consumers better access to the products they want…and why we’re working even closer with our best wholesale partners who share our vision for the future of retail.”

Nike did not provide details on those investments, though it did report that its operating expenses in fiscal 2016 increased 8% to $7.2 billion, partly due to investments in what it calls consumer-focused digital capabilities.

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For Nike to reach its goal of $7 billion in e-commerce sales by fiscal 2020, it will have to grow at 46.7% per year for the next four years.

For the fiscal year ended May 31, 2016, Nike reported:

  • Total sales of $32.38 billion, up 5.8% from $30.60 billion in fiscal 2015.
  • Net income of $3.76 billion, up 15.0% from $3.27 billion.
  • A 10% year-over-year comparable store sales gain.

For the fourth quarter, Nike also reported:

  • Total sales of $8.24 billion, a 6.3% increase compared with $7.78 billion in the fourth quarter of fiscal 2015.
  • Net income of $846 million, down 2.2% from $865 million.

Nike is the largest online retailer of footwear, a segment of the online apparel market analyzed in-depth in a new 37-page report Internet Retailer released this week entitled Behind the Online Apparel Boom.

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The report measures the online apparel market in North America and compares it to store sales. It also ranks the 250 largest online apparel and accessories players in North America by their primary product offering (such as shoes or sportswear) and highlights key strategies the largest and fastest-growing merchants are implementing that are partly responsible for the major shift in apparel purchases from stores onto the web.

Click here for more information.

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