Nike Inc. reported it grew total revenue 17% to $13.32 billion in its fiscal second quarter ended Nov. 30, 2022. Nike also said it grew its digital sales by 34% globally, but it did not provide a dollar figure.
The retailer reported that its Nike Direct sales, or sales made directly to consumers online and in Nike’s physical stores rather than through wholesale, grew 16% to $5.4 billion. Chief financial officer Matthew Friend said Nike Digital, the brand’s ecommerce sites and apps, grew 34% to fuel its direct-to-consumer sales growth. Furthermore, digital sales of its Nike-brand items grew 25% in the retailer’s second quarter of fiscal 2023.
Nike ranks No. 10 in the Top 1000, Digital Commerce 360’s database of the largest North American e-retailers.
Nike Digital sales growth by region
In North America specifically, Nike Digital grew 31% in the fiscal second quarter, Friend said. He attributed that to increased website traffic and repeat purchases from its members. In Europe, the Middle East and Africa, Nike Digital grew 62% year over year.
“Membership was an accelerator as members drove over 85% of demand during Cyber Week, our highest demand week ever in EMEA,” Friend said.
In China, Friend said, Nike Digital grew 9% year over year in the fiscal second quarter. Gen Z demand for Nike grew 45% on Tmall on Nov. 11, Friend said. Nov. 11 is China’s “Singles’ Day” sales event.
Tmall is Alibaba Group Holdings’ business-to-consumer marketplace on which foreign and domestic merchants sell to Chinese consumers. It ranks No. 2 in Digital Commerce 360’s top 100 global online marketplaces database. Meanwhile, Nike also led as the No. 1 store on Tmall’s kids’ footwear channel that day, he said.
Friend said Nike Digital also grew 35% year over year in Asia Pacific and Latin America.
“Nike’s results this quarter are a testament to our deep connection with consumers,” said president and CEO John Donahoe. “Our growth was broad-based and was driven by our expanding digital leadership and brand strength.”
Donahoe attributed the retailer’s digital growth to “having the best apps in the industry or on the home screen of people’s mobile apps, which is that scarce and valuable real estate. And we have a really clean experience across our apps and digitally, including Nike.com.”
Total revenue from Nike brand grows in Q2
Nike-brand total revenue accounted for $12.72 billion, which is up 18% from the year-ago period. Among Nike-brand products, the footwear category accounted for $8.50 billion in the fiscal second quarter. That’s up 25% from $6.78 billion in Q2 of fiscal year 2022.
Apparel accounted for $3.79 billion in Nike-brand sales. That’s up 4% from $3.65 billion in the year-ago period. Meanwhile, Converse-brand total revenue grew to $586 million, up 5% year over year from $557 million.
For the fiscal second quarter ended Nov. 30, Nike reported:
- $13.32 billion in revenue, a 17% increase over the same period in the prior year.
- Nike Digital, the retailer’s websites and applications array, grew 34%.
- Direct-to-consumer sales grew to $5.4 billion, up 16% from the year-ago period.
For the six months ended Nov. 30, Nike reported:
- $26.00 billion in revenue, a 10% increase from $23.61 billion in the year-ago period.
- $16.62 billion in footwear sales from its Nike brand. That’s up 15% year over year from $14.50 billion.
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