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The retailer's ecommerce sales suffered in all markets except North America, where they grew 1% in Q3 fiscal 2024.

Nike Inc. reported that digital sales decreased in its fiscal third quarter ended Feb. 29, 2024, as revenue increased.

In a recent earnings call with investors, chief financial officer Matthew Friend said Nike’s target for the past year has been “to achieve the 40% digital metric.” So far, the company has not disclosed how far along it is toward hitting that share of sales through digital channels.

“We continue to see a heavy level of promotional activity happening across digital, across all of our geographies,” Friend said.

In Q3 of fiscal 2024, consolidated Nike revenue grew to $12.43 billion from $12.39 billion in the year-ago period. Among that, Nike Direct accounted for $5.4 billion. Nike Direct refers to the retailer’s direct-to-consumer sales, both in physical stores and online. Meanwhile, Nike wholesale revenue grew 3% to $6.6 billion.



Nike ranks No. 8 in the Top 1000, Digital Commerce 360’s database of the largest North American e-retailers by online sales. It’s also the highest-ranking Apparel/Accessories retailer in the Top 1000.

CEO John Donahoe said in the earnings call that “Nike is not performing in our potential.” To address that, he said Nike must lean into its wholesale business “to elevate our brand and grow the total marketplace.”


Nike Digital sales see bright spot in North America

Nike Digital, encompassing global sales through the retailer’s website and mobile app, decreased 4% in Q3. The Nike brand, specifically, decreased digital sales 3%.

In North America, Nike Digital sales increased 1% year over year. However, that was the only regional digital sales growth. In Europe, the Middle East and Africa (EMEA), Nike Digital sales declined 10%. They also fell 13% in what Nike refers to as the Greater China region, and 6% in Asia-Pacific and Latin America.

Donahoe said Nike’s physical retail sales in China outperformed digital sales.

“And then within digital, Tmall, which was historically the biggest digital driver, is experiencing less growth,” Donahoe said. “We’re still the number one sports brand on Tmall.”


He added that Nike is also expanding its “growth into social commerce, which is the growing digital channel in China.” Specifically, Nike is planning to facilitate sales through short-form video platform Douyin that ByteDance launched in China in 2016. ByteDance also owns social media platform TikTok.

Tmall is an Alibaba-owned marketplace, along with Taobao. Taobao ranks No. 1 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the largest such marketplaces by gross merchandise value. Tmall ranks No. 2.

Nike Direct sales grow overall

Despite the 4% drop in Nike Digital sales, the retailer’s overall direct-to-consumer sales still grew “slightly” year over year, Friend said. Nike did not quantify its growth in DTC sales.


Donahoe said Nike Direct “will continue to play a critical role” as the retailer makes adjustments to its sales strategy.

Nike earnings

For the fiscal third quarter ended Feb. 29, 2024, Nike reported:

  • Revenue grew to $12.43 billion from $12.39 billion the prior year.
  • Nike Digital sales decreased 4% year over year.
  • Direct-to-consumer revenue was $5.4 billion.
  • Wholesale revenue was $6.6 billion, up 3% year over year.

For the nine months ended Feb. 29, 2024, Nike reported:

  • Revenue grew to $38.76 billion from $38.39 billion in the prior-year period.
  • Nike-brand revenue was up 2% to $11.9 billion.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s Nike report.

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