American sports giant Nike reported growth in profit and sales in the second quarter, as a surge in online sales offset the impact of declines in the group’s wholesale business and self-owned store revenue.
In the three months ended December 30, 2020, profit increased from US$2.22 billion in 2019 to US$1.25 billion, an increase of 12%. However, gross profit margin fell 90 basis points to 43.1%, mainly due to increased promotional activities to reduce excess inventory.
Revenue in the second quarter increased by 9% to US$22.2 billion, mainly driven by the performance growth of various regions in Greater China, which grew by 24%.
Nike brand revenue grew 8% to $10.7 billion, benefiting from a 32% growth in Nike’s direct business and an 84% surge in Nike brand digital sales. Converse revenue decreased by 4% to US$476 million, due to double-digit growth in digital business and performance growth in Asia, which was offset by declines in Europe and North America, mainly due to tight supply and the shift of strategic distribution centers. To.
CFO Masdfssdfstt Friend said: With good inventory in all regions, the return to growth in revenue is a good testament to our digital strength, coupled with disciplined market and Financial Management. Going forward, we will focus on accelerating our strategic vision of “Accelerating Direct-to-Consumer” and driving sustainable and long-term growth and profitability.
Implementing a digital-first supply chain
Friend on company earnings call The company will study several strategies and financial management methods, the meeting said. This will include optimizing supply and demand with speed and agility, maintaining healthy inventory levels, and increasing full-price sales.
He added: Starting from the first half of the year, the company will make full use of the company’s recovery ability and financial strength to accelerate investment levels at a relative speed. Our investment focus will be on several key areas. We will restructure investments that create consumer demand, launch major sports events, including athletes and innovative technologies, and expand our reach and influence into significant growth opportunities across women’s ready-to-wear, digital and Jordan brands.
Nike will also seek to establish a digital-first supply chain with a strong technical background and analytical foundation to optimize service, cost, convenience and sustainability. sex.
We will accelerate the technological implementation of our operating model to transform us and consumers from online to offline services, digital marketing, personalization and digital supply and demand management , speeding up direct interactions and service delivery. </p
