Nike Beats Sales Expectations During Coronavirus Pandemic Due to Rise in Online Shoppers
Digital sales grew by 36% in the third quarter.
Nike has beaten its sales estimates during this current period of COVID-19 disruption thanks to a rise in online shoppers. The Business of Fashion reported earlier this week that Nike’s digital sales climbed by more than 30% in Greater China, while physical sales dropped by 5% in the same quarter due to store closures.
The sportswear giant was forced to close its stores throughout the United States and Europe as coronavirus’ threat grew. As The BOF reports, chief executive John Donahoe told analysts in his first earnings call since rising to the title that “at a time when people were confined to their homes, we moved swiftly to leverage our digital app ecosystem and Nike Expert Trainer network.”
As a result, Nike’s overall digital sales grew by 36% in the third quarter leading up to February 29, which equates to almost a tenth of all revenue made during the brand’s 2019 fiscal period. It is reported that 80% of Nike’s stores in China have reopened, with its current-quarter sales expected to be flat in the region.
According to Refinitiv IBES data, Nike’s total revenue rose by 5.1% to $10.10bn USD in Q3, surpassing the $9.8bn USD expectations set by analysts.
In other news, eNASCAR’s inaugural virtual race became the most-watched eSports event of all time.
