The famous manufacturer of sporting goods announced the successful completion of the next quarter and spoke about plans for the near future.
Company Nike published a report on the results of the next financial quarter. It reportedly generated $11.2 billion in revenue, up 9% from the same period the previous year. Net income increased by 12% to $1.3 billion. It was also possible to finally normalize the situation with excess stocks. Excellent results, considering all the economic difficulties of today.
At the same time, growth in the digital segment amounted to 84%. This is third quarter in a rowwhen the company's online sales increase by approximately 80%. Nike Digital now accounts for 25% of business in North America, while Nike's mobile app users grew by 200% in the quarter, according to CEO John Donahue during a conference call with analysts.
Simultaneously with the report, the company's management also spoke about plans for the near future. Despite the growth of online sales, Nike will not abandon the development of the offline segment and plans to open 30 more branded stores. The company will continue to focus on direct channels, paying less and less attention to wholesale partners. In the past quarter, sales of Nike Direct, the direct-to-consumer business unit, increased by 32% to $4.3 billion, driven primarily by the digital segment.
Wholesale sales for Nike are gradually fading into the background. Over the past 3 years, the company has reduced the number of retail partners in North America by 30%. And this even led to the reduction of a number of head office employees responsible for interacting with wholesalers.
The main areas in which investments will be made are goods for women, clothing, digital technologies and brand Jordan. In the past quarter, the retailer also expanded its range of products for children and will continue to actively develop this sector.