On its quarterly conference call, the company said digital
commerce revenue grew 38% in the second quarter, fueled by a strong start to
the holiday season. Digital sales increased more than 70% in North America on
Black Friday while buying members grew 45% from last year.
In China, Nike generated around $0.5 billion in revenue on
Single’s Day, reflecting the strength in its brand and product portfolio. The
company stated that China is the world’s most compelling digital marketplace in
many ways. While the digital share of the business in Greater China is Nike’s
largest compared to other geographies, the company still sees massive potential
in the region.
Nike continues to focus on investing in areas which have the greatest potential to drive growth and the company is looking to build capabilities which will truly differentiate it. Following the results announcement, a number of analyst firms have raised price targets on the stock.
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