Jordan Brands led growth among segments, women’s led genders and Nike Direct grew at three times the pace of wholesale sales in Nike’s fiscal year ended May 31, 2021.
Sales through Nike Direct catapulted 30 percent on a currency-neutral basis (32.2 reported) to $16.4 billion. The accelerated shift drove the gains to online selling tied to the pandemic and its Consumer Direct Offense strategy that calls for growing direct connections with consumers.
Digital growth was accelerated in June 2020 by introducing its Consumer Direct Acceleration strategy that called in part to drive sales through Nike Digital and its own stores and select strategic partners who share the brands’ focus on delivering “premium, consistent and seamless consumer experiences.”
On a currency-neutral basis, Direct sales growth had slowed to an 8 percent gain in fiscal 2020 as 49 percent growth in digital helped offset challenges facing owned-store growth due to store closures last spring.
Prior to fiscal 2020, Direct growth had been steadily growing at a double-digit pace, including gains on a currency-neutral basis of 16 percent in fiscal 2019, 12 percent in fiscal 2018 and 18 percent in fiscal 2017.
Overall, Nike Direct sales represented 38.7 percent of sales in fiscal 2021, up from 34.8 percent in fiscal 2020. In fiscal 2011, direct-to-consumer sales accounted for only 16 percent of sales.
Sales to wholesale customers saw a recovery, rising 10 percent on a currency-neutral basis (11.8 percent reported) in fiscal 2021 to $26.0 billion. In fiscal 2020, wholesale sales were down 7 percent due to the impact of store closures last spring. Wholesale growth on a currency-neutral basis had been 10 percent in fiscal 2019, 2 percent in fiscal 2018 and 5 percent in fiscal 2017.
Wholesale revenues accounted for 61.2 percent in fiscal 2021, down from 65.1 in fiscal 2020 and 83.6 percent in fiscal 2011.
Jordan Brand’s Revenues Gain 28 Percent
Among segments, Jordan Brand revenues expanded 28 percent on a currency-neutral basis (30.5 percent reported) to $4.71 billion. The gains for Jordan Brand, which is seeing a major push in apparel, built on top of gains of 16 percent in fiscal 2020 and 12 percent in fiscal 2019. Jordan Brand saw a rare decline in fiscal 2018 of 9 percent.
Nike has only been reporting Jordan Brand sales out separately since fiscal 2016 when the brand’s sales were $2.75 billion.
Sportswear sales grew 20 percent on a currency-neutral basis (22.5 percent reported) to $15.1 billion. Sales in the Sportswear segment eased 1 percent in fiscal 2020 but still represented the best segment performance for the Nike Brand. Sportswear’s sales climbed 21 percent in fiscal 2019, 8 percent in fiscal 2018 and 17 percent in fiscal 2017.
The Sportswear segment, which represents “sports-inspired lifestyle products,” is Nike’s largest segment at 42 percent of overall revenues. Sales have tripled over the last decade from $5.2 billion in fiscal 2011. The growth reflects a reclassification of categories, including a significant portion of former Nike Basketball sales shifting to Sportswear.
Running revenues climbed 3 percent on a currency-neutral basis (4.1 percent reported) to $3.99 billion. Running revenues on a currency-neutral basis had declined 12 percent in the pandemic-impacted fiscal 2020 after expanding 4 percent in fiscal 2019 and 5 percent in fiscal 2018.
Training revenues advanced 7 percent on a currency-neutral basis (8.1 percent reported) in fiscal 2021 to $2.91 billion. Training sales were down 13 percent in fiscal 2020 but have generally been a slower grower for Nike for several years. Sales were up 3 percent in fiscal 2018 and flat in fiscal 2017.
Football (Soccer) revenues improved 4 percent on a currency-neutral basis (6.8 percent reported) to $1.68 billion. The category is impacted by the World Cup, Euro Cup and other major events supporting jersey sales. Sales were down 14 percent in fiscal 2020, off 6 percent in fiscal 2019 and grew 5 percent in fiscal 2018.
Nike Basketball sales increased 10 percent on a currency-neutral basis (12.2 percent reported) to $1.69 billion. Sales were down 4 percent in fiscal 2020 after expanding 9 percent in fiscal 2019, rising 14 percent in fiscal 2018 and sliding 5 percent in fiscal 2017.
Women’s Segment Sales Climb 20 Percent
Among genders, Women’s led the way, jumping 20 percent on a currency-neutral basis (22.2 percent reported) to $8.6 billion. Women’s sales were down 3 percent in fiscal 2020, increased 11 percent in fiscal 2019 and inched up 2 percent in fiscal 2018.
Men’s sales grew 11 percent on a currency-neutral basis (13.1 percent reported) in fiscal 2021 to $18.9 billion. In fiscal 2020, sales were down 4 percent. Sales grew 10 percent in fiscal 2019 and 5 percent in fiscal 2018.
Kids’ sales rose 15 percent on a currency-neutral basis (16.9 percent reported) to $5.88 billion. Currency-neutral sales were down 3 percent in fiscal 2020 after climbing 11 percent in fiscal 2019.
China Paces Regional Gains
Among regions, Greater China saw the strongest gains, climbing 19 percent on a currency-neutral basis (24.1 percent reported) to $8.3 billion. Sales climbed 11 percent in fiscal 2020 and 24 percent in fiscal 2019.
In the North America region, sales advanced 19 percent (18.6 percent reported) to $17.2 billion. Sales in the region were down 9 percent in fiscal 2020 and gained 7 percent in fiscal 2019.
EMEA sales rose 17 percent on a currency-neutral basis (22.6 percent reported) to $11.46 billion. EMEA sales were off 1 percent in fiscal 2020 and climbed 11 percent in fiscal 2019.
APLA sales were up 8 percent on a currency-neutral basis (6.2 percent reported) to $5.34 billion. APLA sales inched up 1 percent in fiscal 2020 and jumped 13 percent in fiscal 2019.
Overall, Nike Brand sales grew 14 percent (9.9 percent reported) to $28.7 billion. Nike Brand sales were down 2 percent in fiscal 2020 after expanding 11 percent in fiscal 2019 and 5 percent in fiscal 2018.
Photos courtesy Nike
