Welp Magazine- According to the research data analyzed and published by StockApps.com, Nike’s digital sales increased by a whopping 82%. Digital purchases accounted for almost a third of the business reported during that quarter.
- During the previous quarter which ended on May 31, 2020, online sales accounted for 75% of all sales. For the fiscal year 2020 as a whole, the increase was 47%.
User Activity on Nike Apps Shoots 80% in China, 1M+ Downloads Globally for Four Consecutive Months
Nike is the leading brand in athletics apparel globally according to data from Statista. For the 12-month period between January 2019 and January 2020, annual sales totaled $40.78 billion. Its revenue during Q4 FY20 was $6.3 billion, marking a 38% drop year-on-year (YoY). The figure rose to $10.6 billion in Q1 FY21. Part of the reason for this improvement was its efforts to keep up with the changes in consumer trends. In China, for instance, user activity on Nike’s apps shot up 80% during the lockdown. Moreover, its Run Club app had over 1 million downloads globally for four months running.
Lululemon also capitalized on consumer trend shifts during the fiscal quarter which ended on August 2, 2020. Sales increased by 2% to $903 million during the period with online sales grew by 157%. As a result, net revenue increased by 155%.
On the other hand, Under Armour reported $707.6 million in revenue during Q2 2020. Though this was significantly higher than the expected $543.8 million, it coincided with a net loss of $182.9 million. The brand estimates a revenue drop ranging between 20% and 25% during Q3 2020.
According to the US Commerce Department, apparel sales are still struggling as there was a 20% drop in August 2020. However, NPD shows that sports bras, shorts and sweatpants online sales are on the rise. Indeed, brands that can quickly change their marketing tactics can continue to thrive.
The full story, statistics and information can be found here: https://stockapps.com/mixed-performance-in-apparel-and-footwear-sector-recovery-as-nike-online-sales-jump-by-82-but-under-armour-sales-drop-by-25/
