Global sport giant giant Nike announced yet another quarter of stellar results on Thursday (March 21, 2019) when it reported third-quarter global revenues increased seven percent hitting a total of $9.6 billion in sales.
The Portland-based company emphasized the grown of Nike-Direct digital sales, which were led by sales in North American, where Nike said it has its most direct connection with consumers.
Company CEO Mark Parker highlighted strong demand for multiple footwear silhouettes including VaporMax, Air Max 270, along with classic models including Air Max 95 and 97 and Tuned Air. Within Nike Sportswear the company sited double-digit growth as led by the enduring Air Force 1 along with high demand for Air Jordan 1.
Providing some detail on the performance of its U.S. SNKRS app during the quarter, Nike said, ” Our SNKRS app, in particular, continues to be a powerhouse in the world of digital commerce. For the quarter, SNKRS traffic and revenue were up triple digits, 17 of the top 20 SNKRS launches had 100-percent sell through. And during the record-breaking Air Jordan 11 Concord launch, our digital eco-system showed its ability to handle scale and drive unrivalled energy processing on average 300 transactions per second.”
Nike acknowledged the strong demand for some of its silhouettes has provided an engine for a robust resale market. However, the brand says it has no plans to enter the business any time soon. ” Said Nike CFO Andy Campion, “We’re not focused on that slice of the market. At this time, we don’t have anything to add to that. We’re fully aware that we’re a huge part of creating that market. And that’s our focus is how do we deliver the innovation and the creative energy to the product that ultimately is going to create an opportunity there for others. Right now, we’re looking at it but we have no plans in terms of partnerships or business strategy in that particular area.”
Nike wholesale partner Foot Locker recently entered into the resale business with a $100 million investment in GOAT while online retailer FarFetch purchased Stadium Goods for $250 million.
