Digital Continues to Propel Nike
The Swoosh experienced a 54-percent increase in Digital sales for the period ended Feb. 28, led by growth in North America where the region had its first-ever quarter with more than $1 billion in digital revenue. NIKE Direct sales increased 15 percent on a currency-neutral basis.
Third quarter growth in North America (-10% overall, including -9% for footwear) was hampered by a more than three-week inventory supply delay that negatively impacted wholesale shipments. Starting in late December, container shortages and West Coast port congestion began increasing the transit times for inventory. Nike believes it will recapture lost Q3 sales in the year’s final reporting period ending May 31.
The company isn’t yet offering specific guidance about FY22, which commences June 1, but confirms orders are “exceeding pre-pandemic levels of business.” In Q4, Nike is forecasting approximately 75 percent revenue growth, partly bolstered by easing government-mandated restrictions across Europe in April and slowly improving inventory transit times in North America.