Nike expects permanent change for online sales

Nike expects permanent change for online sales

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Sports apparel company Nike has seen a huge increase in online sales, which is coming back from a corona virus drop.

The U.S. company saw a digital sales rocket of 82% in the June-August quarter, offsetting a drop in revenue in its stores.

On Tuesday, Nike recorded revenue of $ 10.6 billion ($ 8.3 billion) as many of its key markets, including China, recovered.

Its previous quarter revenue was down more than a third as it handled store closures and locks worldwide.

Nike CEO John Donahue said switching to online sales could be a permanent trend.

“We know that digital is the new nature. Today consumers are digitally grounded and will not simply withdraw,” Mr Tonaho said.

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Sales are growing in its core markets, including China, Japan, South Korea and the UK, while its core North American market is declining.

Shares of Nike rose more than 10% in late trading in the United States as results were better than Wall Street expected.

Direct sales

Nike releases limited edition shoes using its website and shopping apps.

The sportswear company has been transforming itself to sell directly to customers over the past few years, reducing its store presence and retail partners.

Although many gyms are closed during epidemics, sportswear makers have expressed strong demand for more casual wear as they work out more and exercise at home.

Competitive adidas said last month that yoga band maker Lulu Lemon was improving competitive trends as it grew its online business by 157%.

Like many retailers, Nike helps prevent the spread of the virus by limiting the number of people who can enter its stores at once.

But when people visit, they come with the intention of buying, Nike said.

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Cory Weinberg

About the Author: Cory Weinberg

Cory Weinberg covers the intersection of tech and cities. That means digging into how startups and big tech companies are trying to reshape real estate, transportation, urban planning, and travel. Previously, he reported on Bay Area housing and commercial real estate for the San Francisco Business Times. He received a "best young journalist" award from the National Association of Real Estate Editors.

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