The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
The sportswear giant reported net income grew to $1.87 billion in its first quarter from $1.52 billion a year earlier, beating analyst estimates. Revenue rose 16 percent to $12.2 billion, falling short of the average forecast. Digital sales were a bright spot, rising 29 percent year on year.
Nike also said it had lowered its outlook for its current fiscal year, as supply chain problems ranging from Covid-related factory closures in Vietnam (where the company produces about half of its shoes) to congestion at major ports were expected to take a bigger bite out of sales than previously expected. Shares dropped nearly 4 percent in after hours trading.
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Nike and Adidas Supplier Suspends Production at Vietnam Plant Due to Covid
The brand’s quirky running sneakers are no longer a novelty as rivals like Nike, Adidas and On launch similar styles. Yet sales continue to soar as consumers embrace its winning formula of comfort, versatility and unconventional looks.
As digital advertising costs climb, fashion brands are embracing events like in-store happy hours, trunk shows and parties in various formats to generate brand awareness and drive sales.
The activewear brand’s revenue rose 24 percent year-over-year to $2 billion, reflecting growth driven by China, a successful loyalty programme and new categories
In a post-Covid retail landscape where consumers are seduced by the convenience of e-commerce, brands are introducing technology in store in an attempt to replicate that ease.