Over the last three months, Nike has continued to transition from direct-to-consumer (D2C) to wholesale channels.
According to the footwear, apparel, and equipment company’s earnings statement, its wholesale revenues increased 5 per cent to reach US $ 7.1 billion during the quarter ended 31st May, but its reported Nike Direct revenues decreased 8 per cent to US $ 5.1 billion.
According to the announcement, sales at Nike Direct’s Nike Brand Digital were down 10 per cent while those at Nike-owned stores were down 2 per cent. During the company’s quarterly results call on Thursday, Nike President and CEO John Donahoe stated that a healthy marketplace consists of a channel mix that is driven by demand.
“We said we want to be where the consumer is, whether that’s digital or own door or wholesale, and so we’re embracing a more balanced approach to growing the whole marketplace,” Donahoe said.
The company’s channel mix would eventually be determined by the customer and settle “in a consumer-friendly way,” he continued. According to the results announcement, this change occurred during a period in which the company’s revenues decreased by 2 per cent.
According to Matthew Friend, executive vice president and chief financial officer of Nike, the company anticipates lower growth in Nike Digital over the next 12 months as a result of fewer product launches, the planned decline of some iconic footwear franchises as it strives to balance supply and demand, and a reduction in promotional activity.
