Last Updated on September 24, 2020, 7:35 AM AST by Anthony Morris
Sportswear firm Nike saw a massive increase in online sales as it bounces back from a coronavirus decline.
The US company has seen digital sales rocket 82% during the June to August quarter, which has offset the falling revenue in its stores.
Nike posted revenue of $10.6bn on Tuesday as many of its key markets have recovered, including China.
For the previous quarter revenues of the company were down by more than a third as it tackled lockdowns and store closures globally.
John Donahoe, Nike chief executive, said the shift to online sales could become a permanent trend.
Donahoe added that the company knows that digital is the new normal. The consumer today is digitally grounded and will not revert back.
Sales are growing in Nike’s major markets, including Japan, China, the UK and South Korea, while the North American market, which is the core of Nike’s market, is declining.
The company’s shares rose more than 10% in late trading in the US, as the results were better than Wall Street had expected.
Nike is using its website and shopping apps to release limited-edition footwear.
Nike was transforming itself to sell directly to the customers over the past few years, reducing the store presence and retail partners.
While most of the gyms have been closed because of the pandemic, sportswear makers have reported strong demand for casual attire as more people are working and exercising at home.
Adidas said last month that it saw an improving sales trends while yoga pants maker Lululemon has posted a 157% jump in the online business.
Nike is limiting the number of people who can come into its stores at once to help in limiting the spread of the virus.
But when people do visit, they’re coming with the intent to buy, the sports giant stated.
Anthony Morris covers stories related to politics and regional developments. His in-depth reporting about governance and reforms makes him stand out in regional journalism, with a deep analysis of political trends and their impact on Caribbean communities.
