Nike E-Comm Business Jumps 42 Percent in Q3

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Nike E-Comm Business Jumps 42 Percent in Q3

By Jessica Binns, Apparel Contributing Editor - 03/24/2015
NIKE reported a rosy third quarter in 2014, posting $7.5 billion in revenue -- 7 percent higher than the same period a year prior.

The athletic apparel and footwear company's digital business, including traffic and conversion, was up 42 percent for the quarter and will continue to be a primary focus of innovation and investment, Mark Parker, NIKE president and CEO, said during a recent earnings call.

"We believe that's where the consumer is and is going. And that's where our brand is and is going," added Trevor Edwards, Nike brand president.

Linking experience to commerce is one way that NIKE innovates in the digital arena. The company launched its NIKE SNKRS app to coincide with February's NBA All-Stars game, enabling mobile users to view, share and purchase footwear products. Fueled in part by the app release, traffic from mobile devices exceeded desktop for the first time in company history, Parker noted.

Premium apparel, such as its Epic Lux and Epic run tights, is doing well for the business, though the company's core running segment is not performing as well as premium running and running-inspired products.

"Innovation is not reserved for the upper price point premium product," Parker was quick to point out. "It runs up and down the price spectrum, and that's a very, very important part of our growth strategy going forward."

DTC revenue grew 15 percent, largely due to the robust dot-com business, 7 percent comp store sales growth and new store openings, according to CFO Donald Blair, who will retire in July. 

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