Nike's Q3 2019
- Revenues increased 13% to $9.8 billion, up 8% on a currency-neutral basis.
- Operating overhead increased 17%, driven by continued investment in NIKE’s digital transformation, as well as year-over-year compensation related accruals.
- In Q3, growth was led by NIKE Digital, which on a currency neutral basis grew 36% globally.
- Nike delivered 24% currency-neutral revenue growth in Greater China, led by NIKE Direct, with digital commerce up over 60%.
Nike’s SNKRS App traffic and revenue were up triple digits in the quarter and, during the company’s record-breaking Air Jordan 11 Concord launch, its digital ecosystem showed its ability to handle scale processing on average 300 transactions per second.
“SNKRS app to me is really a signal of the future potential of how we connect with consumers in a deeper way with storytelling as part of that effort,” said Parker.
Additionally, more than 50% of transactions are with members in Nike’s House of Innovation stores in New York and Shanghai, while, across Nike’s fleet, shoppers using the NIKE app at Retail average 40% higher sales than those that don’t.
Nike has also fully digitized its palette of over 6,000 footwear materials, allowing design teams to build on one another’s work and quickly adapt to market trends.
Moving forward, Nike plans to invest in new digital member services, data and analytics, demand sensing technology, technologies such as RFID that enable Connected Inventory across the marketplace, and in a new editorial content engine.
“There are teams all over NIKE piloting new ideas and proving-out concepts,” said Parker. “We’re testing, learning and optimizing at an incredible pace. But the real key is to turn these new digital capabilities into growth at scale.”