Mixed Performance in Apparel and Footwear Sector Recovery as Nike Online Sales Jump by 82% but Under Armour Sales Drop by 25%

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According to the research data analyzed and published by Stock Apps, Nike’s digital sales increased by a whopping 82%. Digital purchases accounted for almost a third of the business reported during that quarter.

During the previous quarter which ended on May 31, 2020, online sales accounted for 75% of all sales. For the fiscal year 2020 as a whole, the increase was 47%.

User Activity on Nike Apps Shoots 80% in China, 1M+ Downloads Globally for Four Consecutive Months

Nike spent $3.59bn on advertising in 2020, closed 5.1% of its retail shops amid pandemic
Photo by REVOLT on Unsplash

Nike is the leading brand in athletics apparel globally according to data from Statista. For the 12-month period between January 2019 and January 2020, annual sales totalled $40.78 billion. Its revenue during Q4 FY20 was $6.3 billion, marking a 38% drop year-on-year (YoY).

The figure rose to $10.6 billion in Q1 FY21. Part of the reason for this improvement was its efforts to keep up with the changes in consumer trends. In China, for instance, user activity on Nike’s apps shot up 80% during the lockdown. Moreover, it’s Run Club app had over 1 million downloads globally for four months running.

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Lululemon also capitalized on consumer trend shifts during the fiscal quarter which ended on August 2, 2020. Sales increased by 2% to $903 million during the period with online sales grew by 157%. As a result, net revenue increased by 155%.

On the other hand, Under Armour reported $707.6 million in revenue during Q2 2020. Though this was significantly higher than the expected $543.8 million, it coincided with a net loss of $182.9 million. The brand estimates a revenue drop ranging between 20% and 25% during Q3 2020.

According to the US Commerce Department, apparel sales are still struggling as there was a 20% drop in August 2020. However, NPD shows that sports bras, shorts and sweatpants online sales are on the rise. Indeed, brands that can quickly change their marketing tactics can continue to thrive.

Notably, its second-quarter results were better than expected, with $707.6 million in revenue against an expected $543.8 million. It marked a 41% drop from $1.19 billion in the previous year’s quarter. Net loss increased to $183 million from $17.3 million YoY.

Read Also:  NIKE IS THE MOST ADMIRED BRAND IN AFRICA.
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Under Armour’s apparel sales dropped by 42% as footwear and accessories revenue declined by 35% and 47%, respectively. However, due to the strengthening of its direct-to-customer sales, gross margins grew to 49.3%.

Adidas, on the other hand, reported a loss in Q2 2020 but is optimistic, eyeing a recovery in Q3. Its eCommerce sales during the quarter spiked by 93%, growing at triple-digit rates in April and May 2020.

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Mixed Performance in Apparel and Footwear Sector Recovery as Nike Online Sales Jump by 82% but Under Armour Sales Drop by 25% - Brand SpurMixed Performance in Apparel and Footwear Sector Recovery as Nike Online Sales Jump by 82% but Under Armour Sales Drop by 25% - Brand Spur

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Mixed Performance in Apparel and Footwear Sector Recovery as Nike Online Sales Jump by 82% but Under Armour Sales Drop by 25% - Brand SpurMixed Performance in Apparel and Footwear Sector Recovery as Nike Online Sales Jump by 82% but Under Armour Sales Drop by 25% - Brand Spur

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- Advertisement -Mixed Performance in Apparel and Footwear Sector Recovery as Nike Online Sales Jump by 82% but Under Armour Sales Drop by 25% - Brand SpurMixed Performance in Apparel and Footwear Sector Recovery as Nike Online Sales Jump by 82% but Under Armour Sales Drop by 25% - Brand Spur