The brand plans to invest more in e-commerce in 2013.
Kevin Woodward , Senior Editor
Buoyed by 30% growth in e-commerce sales in fiscal 2013 over 2012, footwear manufacturer Nike Inc. is investing in bolstering its online and mobile sales programs.
E-commerce sales are grouped into a broader category, which Nike calls direct-to-consumer that also include its bricks-and-mortar retail stores. Direct-to-consumer revenue increased 22.9% to $4.3 billion in 2013 from $3.5 billion in 2012. Nike’s fiscal year ends May 31. Nike does not release e-commerce sales figures. Nike is No. 72 in the Internet Retailer Top 500 Guide, with an estimated $422.1 million in 2012 online sales.
“Direct-to-consumer, and specifically the online part of direct-to-consumer, is a huge priority at Nike, and we are investing in that platform fairly aggressively, I would say,” said Mark Parker, president and CEO, during a conference call with analysts to discuss the earnings. “We see the opportunity there is continuing on. We are investing in mobile, for example, and seeing some great results there.” Parker did not disclose how much Nike plans to spend on these investments.
Nike also might invest more in online customization, he says. “Customization continues to be actually a very strong subset of our dotcom business, and we see lots of innovation opportunities there that are quite compelling,” Parker says. “Direct-to-consumer, and again specifically the e-commerce dimension, is a huge and growing percentage of our overall business.”
Nike also made some executive changes, moving e-commerce responsibilities to Trevor Edward, who was named Nike brand president this week. He also will oversee the brand’s wholesale and retail operations. Edward, who has been executive vice president of brand and category management, also will lead all category and geographic business units. Charlie Denson, who had been Nike brand president since 2006, is retiring in January.
Jeanne Jackson, currently president of Nike’s direct-to-consumer unit, is now president of product and merchandising. Eric Sprunk moves from executive vice president of merchandising and product to chief operating officer. His responsibilities now include manufacturing, sourcing, information technology and procurement.
In addition, Thomas Clarke is now president of innovation, following his role at Nike as president of new business development.