Nike witnessed a 23% increase in its direct-to-consumer business in the North American region in its last quarter. This jump was driven by an 18% improvement in same-store sales and 31% growth in online sales. Direct-to-consumer sales include those purchases made online and at company-operated stores. Nike is the largest global manufacturer of athletic footwear, apparel and equipment, and competes with Sketchers Adidas AG Steve Madden and K-Swiss
With increasing Internet penetration in emerging markets like Brazil, India and China, which together contribute approximately 22% to Nike's overall revenues, we believe online sales are poised for impressive growth.
Nike plans to boost its direct-to-consumer presence by opening between 250 and 300 new Nike-branded stores worldwide in the next five years. It also plans to invest between $500 million and $600 million over the next five years to develop the direct-to-consumer business. Nike expects mid-teens growth in its direct to consumer business, which should contribute an additional $2.2 billion to 2.6 billion in revenues by 2015.
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