On December 22, 2023 Beijing time, American sports brand Nike (Nike) released its Q2 2024 performance report.
The report shows that Nike achieved a revenue of 13.4 billion US dollars (approximately 95.664 billion yuan) in this quarter, a year-on-year increase of 1%; The company's gross profit margin increased by 170 basis points to 44.6%; Inventory decreased by 14%.
Among them, Nike's self operated business revenue was 5.7 billion US dollars, a year-on-year increase of 6%; Nike's digital business revenue increased by 4% year-on-year.
John Donahoe, Global President and CEO of Nike Group, said, "The results of the second quarter demonstrate how Nike has steadily developed in key areas of innovation and growth. We will focus on innovative products, unique brand stories, and differentiated market experiences."
Nike Greater China achieved a revenue of $1.863 billion in the second quarter of the 2024 fiscal year, an increase of 8% year-on-year on the basis of unchanged exchange rates, achieving positive growth for five consecutive quarters.
This year's "Double Eleven" shopping festival, Nike ranked first on the sales list of Tmall sports brands. Compared to the same period last year, the average consumption per member has increased by over 30%.
Nike pointed out that in addition to traditional e-commerce, brands have shown outstanding growth in content social and private channels. "Nike has nearly 4000 products presented through short videos and live streaming, and the sales of live streaming on all platforms have achieved double-digit growth year-on-year, with the number of short videos increasing by 2.5 times year-on-year."
In terms of offline retail, Nike Greater China achieved double-digit growth in offline sales this quarter. As of the end of this fiscal quarter, over 500 partner stores have joined Nike's membership system.
In October this year, Nike launched a collaborative series of products with Chinese female designers for the first time. At the 6th CIIE held in November, Nike announced that it will build the Nike China Sports Research Laboratory (NSRL) at its Greater China headquarters in Shanghai in 2024.
Tang Ruoxiu revealed that digital upgrading will be the key word for brands to build in China in the future. "Nike's team in Greater China is bridging the digital ecosystem and self operated and partner stores to build a fully connected consumer experience. In the fiscal year 2024, we will continue to expand our competitive advantage in the Chinese market."
During the 2023 reporting period (June 1, 2023 to November 30, 2023), Nike generated revenue of $26.3 billion in the first half of the fiscal year, of which $3.598 billion (approximately RMB 25.686 billion) came from the Greater China region.
Adidas, another sports brand giant, generated revenue of 10.617 billion euros in the first half of the year, with Greater China contributing 1.65 billion euros (approximately 12.97 billion yuan).
In the first half of this year, the four major domestic sports brands (Anta, Li Ning, Tebu, and 361°) continued their upward trend in revenue: Anta led with a revenue of 29.65 billion yuan, Li Ning followed closely with 14 billion yuan, and Tebu and 361° Deg; I submitted my transcripts worth 6.5 billion yuan and 4.3 billion yuan respectively.
Four companies joined forces to cut a revenue of 54.4 billion yuan in the first half of the year, which is highly expected to lead the domestic sports brand group to once again break through the annual revenue barrier of 100 billion yuan.
By comparison, both Anta and Li Ning have surpassed Adidas in the Chinese market. Anta Group's semi annual revenue of 29.65 billion yuan also leads Nike's revenue of 25.686 billion yuan in the Greater China region in the first half of the fiscal year.
The online sales of domestic sports brand groups are also progressing.
In Nike's top spot on the Sports Outdoor Double Eleven sales chart, ANTA Group's ANTA and FILA brands closely follow American brands, ranking second and third.
The other three major domestic brands are all on the list: Li Ning ranks in the top five, Tebu and 361& Deg; This year we have reached the 10th and 13th positions. In addition, the number of national sports cards on the list continues to increase, from 6 last year to 7: Hongxing Erke, Jordan, and Pick are also on the top 20 list.