Beaverton, Ore. — Nike Inc. (NYSE: NKE), the Beaverton-based footwear giant, has reported its revenues were $10.6 billion for its 2021 fiscal first quarter, which ended Aug. 31. The revenue represents a decrease of 1 percent from the same period in 2019, with its direct sales at $3.7 billion, up 12 percent, and Nike Brand digital sales swelling by 82 percent.
The digital sales growth resulted from e-commerce increases across North America, Greater China, Asia Pacific, Latin America, Europe, the Middle East and Africa.
According to the company, its first-quarter revenue performance was impacted by strong Nike Brand digital growth, offset by lower revenue in its wholesale business and Nike-owned stores. Nearly all of the Nike-owned physical stores were open during the quarter.
Despite the open stores, Nike experienced year-over-year declines in physical retail traffic across the marketplace due to COVID-19 impacts and safety-related measures.
Nike’s selling and administrative expenses decreased 11 percent to $3 billion, with demand creation expense down 33 percent at $677 million primarily due to lower marketing spend as many live sporting events were postponed or cancelled. Additionally, operating overhead expense decreased 1 percent to $2.3 billion as lower travel and related expenses were slightly offset by restructuring costs and continued investment in digital capabilities, both of which are part of the brand’s Consumer Direct Acceleration program.
Inventories for Nike were $6.7 billion, up 15 percent compared to the prior year period, and down 9 percent from the previous quarter as the company continues to strategically manage excess inventory from store closures and lower wholesale shipments globally during the fourth quarter of fiscal year 2020.