Whereas Q4 revenue decreased about 2% from the same period a year earlier, Nike full-year revenue reached a new high in its fiscal 2024.

In an earnings call with investors, chief financial officer Matthew Friend attributed the decline in Nike Digital sales to “softer traffic, higher promotions and lower sales of certain classic footwear franchises.”

Although Nike Digital has grown at about a 26% compound annual growth rate (CAGR) since the retailer’s fiscal 2019, Friend said, the company missed its targets in its fiscal Q4. Nike Digital sales “underperformed” in April and May, continuing into June, he noted. This comes as Nike continues “to drive retail sales growth at a high full-price realization,” Friend added.

Friend had said in Q3’s earnings call that Nike’s target has been “to achieve the 40% digital metric.” So far, Nike has not disclosed how far along it is toward hitting that share of sales through digital channels.

In the earnings call, president and CEO John Donahoe said Nike is “taking our challenges head on and we’re regaining our edge.”

Nike ranks No. 8 in the Top 1000, Digital Commerce 360’s database of the largest North American e-retailers by online sales. It’s also the highest-ranking Apparel/Accessories retailer in the Top 1000.

Total Nike revenue in fiscal 2024

For its full 2024 fiscal year, Nike revenue totaled $51.4 billion. That’s up 1% year over year from $51.2 billion. The full-year revenue growth comes despite a 2% year-over-year dip in Q4 Nike revenue, to $12.6 billion.

With the exception of the first COVID-19 pandemic year, 2020, Nike has grown its annual revenue in each year since 2011.

Total Nike revenue fell to about $12.61 billion in its Q4, which ended May 31, 2024. That’s down from about $12.83 billion in the year-ago period. This marks the fourth year-over-year drop in Nike revenue in a quarter since Q1 of the retailer’s fiscal 2019.

It’s the third such drop to happen in the retailer’s Q4 in that time frame — the first of which was at the onset of the COVID-19 pandemic in 2020. Moreover, Q4 2021 rebounded to outperform the same period in the two prior years.

The only non-Q4 drop in the past five years was Q1 FY21, though the drop was moderate (less than $100 million) compared to the Q4 FY20 drop of about $4 billion. That was the second quarter to have been affected by the pandemic.

Before Q4 this year, the last year-over-year drop in Nike revenue was in Q4 of its fiscal 2022.

Revenue from Nike’s namesake brand accounted for $12.1 billion of the company’s $12.6 billion total revenue across brands, which include the Jordan brand and Converse.

Nike Digital sales drop again in Q4

Nike Digital, encompassing global sales through the retailer’s website and mobile app, decreased 10% in Q4. That follows a 4% year-over-year decline in Q3 Nike Digital sales.

Similarly, Nike Direct revenue fell 8% year over year, to $5.1 billion. Nike Direct refers to the retailer’s direct-to-consumer sales, both in physical stores and online. On the opposite end, Nike wholesale revenue increased 5% year over year, to $7.1 billion, in Q4.

In North America, Nike Digital sales decreased 11% in Q4. Meanwhile, Nike store sales decreased 5% while wholesale grew 6% in the region.

In Europe, the Middle East and Africa (EMEA), Nike Digital sales declined 14% in Q4. Nike Digital sales also declined in Asia-Pacific and Latin America (APLA), down 12% while wholesale grew 9%. However, Nike Digital sales in greater China grew 8% in the quarter; wholesale grew 15% while in-store sales dropped 6%.

Nike outlook for fiscal 2025

Nike expects Q1 fiscal 2025 revenue to decline about 10%, Friend said. That includes lower Nike Digital growth, “especially in the first half of the year due to lower traffic on fewer launches.”

“This reflects more aggressive actions in managing our classic footwear franchises, continuing challenges on Nike Digital, muted wholesale order books with newness not yet at scale, a softer outlook in greater China, and a number of quarter-specific timing factors,” he said.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s Nike report.

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The company, which provides cloud-based services and an ecommerce platform for merchants, expects “a challenging season” for shoppers and retailers alike. And “we can’t say shoppers didn’t warn us,” Salesforce said. That’s because shoppers have been searching for savings and waiting to make big purchases, it said.

“After remaining largely resilient throughout four years of economic uncertainty, consumers are finally feeling the pinch,” Salesforce said in a statement. “From sustained inflation to supply chain woes, consumers worldwide have been through a lot.”

Nearly a third of global shoppers (32%) reported using alternative credit services like buy now, pay later (BNPL) more frequently this year, according to Salesforce research.

Salesforce defines the holiday season as Nov. 1 through Dec. 31. In North America, 76 of the Top 2000 online retailers use Salesforce as their ecommerce platform, according to Digital Commerce 360 data. In 2022, those 76 online retailers combined for more than $116.97 billion in web sales.

Here are Salesforce’s five predictions about the 2024 holiday shopping season.

1. Chinese shopping apps will take over

The first Salesforce holiday shopping prediction revolves around two factors: prices and China. The company said 63% of Western consumers plan to purchase from Chinese shopping apps during the 2024 holiday season. That includes merchants such as Aliexpress, Cider, Shein, Temu and TikTok. And it all comes down to price, Salesforce said.

Rob Garf, vice president and general manager of retail at Salesforce, said sales increases have been “almost purely because of price increases, not increase in products sold.”

Order volumes have been falling since 2022, Salesforce said, and shoppers want their purchases to feel worth it. Salesforce projects that these Chinese shopping apps will take 21% of sales outside China itself in the 2024 holiday season.

2. Middle-mile shipping puts strain on margins

The second Salesforce prediction is that brands and retailers will spend an extra $197 billion on middle- and last-mile expenses during the 2024 holiday shopping season. That would be a 97% increase over last year’s holiday season.

The company said attacks in the Red Sea from Yemen-based Houthi forces and rising crude oil prices are driving container costs up worldwide. A Houthi spokesperson stated in December that they would target “ships affiliated to Israel or transporting commodities to Israeli ports” and continue to do so if “food and medicine keep not accessing the Gaza Strip.”

Salesforce cited a Reuters report assessing that “any ceasefire agreement would lessen the tension in the Middle East.” To date, Israel and Hamas have not agreed on terms for a ceasefire that would end the current Israeli military campaign. Israel has pushed for a six-week ceasefire, whereas Hamas has pushed for a permanent ceasefire.

Moreover, the collapse of the Francis Scott Key Bridge in Baltimore has stalled delivery times and added expenses for retailers. But despite these challenges, Salesforce said, retailers shouldn’t push shipping expenses onto consumers.

More than half of shoppers say they are more likely to purchase online than in a store if delivery is free, according to Salesforce. This is also in line with Digital Commerce 360 research.

Garf said retailers are getting more stringent about returns, as well. That has also led to retailers pushing buy online, pick up in store (BOPIS).

3. Shoppers embrace AI to search for the perfect gift

Salesforce said that artificial intelligence (AI) influenced 17% of online purchases during the 2023 holiday shopping season. Predictive and generative AI contributed to $199 million in online sales during the 2023 holiday shopping season, it said.

This year, Salesforce anticipates that more consumers will leverage AI, whether they know it or not. Already, 53% of shoppers Salesforce surveyed said they are interested in using generative AI for discovering gift ideas.

As Google embeds generative AI into its search tool, Salesforce said, retailers will be able to transition from keyword searches to natural prompts for finding products on their websites. Salesforce said it predicts search will drive a conversion rate nearly 3x better compared to traffic not engaged with site search. It also predicts a 1.8% conversion rate across all geographies and verticals in the 2024 holiday shopping season.

Salesforce announced AI, Data Cloud and Commerce Cloud features at its Connections 2024 conference at McCormick Place in Chicago on May 22 and 23.

4. Black Friday becomes Cyber Friday

Among the Salesforce predictions is that ecommerce will capture 7% of in-store sales on Black Friday.

Nearly two-thirds of shoppers Salesforce surveyed said they’re waiting until the Cyber 5 period to make large holiday purchases.

“The big news is that Black Friday is going to be the biggest day for digital,” Salesforce said.

Survey respondents cited convenience, free delivery and the ability to search for the best prices as their top reasons for going online. Additionally, 72% of surveyed consumers told Salesforce they prefer to shop online during Black Friday.

5. Retailers tap loyal shoppers to avoid skyrocketing digital marketing costs

Digital marketing costs are becoming more expensive as the United States prepares for another presidential election and Chinese companies buy more advertising inventory, Salesforce said.

“This means that brands and retailers have to better engage their existing customer base amid this tug of war over digital advertising space,” it said.

As a result, Salesforce said, shoppers are doubling down on loyalty programs. 63% of shoppers are making more purchases from stores where they can earn and redeem loyalty points, Salesforce said.

Salesforce Shopping Index data indicates that the rate of repeat buyers increased 8% over the last two years. Furthermore, 46% of shoppers say earning and redeeming loyalty points is the second-highest factor, behind price, influencing where they buy, according to Salesforce data.

The final Salesforce holiday prediction is that loyal, repeat buyers will make 40% of purchases in the 2024 holiday season.

“This season will be competitive, intense, and no doubt all about pricing and discounting strategies,” Salesforce said. “It’s never been more important to rely on your customer data for guidance and insight into marketing campaigns — especially the holiday promotional calendar — that keep your loyal customers buying more and buying from you.”

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How CBP proceeds could have implications for international retailers, including China-originated shipments ordered through Shein and Temu. The companies fell under scrutiny by the U.S. House Select Committee on the Chinese Communist Party in 2023, along with other companies.

During the investigation, the committee looked at the current de minimis environment for imports. An update in 2016 allowed that a single person on one day could import articles with a total value of up to $800 without formal customs declarations. That de minimis threshold allows shipments to avoid certain import duty and tax obligations. It was raised from a previous level of $200.

“Temu and Shein alone are likely responsible for more than 30 percent of all packages shipped to the United States daily under the de minimis provision, and likely nearly half of all de minimis shipments to the U.S. from China,” the bipartisan committee’s report claimed.

Shein is No. 2 in Digital Commerce 360’s Asia Database ranking ecommerce retailers in the region by online sales. The online apparel retailer was valued at $66 billion in May 2023 when it closed its latest funding round.

PDD Holdings owns Temu, which launched in 2022 and isn’t yet reflected in the database. PDD also owns Pinduoduo, which operates an app-only marketplace for Chinese consumers. Because it doesn’t operate an ecommerce website, Pinduoduo is not included in Digital Commerce 360’s Asia Database.

How will US Customs enforce de minimis rules for ecommerce?

U.S. de minimis imports | Image source: U.S. International Trade Commission

“While balancing our economic security and trade facilitation mission with our law enforcement responsibilities, CBP is taking action to ensure compliance and minimize the exploitation of the small package, or de minimis, environment,” said Troy Miller, acting commissioner at CBP, in a statement released May 31. “While the majority of brokers, carriers, and supply chain businesses that participate in CBP’s Entry Type 86 Test are compliant with applicable laws, we are enhancing our enforcement efforts to ensure that all participants are held accountable when they are not.”

The U.S. International Trade Commission published a briefing in November 2023. Its author concluded that most imports using the de minimis standards came from China.

“The majority of these imports, shipped by postal and express delivery services, are retail products purchased online,” the report stated. “Section 321 imports have been the key channel for Chinese business-to-consumer (B2C) online retailers that ship direct from factories or distribution centers in China to U.S. consumers.”

It also cited those imports as a source of interest in Congress.

“The large volume and fast growth of these imports from China since 2018 has led to increased Congressional scrutiny and proposed legislation to modify what some have called an outdated program not suited to the current trade environment of surging cross-border e-commerce,” the report found.

Implications for Shein and Temu

In addition, the International Trade Commission briefing stated that Chinese ecommerce firms had “exploited” the increased U.S. de minimis level and minimized inspections. It also characterized the outcome for “Chinese e-commerce providers” being increased U.S. market share.

“In particular, Shein and Temu, online Chinese fast fashion retailers, reportedly accounted for over 30 percent of U.S. de minimis imports in 2022,” the briefing stated. “Shein has maximized the direct-to-consumer business model and it eclipsed leading U.S. firms in the category in 2022, with U.S. revenues growing from under $500 million in 2018 to over $3 billion in 2022. Temu’s business model also relies heavily on U.S. de minimis treatment.”

Already, CBP has taken action against an unknown number of brokers that it found to be posing compliance risks.

“To date, CBP has suspended multiple customs brokers from participating in the Entry Type 86 Test after determining that their entries posed an unacceptable compliance risk,” Miller said.

Those brokers will be eligible for reinstatement. However, they must demonstrate to CBP that they have “developed and implemented a remedial action plan,” he explained.

Shein’s potential IPO in London

Shein reportedly filed confidentially for a public offering in the U.S. last November. However, those plans face obstacles, including regulatory scrutiny in the U.S. and in China, where it was founded. Instead, the company has since shifted talk to the U.K. for a possible London-based public offering. That filing could come any day, Sky News reported on June 3.

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For the full year, Alibaba revenue grew 8% over 2022 and operational income increased 13%. Net income increased 9%.

In a statement announcing quarterly earnings, Alibaba attributed the net income drop in the quarter to “a net loss from our investments in publicly-traded companies during the quarter, compared to a net gain in the same quarter last year.”

“Our China and international commerce businesses realized double-digit year-over-year GMV growth through our focus on the customer experience,” CEO Eddie Wu said in the statement. “We are also excited by the accelerated growth of customers and cloud computing revenues related to our AI products.”

Alibaba’s Cloud Intelligence Group grew revenue 3% year over year to about $3.55 billion. Its cloud offerings include elastic compute, database and AI products.

In a May 14 earnings call with investors, Wu said Alibaba’s “core business has gradually returned to healthy growth” after several quarters of “adjustments and continued user experience enhancement.”

Alibaba owns the world’s two largest online marketplaces by gross merchandise value (GMV), Taobao and Tmall. Taobao ranks No. 1 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the largest such marketplaces by GMV. Tmall ranks No. 2. Both operate in China.

How much did Alibaba make in 2023?

For the full 2023 fiscal year, Alibaba grew revenue to $130.35 billion. At the same time, it grew operational income to nearly $15.7 billion and net income to $11.04 billion.

In Q4, Alibaba revenue grew to about $30.73 billion. It attributed that growth to increased investments in its ecommerce business.

Alibaba International Digital Commerce Group (AIDC), the company’s ecommerce division, grew revenue 45% year over year in Q4, to $3.80 billion. The combined orders on its marketplaces grew 20% in the same period. It attributed the performance to growth in its cross-border business broadly and the AliExpress marketplace specifically.

“We are committing more resources to cross-border e-commerce because of the clear customer value proposition of price competitiveness and timely delivery to consumers around the world,” it said. “To further expand our geographic footprint and deliver differentiated services to a broader customer base, we increased investments in our cross-border initiatives this quarter.”

Wu told investors the company has “completed adjustments to Alibaba Cloud’s product strategy for the AI era.” He added that AI-related revenue more than doubled, increasing in the triple digits year over year in Q4. Wu said he believes this “wave of generative AI-driven technological innovation is in the early stages of the industry cycle.”

Starting in 2024, he said, Alibaba has seen a “rapid increase in customer demand for AI.” As a result, Alibaba is investing in its cloud-computing product matrix and — in Wu’s words — “especially in AI infrastructure.”

Withdrawn Cainiao IPO

Alibaba withdrew Cainiao’s application for an initial public offering (IPO) in March, Wu stated. Cainiao is a logistics company that Alibaba and other companies launched in May 2013.

“Cainiao provides essential infrastructure to Alibaba’s core ecommerce business,” Wu said. “And we hope Cainiao will strengthen its synergies with our Chinese domestic and international e-commerce operations. Alibaba Group will continue to support the expansion of Cainiao’s global logistics network.”

Jiang Fan, AIDC’s CEO, said Cainiao’s cross-border logistics capabilities have helped AliExpress. He said “synergies” between the two have made AliExpress more competitive, with five-day and 10-day completion rates both doubling year over year.

Here’s last quarter’s update about Alibaba revenue and earnings.

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Shopify is an ecommerce platform developer and service provider. Joyy is a video-based social media platform that trades on NASDAQ.

The suit filed in the U.S. District Court for the Southern District of New York alleges that Shopline Commerce Pte. Ltd. and Shopline US Inc. created a copycat version of Dawn, Shopify’s computer program that enables the creation of customizable storefront templates.

“Shopify merchants can use Dawn to quickly launch a compelling online presence or to design their unique store,” Shopify says in its lawsuit. “It is the product of many thousands of hours of creative effort by Shopify employees and the investment of many millions of dollars and Dawn is protected by copyrights registered in the United States.”

In North America, 117 of the Top 1000 online retailers use Shopify as their ecommerce platform. The Top 1000 is Digital Commerce 360’s database of the largest online retailers in the region by annual web sales. In 2023, those 117 online retailers combined for more than $9.72 billion in web sales.

Shopify sues Shopline

Shopify alleges that Shopline copied Dawn and is now distributing what it calls “a thinly disguised knockoff” called Seed.

“Shopline’s derivative of Dawn still carries damning evidence of Shopline’s wholesale copying,” Shopify says in its suit. “The file structure and layout, file names, function names, lines of code and even icon codes from Shopify’s original can still be found in Seed. The ‘Shopify’ name still appears in the code of various versions of Seed that Shopline is distributing. And Shopify has found a Chinese webpage hosted by Joyy bearing the title: “Seed Theme” that still carries headers reading ‘dawn-test.’”

Digital Commerce 360 reached out for comment to JOYY but has yet to receive a response.

“We’ve taken aggressive legal action against Shopline to uphold the integrity of Shopify’s products,” a Shopify spokesperson said in a statement. “We will continue to fiercely defend our intellectual property from bad faith actors.”

The Shopify lawsuit contends that Shopline violated Shopify’s copyright both in the U.S. and globally.

“To create Seed, Shopline started by making an unauthorized copy of Dawn, translated that unauthorized copy into a different programming language, and then made cosmetic changes to the Dawn code,” the lawsuit says. “From the highest level of overarching organization to the smallest level of individual lines of code, the evidence of Shopline’s copying is overwhelming. The organization of Seed’s directory layout matches Dawn’s layout, using the same names and same labels, and has identical contents for the code. That would not be if the programs were independently developed.”

In its action, Shopify is asking the court for a cease decision and unspecified statutory damages and legal fees. The district court has not scheduled preliminary dates for a hearing.

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GigaCloud launched its B2B marketplace in January 2019 by focusing on the global furniture market. It has since expanded into such additional categories as home appliances and fitness equipment. The GigaCloud B2B marketplace debuted as a public company in the U.S. in 2022. It first became profitable in 2023.

For the year ended Dec. 31, GigaCloud reported:

• Total 2023 revenue of $703.8 million, an increase of 43.6% from $490.1 million for 2022.
• 2023 net income was $94.1 million compared to $24.0 million in 2022.
• GigaCloud marketplace gross merchandise volume in 2023 totaled $794.4 million, up 53.3% from $518.2 million in the prior year.
• Active third-party (3P) sellers totaled 815 last year, an increase of 45.5% from 560 in 2022.
• The number of active buyers grew year over year to 5,010, up 20% from 4,156 in 2022.
• The spending per active buyer was $158,569 compared to $124,692 in 2022.
• Third-party marketplace gross merchandise value (GMV) was $426.3 up 65.4% from $257.7 million in the prior year.

“On the seller side, the platform saw an approximately 46% increase in active 3P sellers, which ended at 815 for the quarter,” CEO Larry Wu told analysts on a recent year-end earnings call. “As I’ve mentioned in the past, we see the expansion of our 3P ecosystems as a crucial aspect of our platform expansion and achieving scale in our supplier-fulfilled retailing model,” he added.

GigaCloud’s expansion plans

In February, the marketplace also announced more international expansion with the introduction of new third-party suppliers in Colombia, Mexico and Turkey that have joined its B2B ecommerce platform, GigaCloud Marketplace.

As GigaCloud broadens its reach, Wu points to challenges stemming from “shifts in the evolving global supply chain” a motivator for resellers to become buyers on its marketplace, which he says is adapting to supply chain conditions, listing products from various regions.

“This strategic move positions GigaCloud as a key player in global trade, offering diverse supply chain solutions that empower resellers to source products globally, supported by comprehensive logistics and fulfillment services to optimize their procurement efficiency and overall supply chain performance — all at their fingertips,” Wu stated.

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YouGov is an international online research data and analytics technology group. It polled 700 adults in the United States ranging from ages 18 to 65 on March 27 and 28.

How well-known is Temu?

YouGov data shows that 88% of Americans it polled have heard of Temu. Moreover, 95% of women who responded said they had heard of Temu. That compares with just 80% of men who had heard of it.

More than half the respondents (52%) said they heard of Temu because of ads for the online marketplace. Of those who had heard of it, 77% said they had seen a Temu ad in the prior three months.

Despite the brand awareness, YouGov data showed that more than half of those polled (56%) have never made a purchase from Temu. Among those who have purchased from Temu, nearly a quarter (24%) said they would buy from the online marketplace again. That compares with 15% who said they are unlikely to buy from its site again.

Those results varied by age, too. Those age 18 to 29 were most likely to buy from Temu again (34%). Those 30 to 44 were the most unlikely to purchase from the online marketplace’s site again (22%). Those age 45 to 64 were the most likely to have never made a purchase from Temu.

Temu spends on brand awareness

For Super Bowl LVIII in 2024, Temu bought three advertising spots during the game and two after it. Each 30-second commercial ran advertisers an estimated $6.5 million to $7 million. Individual rates vary, however, depending on when an ad airs during the game and if an individual advertiser purchases multiple commercial spots. A Temu spokesperson declined to comment on how much the retailer spent.

During the 2023 Super Bowl, Temu ran two 30-second spots.

“Through the largest stage possible, we want to share with our consumers that they can shop with a sense of freedom because of the price we offer,” PDD said in a statement at the time.

PDD Holdings owns Temu, which launched in 2022 and isn’t yet reflected in Digital Commerce 360 rankings of the largest online retailers. PDD also owns Pinduoduo, which operates an app-only marketplace for Chinese consumers. Because it doesn’t operate an ecommerce website, Pinduoduo is not included in Digital Commerce 360’s Asia Database.

Editor’s note: This article has been updated to reflect Temu’s ownership. PDD Holdings owns Temu, as well as its sister company Pinduoduo.

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The reason is limited access to computer chips based on government restrictions, Tsai says in a new podcast interview with Nicolai Tangen, chief executive of Norway’s Norges Bank Investment Management unit, which invested $4 billion over time in Alibaba.

China is “probably two years behind the top [large language] models,” with the U.S.’s curbs on exporting high-end chips to China part of the reason the country is behind in the AI space, based on a synopsis of the podcast on Yahoo Finance. But Alibaba has “made some efforts” in manufacturing high-end graphics processing units (GPUs). It also sources chips from other players, without giving further details, according to the transcript.

Alibaba owns the world’s two largest online marketplaces by gross merchandise value (GMV), Taobao and Tmall. Taobao ranks No. 1 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the largest such marketplaces by GMV. Tmall ranks No. 2. Both operate in China.

AI and Alibaba investments

Alibaba Group has been investing in a better customer experience. In doing so, its goal has been to drive sales across its international retail and B2B ecommerce sites. That strategy produced a 44% year-over-year rise to $4.02 billion in its international division’s sales for its fiscal third quarter ended Dec.31.

But those investments led to a 388% drop in earnings before taxes and amortization costs to a net EBITA loss of $433 million for the Alibaba International Digital Commerce group, Alibaba said. They also contributed to Alibaba Group’s 77% drop in Q3 net income to $1.51 billion.

But now, Alibaba is looking to deliver better results, according to the podcast. A big emphasis is on growing its business in the U.S.

“Speaking of U.S.-China specifically, if you look at Alibaba, we do so much business on behalf of U.S. companies,” he said in a transcript on BusinessToday.com. “We sold over $60 billion of American products to Chinese consumers annually. “

But doing business online in the U.S. is not without challenges.

“Just generally being a Chinese company in the U.S., we must be very careful,” he said. “For example, we do not have much of a consumer-facing business in the United States and that is because [there are] concerns about data privacy, cyber security and things like that. These are some of the issues that we will have to navigate in the future.”

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In a recent earnings call with investors, chief financial officer Matthew Friend said Nike’s target for the past year has been “to achieve the 40% digital metric.” So far, the company has not disclosed how far along it is toward hitting that share of sales through digital channels.

“We continue to see a heavy level of promotional activity happening across digital, across all of our geographies,” Friend said.

In Q3 of fiscal 2024, consolidated Nike revenue grew to $12.43 billion from $12.39 billion in the year-ago period. Among that, Nike Direct accounted for $5.4 billion. Nike Direct refers to the retailer’s direct-to-consumer sales, both in physical stores and online. Meanwhile, Nike wholesale revenue grew 3% to $6.6 billion.

Nike ranks No. 8 in the Top 1000, Digital Commerce 360’s database of the largest North American e-retailers by online sales. It’s also the highest-ranking Apparel/Accessories retailer in the Top 1000.

CEO John Donahoe said in the earnings call that “Nike is not performing in our potential.” To address that, he said Nike must lean into its wholesale business “to elevate our brand and grow the total marketplace.”

Nike Digital sales see bright spot in North America

Nike Digital, encompassing global sales through the retailer’s website and mobile app, decreased 4% in Q3. The Nike brand, specifically, decreased digital sales 3%.

In North America, Nike Digital sales increased 1% year over year. However, that was the only regional digital sales growth. In Europe, the Middle East and Africa (EMEA), Nike Digital sales declined 10%. They also fell 13% in what Nike refers to as the Greater China region, and 6% in Asia-Pacific and Latin America.

Donahoe said Nike’s physical retail sales in China outperformed digital sales.

“And then within digital, Tmall, which was historically the biggest digital driver, is experiencing less growth,” Donahoe said. “We’re still the number one sports brand on Tmall.”

He added that Nike is also expanding its “growth into social commerce, which is the growing digital channel in China.” Specifically, Nike is planning to facilitate sales through short-form video platform Douyin that ByteDance launched in China in 2016. ByteDance also owns social media platform TikTok.

Tmall is an Alibaba-owned marketplace, along with Taobao. Taobao ranks No. 1 in the Global Online Marketplaces Database, Digital Commerce 360’s ranking of the largest such marketplaces by gross merchandise value. Tmall ranks No. 2.

Nike Direct sales grow overall

Despite the 4% drop in Nike Digital sales, the retailer’s overall direct-to-consumer sales still grew “slightly” year over year, Friend said. Nike did not quantify its growth in DTC sales.

Donahoe said Nike Direct “will continue to play a critical role” as the retailer makes adjustments to its sales strategy.

Nike earnings

For the fiscal third quarter ended Feb. 29, 2024, Nike reported:

• Revenue grew to $12.43 billion from $12.39 billion the prior year.
• Nike Digital sales decreased 4% year over year.
• Direct-to-consumer revenue was $5.4 billion.
• Wholesale revenue was $6.6 billion, up 3% year over year.

For the nine months ended Feb. 29, 2024, Nike reported:

• Revenue grew to $38.76 billion from $38.39 billion in the prior-year period.
• Nike-brand revenue was up 2% to $11.9 billion.

Percentage changes may not align exactly with dollar figures due to rounding. Check back for more earnings reports. Here’s last quarter’s Nike report.

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The new statement, which JD.com released March 15 via the London Stock Exchange, fulfills JD.com’s requirement to announce firm intentions by the filing deadline, which was set to March 15.

In the statement, JD.com cited United Kingdom code on takeovers and mergers. JD.com said that Rule 2.8 of the code applies to its statement. It said it reserves “the right to make or participate in an offer for Currys … within the next six months following the date of this announcement.”

Based on Rule 2.8, JD.com has six months to make or participate in an offer:

• With the agreement of Currys’ board
• Following a third party’s announcement of a firm intention to make an offer for Currys
• Following an announcement from Currys of a waiver proposal or reverse takeover
• If the takeover panel determines there has been “a material change of circumstances”

JD.com’s previous interest in a Currys offer

In February, JD.com had said it was “in the very preliminary stages of evaluating a possible transaction that may include a cash offer for the entire issued share capital of Currys.”

That came around the time that private equity investor group Elliott Management had announced its intention to acquire Currys. However, Currys had rejected that offer.

“The board confirms that it received an unsolicited, preliminary and conditional proposal from Elliott regarding a possible cash offer for the entire issued and to be issued share capital of the Company,” Currys said in a Feb. 19 statement.

JD.com Inc. is No. 1 in the Asia Database, Digital Commerce 360’s ranking of the region’s largest online retailers. It is also No. 4 in the Global Online Marketplaces Database.

Currys is No. 23 in the Europe Database, Digital Commerce 360’s ranking of the largest online retailers in the region. It sells refrigerators, washing machines, computers and other electrical goods. Currys operates 301 stores in the United Kingdom and 426 stores across Scandinavia through its Elkjop brand.

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