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NIKE, Inc. Reports Fiscal 2017 4th Q and Full Year Results | Beneath the Surface

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Source: NIKE, Inc. Reports Fiscal 2017 Fourth Quarter and Full Year Results

Even with the amazing growth of adidas this past year Nike hasn’t slowed down… well they have slowed down in North America, but Nike’s international sales picked up the slack and my long time discussion point DTC saw more growth basically doubling from two years ago.

There were some important takeaways from the conference call, which I missed, but were shared by a variety of writers on Twitter today by Sara, Germano, Elaine Low, and Matt Townsend:

Nike dot com and apps now represent $2B in revenue, doubling over past two years, CEO says.

Nike CEO says the Amazon distribution will include footwear, apparel and accessories.

asked if Jordan brand () will be sold on …execs dodge question…

“With in the U.S., we’re running a pilot that begins w/ a small product assortment across footwear apparel and accessories” CEO

Nike makes twice the revenue when products are processed thru , said CFO Andy Campion

brand pres Trevor Edwards: new partnership w/ Instagram to allow users to buy thru the app. Part of “consumer-direct offense” strategy

What is painfully apparent here for me is that the days of reselling are becoming numbered when it comes to third party platforms like Amazon. I have to assume eBay will follow suit if Nike begins brand gating on Amazon which has already started.

There is a portion of Nike’s success that isn’t being discussed however and I think it’s critical. What does Nike’s growing DTC via their 1000 plus Nike store locations, NDC and the impending Amazon deal mean for companies like Finish Line, Hibbett Sports and City Gear?

Once the Amazon brand registry begins there will be a noticeable drop off in ecommerce for Nike wholesale accounts. This is where the real story is.

To read more about Nike’s better than expected Q4 use the source link.