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NIKE (NKE) Strengthens Its Digital Game With Datalogue Buyout
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Given the recent scenario, wherein the pandemic led shift to online platform is here to stay, NIKE, Inc. (NKE - Free Report) is leaving no stone unturned to ensure sustained online sales momentum. In doing so, the company has acquired the data-integration platform Datalogue. Founded in 2016, Datalogue is a startup based in New York, which uses machine-learning technology for data preparation and integration. Notably, the terms and conditions of the deal remained undisclosed.
This move is likely to help NIKE to transform raw data from all sources in a faster and easier way. Further, the buyout is seen as part of its consumer-led digital transformation plan, wherein NIKE plans to increase investments in e-commerce and technology along with optimize the men’s, women’s and kids’ businesses. Also, industry experts believe that the company is taking a more direct selling route in a bid to enhance connectivity with consumers.
NIKE has already been doing good on the digital front, driven by its efficient digital ecosystem that comprises its online site as well as commercial and activity apps. Also, consumers’ increasing preference for digital, athletic wear, and health and wellness bode well.
In the fiscal second quarter, digital sales for the NIKE Brand were up 84% on a reported basis and 80% on a currency-neutral basis. Double-digit growth across EMEA, Greater China and APLA along with triple-digit growth in North America aided results. Moreover, NIKE Direct sales increased 32% on a reported basis and 30% on a currency-neutral basis, driven by double-digit growth in JD Sports and Zalando.
Additionally, management noted that it continues to witness strong digital trends, even as stores reopened. As a result, NIKE remains focused on digital acceleration, which is now thought of as the new future of the marketplace rather than being a temporary solution to the coronavirus-related challenges in physical markets.
Other retailers benefiting from the online boom are Skechers (SKX - Free Report) , V.F. Corp (VFC - Free Report) and Columbia Sportswear (COLM - Free Report) . Notably, Skechers’ online sales advanced 142.7% year over year in fourth-quarter 2020. Moreover, Columbia Sportswear witnessed e-commerce sales growth of 41% year over year in fourth-quarter 2020. Also, V.F. Corp’s global digital revenues advanced 53% in third-quarter fiscal 2021.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Image: Shutterstock
NIKE (NKE) Strengthens Its Digital Game With Datalogue Buyout
Given the recent scenario, wherein the pandemic led shift to online platform is here to stay, NIKE, Inc. (NKE - Free Report) is leaving no stone unturned to ensure sustained online sales momentum. In doing so, the company has acquired the data-integration platform Datalogue. Founded in 2016, Datalogue is a startup based in New York, which uses machine-learning technology for data preparation and integration. Notably, the terms and conditions of the deal remained undisclosed.
This move is likely to help NIKE to transform raw data from all sources in a faster and easier way. Further, the buyout is seen as part of its consumer-led digital transformation plan, wherein NIKE plans to increase investments in e-commerce and technology along with optimize the men’s, women’s and kids’ businesses. Also, industry experts believe that the company is taking a more direct selling route in a bid to enhance connectivity with consumers.
NIKE has already been doing good on the digital front, driven by its efficient digital ecosystem that comprises its online site as well as commercial and activity apps. Also, consumers’ increasing preference for digital, athletic wear, and health and wellness bode well.
In the fiscal second quarter, digital sales for the NIKE Brand were up 84% on a reported basis and 80% on a currency-neutral basis. Double-digit growth across EMEA, Greater China and APLA along with triple-digit growth in North America aided results. Moreover, NIKE Direct sales increased 32% on a reported basis and 30% on a currency-neutral basis, driven by double-digit growth in JD Sports and Zalando.
Additionally, management noted that it continues to witness strong digital trends, even as stores reopened. As a result, NIKE remains focused on digital acceleration, which is now thought of as the new future of the marketplace rather than being a temporary solution to the coronavirus-related challenges in physical markets.
Shares of this Zacks Rank #3 (Hold) stock gained 41.8% in a year’s time compared with the industry’s growth of 39.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Other retailers benefiting from the online boom are Skechers (SKX - Free Report) , V.F. Corp (VFC - Free Report) and Columbia Sportswear (COLM - Free Report) . Notably, Skechers’ online sales advanced 142.7% year over year in fourth-quarter 2020. Moreover, Columbia Sportswear witnessed e-commerce sales growth of 41% year over year in fourth-quarter 2020. Also, V.F. Corp’s global digital revenues advanced 53% in third-quarter fiscal 2021.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 77 billion devices by 2025, creating a $1.3 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 4 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2022.
Click here for the 4 trades >>