Shares of Nike (NKE -0.21%) have rebounded since the lows in March, currently up 5% year to date. At one point, the stock had lost more than a third of its value, but the reopening of stores and optimism about a comeback next year has investors feeling much better about Nike's business.
While near-term pressures on the consumer will likely weigh on revenue growth, Nike is centering its business around digital channels to position for growth beyond the crisis.
Digital sales are exploding
Nike gained 25 million new members through its suite of apps and Nike.com during the last quarter. Half of those members came through Nike's activity apps, such as Nike Training Club and Nike Running Club.
Nike's investment in these apps and its membership program has been about building a closer connection with the consumer, which paid off with e-commerce sales accelerating to 75% growth year over year in the fiscal fourth quarter.
"Consumers want modern, seamless experiences, online-to-offline, so we're accelerating our approach," CEO John Donahoe said during the fiscal fourth quarter conference call.
After robust digital sales growth, which now comprises nearly a third of Nike's business, management sees owned and partner digital sales reaching half of total revenue in the foreseeable future.