Direct-to-consumer growth since 2010

According to the most recent quarterly numbers, Nike's direct-to-consumer business made $3.7 billion, up 12% year-on-year, thanks to a 82% rise in online sales. This was all revenue that used to go via third-party retailers like Zappos, Dillard's, Belk, Boscov, Bob's Stores, Fred Meyer, EBLens, VIM, and City Blue, of which Nike no longer does business.

On the 27th of September 2018 I wrote "The company (Nike) is now gearing itself to sell more products through their own online channels which in the long-term will help improve margins, but this comes at a high short-term cost of setting up the distribution channel." Well in hindsight, the focus on vertical retail and distribution has paid off for Nike.

Right now, Nike looks more like a luxury brand than an athleisure business. They have an iconic founder, a strong brand, timeless designs and artisanship, and vertical distribution. Nike looks more like a Bottega Veneta than a Puma or Adidas, something Lululemon figured out very early. The infographic below shows Nike's growth in the Direct-to-consumer sales over the years.

You will find more infographics at Statista