Nike posts another strong quarter thanks to digital strategy
The strong first quarter of fiscal 2020 is a sign that the "Consumer Direct Offense" strategy Nike announced in June 2017 is generating returns for the company. The company said gross margins grew to 45.7% in the quarter thanks to more profitability for Nike Direct, its direct-to-consumer business. In 2017, as part of the Consumer Direct Offense, Nike announced the "edit to amplify" strategy to pare down its offerings and focus on better-selling styles that drive higher returns. Further indicating the success of the Consumer Direct strategy, Nike's digital business grew 42% in the quarter, led by mobile and app experiences, Nike CEO Mark Parker said on a call with analysts Tuesday. The majority of this is a result of investments in Nike Direct and global operations.