One of the impressive things about the performance of Nike (NYSE: NKE) in the third quarter of 2019 was the acceleration in footwear sales compared with the year-ago quarter. It's not easy for a company of Nike's size -- one that does $24 billion in footwear sales in a year -- to accelerate Adidas Superstar Donne sales growth from 2% in the year-ago quarter to 13% in the last quarter (excluding currency changes).
During the fiscal third-quarter conference call, management credited the company's improved growth not only to innovation but also to investments in digital sales channels, including technology Adidas EQT Support ADV Mujer that is improving the company's efficiency throughout the supply chain. Management sees the digital business, which grew sales 36% year over year last quarter, emerging as one of Nike's competitive advantages.
Nike's digital strategy is more than just throwing up a website Nike Air Force 1 Damen or rolling out an app where you can shop for Nike shoes at your leisure. The company is making its digital shopping experience a lifestyle all its own.
For example, it has been investing in its NikePlus membership program to create more personalized connections with Nike Roshe Run Donnecustomers. For instance, data analytics are being used to drive advanced algorithms to better reward active members and utilize demand-sensing technology, which helps keep product in supply. CEO Mark Parker said in prepared remarks, "When we offer more tailored product and experiences, we bring more Nike Air Max 2017 Dames value to the consumer and it opens up more opportunities to grow our business."
CFO Andy Campion elaborated on the broader thinking of Nike's digital ambitions: "Our vision is to create direct, unbreakable relationships with our consumers. And we know the most direct connection is through the mobile device they carry with them everywhere they go." Management's push for this "unbreakable" customer relationship is evident in its SNKRS app, which allows customers to read about upcoming Adidas Ultra Boost Donne releases, track their favorite styles, and store payment information to make checkout easier.
Rolled out in 2015,Nike Air Huarache Femme the SNKRS app is a valuable marketing tool for the Nike brand, as it sends customers an alert when a shoe is about to launch. Shoes routinely sell out, which encourages a must-have-now mind-set among users. Last quarter, both traffic Nike Air Max 1 Femme and revenue in the SNKRS app increased by triple digits.
Supporting this level Nike Air Max 2016 Femme of personalization and the demand it creates requires significant investments on the back end of the business. In line Adidas NMD Femme with Nike's supply chain improvements over the last few years, the company continues to fine-tune its operations, including digital tagging and tracking of products using radio-frequency identification (RFID), which allows Nike to track products through the production process until the item is sold to the customer.
Ultimately, RFID will help Nike better match supply to demand. This, in turn, will help Nike avoid having to mark down unsold merchandise. It will Nike Air Max 90 Donne Nero achieve sell-through of more items at full price, which should contribute to higher margins.