NKE Nike Inc

By Josh Beckerman 

Nike Inc., which has struggled with logistics issues recently, said it has formed a supply-chain partnership with private-equity firm Apollo Global Management LLC.

Under the alliance, a new apparel supply chain company has purchased existing Nike apparel suppliers in North and Central America and will buy more to "create a more vertically integrated apparel ecosystem." The new business has purchased apparel maker New Holland as well as embellishment, warehousing and logistics business ArtFX.

Financial terms weren't disclosed, but Nike said it hasn't made a capital investment in the entity.

According to a timeline posted on New Holland's website, the Pennsylvania company had more than 9,000 employees as of 2014. It has factories in Honduras and Nicaragua and ended U.S. production in 2001.

Nike's logistics issues have included complaints by some retailers of product delays in 2015. Nike opened a 2.8-million-square-foot distribution center in Memphis in June 2015.

The company's other recent supply-chain-focused moves have included a partnership with Flextronics International Ltd. on areas like automation and customization. In May, Nike expanded its European Logistics Campus in Belgium to "accelerate the company's drive toward the supply chain of the future."

Nike said in June that revenue rose 6% to $8.24 billion for the quarter ended May 31, while analysts polled by Thomson Reuters expected $8.28 billion. Sales were flat in North America, as the company continued to clear excess inventory and battled increased competition from Under Armour Inc. and Adidas AG.

Shares of Nike, down 8.5% this year, closed up 35 cents to $57.21 on Thursday. Shares rose another 14 cents after hours.

Write to Josh Beckerman at josh.beckerman@wsj.com

(END) Dow Jones Newswires

August 18, 2016 19:59 ET (23:59 GMT)

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