Nike Confirms Partnership With Amazon -- Update
June 29 2017 - 6:36PM
Dow Jones News
By Sara Germano
Nike Inc.'s chief executive said the company is starting a pilot
program to sell sneakers through Amazon.com Inc., ending a long
stalemate between the sportswear giant and the online retailer.
In a call with analysts Thursday, Nike CEO Mark Parker said that
Amazon would carry "a limited Nike product assortment" of footwear,
apparel, and accessories, and that Nike was seeking to improve its
presence on the e-commerce site.
"We're in the early stages, but we really look forward to
evaluating the results of the pilot," Mr. Parker said.
The Wall Street Journal previously reported that Nike and Amazon
had struck a deal to sell some swoosh products, as both companies
seek to combat counterfeiters and Nike aims to gain control over
unsanctioned third-party sales. Though Nike didn't sell direct to
Amazon, it was the most-purchased apparel brand on the site,
according to a recent Morgan Stanley survey.
Nike's partnership with Amazon follows nearly a decade of
meetings between the two companies and long-running resistance by
Nike to Amazon's pitches. A contracting sportswear retail industry
coupled with an expanding marketplace for Amazon's third-party
sellers helped spur the agreement, according to people familiar
with the matter.
Nike said its revenue in the fiscal fourth quarter rose 5% to
$8.7 billion, largely driven by gains in China and emerging
markets. Sales in North America -- Nike's largest market -- totaled
$3.76 billion in the quarter, but that fell short of the $3.8
billion expected from analysts surveyed by FactSet.
Shares, up 4.6% so far this year, rose 4.8% to $55.70 in
after-hours trading.
Overall, Nike's quarterly profit rose to $1.01 billion, or 60
cents a share, from $846 million, or 49 cents a share, a year
earlier. Gross margin narrowed to 44.1% from 45.9% a year
earlier.
--Maria Armental contributed to this article
Write to Sara Germano at sara.germano@wsj.com
(END) Dow Jones Newswires
June 29, 2017 18:21 ET (22:21 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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