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Nov. 13, 2019, 9:58 a.m. EST

Nike Curtails Dealings with Amazon

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Nov 13, 2019 (Baystreet.ca via COMTEX) -- Nike /zigman2/quotes/203439053/composite NKE +0.11% will stop selling merchandise directly to Amazon /zigman2/quotes/210331248/composite AMZN -1.95% , as part of its push to sell more directly to consumers.

The abrupt halt ends a pilot test that Nike and Amazon launched together back in 2017. At the time, Nike agreed to sell a limited product assortment to Amazon, in exchange for stricter policing of counterfeits and restrictions on unsanctioned sales of its products. That included Nike's athletic footwear, apparel and accessories.

Before 2017, Nike had resisted such a deal with Amazon, focusing its attention on its own online marketplace and stores. The fear for many brands has always been that, by partnering with Amazon, a company loses control over how its brand is represented on the site.

One Nike spokesperson told the media, "As part of Nike's focus on elevating consumer experiences through more direct, personal relationships, we have made the decision to complete our current pilot with Amazon Retail."

Nike now says it brings in about 30% of annual sales from its direct-to-consumer business. Some of its biggest wholesale partners include Foot Locker /zigman2/quotes/204092533/composite FL -1.29% , Dick's Sporting Goods /zigman2/quotes/200566298/composite DKS -0.08% and Nordstrom /zigman2/quotes/203902116/composite JWN -2.08% . And while it still invests in those relationships, it's been investing more of late in building out flagship Nike stores and upgrading its own apps and website.

Shares in the "Just-do'it" company gained $1.06, or 1.2%, to $90.54, while those for Amazon dumped $8.90 to $1,769.10

COMTEX_356851618/2559/2019-11-13T09:58:28

/zigman2/quotes/203439053/composite
US : U.S.: NYSE
$ 96.57
+0.11 +0.11%
Volume: 2.33M
July 14, 2020 1:45p
P/E Ratio
60.93
Dividend Yield
1.02%
Market Cap
$150.00 billion
Rev. per Employee
$529,466
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/zigman2/quotes/210331248/composite
US : U.S.: Nasdaq
$ 3,043.41
-60.59 -1.95%
Volume: 5.10M
July 14, 2020 1:46p
P/E Ratio
144.77
Dividend Yield
N/A
Market Cap
$1548.20 billion
Rev. per Employee
$359,671
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/zigman2/quotes/204092533/composite
US : U.S.: NYSE
$ 27.63
-0.36 -1.29%
Volume: 1.76M
July 14, 2020 1:45p
P/E Ratio
13.79
Dividend Yield
0.00%
Market Cap
$2.92 billion
Rev. per Employee
$161,332
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/zigman2/quotes/200566298/composite
US : U.S.: NYSE
$ 38.72
-0.03 -0.08%
Volume: 1.06M
July 14, 2020 1:46p
P/E Ratio
37.64
Dividend Yield
3.24%
Market Cap
$3.47 billion
Rev. per Employee
$186,650
loading...
/zigman2/quotes/203902116/composite
US : U.S.: NYSE
$ 15.03
-0.32 -2.08%
Volume: 3.60M
July 14, 2020 1:46p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$2.41 billion
Rev. per Employee
$214,324
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