Nike Inc (NYSE:NKE) finally decided to sell trainers through Amazon.com, Inc. (NASDAQ:AMZN) after lengthy talks
According to latest publications, Sports Apparel giant Nike Inc’s (NYSE:NKE) chief executive confirmed that the firm is set to sell sneakers through Amazon.com, Inc.(NASDAQ:AMZN) finishing a long deadlock between the sportswear giant and the e-retailer.
On Thursday Nike Inc(NYSE:NKE) CEO Mark Parker said in a statement that Amazon.com, Inc.(NASDAQ:AMZN) would bring “a limited Nike product assortment” of footwear, apparel, and accessories, and that Nike was looking to perk up its existence 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.
In the recent past it was reported that Nike and Amazon.com, Inc.(NASDAQ:AMZN) had agreement in place to sell some swoosh products, as both firms seek to fight fakes and Nike aims to take control over unofficial third-party sales. Despite the fact that Nike didn’t sell direct to Amazon, according to surveys it was the most sold attire brand on the site.
Meanwhile Nike’s joint venture with Amazon follows long running meetings between the two giants and long-running confrontation by Nike to Amazon’s pitches. A constricting sportswear retail industry joined with an intensifying marketplace for Amazon’s third-party sellers helped prompt the agreement.
In addition Nike said its revenue in the fiscal fourth quarter surged 5% to $8.7 billion, largely due to gains in China and emerging markets. Sales in North America, Nike’s largest market totaled $3.76 billion in the quarter, which was less than $3.8 billion predicted from analysts.
Nike’s stock jumped 4.6% so far this year, went up 4.8% to $55.70 in after-hours trading last night.
On the whole, Nike Inc(NYSE:NKE) quarterly profit rose to $1.01 billion, or 60 cents a share, from $846 million, or 49 cents a share, year over year. Gross margin lessen to 44.1% from 45.9% year over year.