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Nike confirms partnership with Amazon

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Last week, Goldman Sachs gave an alert that Nike and Amazon were under negotiations to strike a deal. Presently, Nike CEO, Mark Parker ascertained that Amazon is evaluating their collaboration; he disclosed this in a call with investors.
According to Parker, this is just the beginning, and there’s hope that the pilot’s results will be evaluated. Currently, some of Nike’s products are available on Amazon through licensed third-party sellers and unlicensed ones.

The effect of Nike’s direct partnership with Amazon

A direct collaboration would enable Nike to step up its brand presentation by having control over the means of marketing their products on Amazon. Parker stated that the shop would display only limited varieties of their goods at the initial time.

He added that Nike would move its business forward in the year, as the proposed partnership with Amazon is in a bid to renovate its sales methodology as retail remains in hardship. Good retail stores may not sit well with the news – stores like Hibbett Sports (HIBB) and Dick’s Sporting Goods (DKS).

Lately, Nike has been through a lot. The company stated that it had to let go over 1,000 workers in a bid to balance the company’s revenue. Following a better report about the company’s revenue going up 5% last quarter with a significant $8.7 billion increase, Investors felt better.

Few hours of trading got Nike’s stock up to 4%. Adidas, Nike’s rival already has a landing page on Amazon, as it has a partnership with Amazon, but Adidas is yet to confirm to CNNMoney if there’s any existing partnership with Amazon.