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Nike to sell shoes on Amazon

Friday, June 30, 2017 - 01:02

Nike's new partnership with Amazon will allow the footwear maker to sell a limited assortment of its products on Amazon's website. Fred Katayama reports.

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Investors excited about Nike's new partnership with Amazon, driving its shares higher at the market open Friday. Nike said Thursday it's launching a pilot program to directly sell a limited assortment of its shoes and other products on Amazon's website. The world's largest footwear maker decided to take that route instead of selling through third-party and unlicensed dealers. Goldman Sachs says that could beef up Nike's revenue by up to $500 million. That's about one percent of global sales. Facing intense competition at home, Nike earlier this month embarked on a restructuring program that cuts 2 percent of its workforce and kills a quarter of its shoe styles. Nike also reported rising revenue and profit, both of which beat Wall Street's estimates. But Cowen analyst John Kernan said, "We continue to prefer 'outperform'-rated Adidas over Nike .. with higher growth and margin expansion prospects through 2020." Nike shares have risen just 4 percent this year, vastly underperforming Adidas' 12 percent gain.

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Nike to sell shoes on Amazon

Friday, June 30, 2017 - 01:02