Nike to End Amazon Partnership
Nike's (NYSE: NKE) marriage to Amazon.com (NASDAQ: AMZN) just wasn't made to last.
The sneaker and clothing titan is ending the pilot test it began with the e-commerce giant in 2017. Back then, Nike wanted Amazon to do a better job of removing counterfeits and halting unlicensed sales of its products on its website. In return, Nike agreed to sell a limited assortment of its apparel on Amazon.com.
Now Nike wants to focus more on its direct-to-consumer (DTC) efforts, which include its Nike.com website. The company's Nike Direct segment is one of the fastest-growing parts of its business. In fiscal 2019, Nike Direct revenue jumped 16% on a currency-neutral basis, to $11.8 billion, driven by a 35% surge in e-commerce sales. By comparison, Nike's wholesale business -- which includes sales to retailers such as Dick's Sporting Goods and Foot Locker -- saw revenue rise 10% on a currency-neutral basis.
Source Fool.com
