Nike (NKE) Runs Back to Amazon after Six-Year Break

Sportswear giant Nike (NKE) is returning to Amazon (AMZN) after a six-year absence, signaling a major shift in its sales strategy, the Information reported. This decision comes as market competition heats up, pushing NKE to re-enter AMZN to regain lost market share and expand its reach.

Nike stopped selling on Amazon in 2019 to focus on direct sales through its website and stores. The company wanted more control over its brand and to keep third-party sellers from offering fake products. But lately, newer brands have grown fast, pushing Nike to change its plan.

As a result, Nike will sell its products directly on Amazon, instead of using outside sellers. Under the deal, Amazon will restrict third-party sellers from offering some Nike products, ensuring a more reliable shopping experience.

Nike’s Efforts to Bolster Bottom Line

The move is part of Nike’s broader marketplace expansion, which includes new retail partnerships and digital growth. It must be noted that Nike is partnering with Printemps in France to reach more customers.

Also, the company is investing in AI to personalize shopping and sell directly to consumers. At the same time, Nike is expanding in Asia, targeting China and India for long-term growth.

Alongside its return to Amazon, Nike is raising prices on select products. Adult apparel and equipment will see increases of $2 to $10, while shoes priced between $100 and $150 will go up by $5. Also, footwear over $150 will rise by $10.

Overall, these moves reflect Nike’s efforts to stay ahead of the competition, reach new customers, and boost profits.

Is Nike Stock a Buy or Sell?

Turning to Wall Street, NKE stock has a Moderate Buy consensus rating based on 14 Buys and 15 Holds assigned in the last three months. At $77.17, the average Nike stock price target implies a 28.66% upside potential.

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