Nike Inc topped analysts’ quarterly revenue and profit estimates on Thursday and posted its first sales rise in a year in North America as the world’s largest footwear maker benefited from a flurry of launches.
Shares of sports retailers soared on better-than-expected earnings from Foot Locker Inc, Shoe Carnival Inc and Hibbett Sports Inc as the companies sold more premium shoes and cut stocks of low-margin ones.
Shares of sporting goods retailers were pummelled in early trading on Friday as dismal quarterly results from Hibbett and Foot Locker heightened concerns about a supply glut intensifying price wars in the industry.
Nike's pilot programme to sell certain products on Amazon and Instagram is a precursor to it forging a deeper relationship with online retailers, and could hit sales at sporting goods retailers such as Foot Locker Inc .
In an oversight of retail planning, Under Armour's Kohl's deal is effectively causing product to be sold cheaper at Kohl's compared to other retailers, and is also not helping to improve UA's image as a lifestyle brand.