Nike Was a Standout Theme in Retail Earnings This Week

Earnings for the fourth quarter are in full swing — and one brand name has been dominating the results thus far: Nike. Executives from Foot Locker, Hibbett Sports, Dick’s Sporting Goods and Genesco have all spent time in their calls with investors discussing the Swoosh’s impact on their businesses. In some cases, retailers touted a strong and mutually beneficial relationship with Nike. In others, the opposite was the case. Nike is widely considered an essential brand for a retailer’s assortment. However, the Swoosh has recently gone all-in on an aggressive DTC strategy that has led it to terminate wholesale accounts with retailers like Zappos, Dillard’s, DSW, Urban Outfitters, Shoe Show and more. Nike has also cut back on the amount of product it is offering in existing vendors in order to consolidate distribution. The latter scenario was was the situation described in the most recent earnings report for Foot Locker. In late February, the footwear retailer posted a bleak outlook for 2022, largely due to the impact of one of Nike making an “accelerated strategic shift to DTC.” Foot Locker said as a result, no single vendor will represent more than 55% of total supplier spend, down from 65% last year. The company also posted

Follow Footwear News on Twitter or become a fan on Facebook.

from Footwear NewsFootwear News https://ift.tt/nAU2Q3f