Courtesy of Benzinga.
Sports retailers were moving Wednesday morning following channel checks from Goldman Sachs analyst Lindsay Drucker Mann that suggest Nike Inc (NYSE: NKE) could begin selling directly through Amazon.com, Inc. (NASDAQ: AMZN).
NPD Group analyst Matt Powell also tweeted about the potential move.
What Nike Could Win
The athletic apparel giant already has a presence on Amazon-subsidiary Zappos, but sells only through unlicensed, third-party resellers on Amazon itself.
Nike could see a 100 basis points rise in global sales by selling direct on Amazon, according to Mann, amounting to $0.6-1 billion in retail sales.
This growth would be driven by increased control over how it appears on the site, citing Under Armour Inc (NYSE: UAA)’s business on Amazon as a baseline.
Under Armour already sells directly under it’s own, customized page on Amazon. It also has licensed third-party sellers on Amazon Marketplace. This setup allows Under Armour’s newest styles to appear sooner than Nike’s and encourages more customer reviews.
A cleaner, less fragmented landing page for consumers on Amazon would also appeal to millennials who prefer shopping online.
The Movers
The following retailers were moving in Wednesday’s pre-market session on the speculation:
- Foot Locker, Inc. (NYSE: FL) down 6 percent.
- Dicks Sporting Goods Inc (NYSE: DKS) down 5.9 percent.
- Finish Line Inc (NASDAQ: FINL) down 4.8 percent.
Nike shares also rose as much as 1.9 percent on the report.
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Latest Ratings for NKE
Date | Firm | Action | From | To |
---|---|---|---|---|
Jun 2017 | JP Morgan | Downgrades | Overweight | Neutral |
Apr 2017 | Argus | Downgrades | Buy | Hold |
Jan 2017 | Atlantic Equities | Initiates Coverage On | Overweight |
View More Analyst Ratings for NKE
View the Latest Analyst Ratings
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