Nike Reduces Wholesale Network

Today I have a report for you from website Footwear News. Huh, who even knew that such an important source existed!

Nike will no longer sell its shoes and apparel via nine major wholesale partnerships in the US. They have cut ties with Belk, Dillard's, Zappos, Boscov's, Bob's Stores, Fred Meyer, EBLens, VIM and City Blue.

This is according to a stockbroking analyst, Sam Poser, who covers the sector for Susquehanna Financial Group: "Nike's decision to no longer sell to nine multi-branded wholesale accounts is positive, as it takes control of more of its own destiny".

While not directly confirming the moves, Nike sent the following statement to the hardworking writers at Footwear News: "Nike has a bold vision to create the marketplace of the future, one closely aligned with what consumers want and need. As part of our recently announced Consumer Direct Acceleration strategy, we are doubling down on our approach with Nike digital and our owned stores, as well as a smaller number of strategic partners who share our vision to create a consistent, connected and modern shopping experience."

This shows how powerful Nike is, and the success that they have had in selling directly to their customers through their own web channels. Great for their margins, of course. Nike stock is trading at a new all-time high, above $110 per share. It's not too late to buy the shares though, I expect them to keep doing well.