NKE - Nike runs back into Macy's stores as rekindles wholesaler relationships

2023-06-05 06:33:48 ET

One of the more interesting revelations from Macy's ( NYSE: M ) earnings report last week was the update that the department store operator will reintroduce Nike ( NKE ) in stores during October following an 18-month period of the two companies pulling apart from each other.

Macy's ( M ) CEO Jeff Gennette said an expanded Nike ( NKE ) selection available online and stores will include apparel, plus size women's, big and tall men's, kids, bags and gear. "This mutually beneficial relationship reflects our strategy to provide customers with an enhanced and elevated offering," he noted. The roll-out of Nike ( NKE ) products is expected to be scaled further in 2024.

Weighing in on the development, BTIG analyst Janine Stichter said the Macy's ( M ) news could be evidence of Nike ( NKE ) selectively leaning back into wholesale, as it realizes the importance of the channel in reaching a customer base not accessed through the direct-to-consumer channel. The firm also views it is a positive for Foot Locker ( FL ) as the mall retailer looks to revitalize its partnership with key vendor Nike ( NKE ) under new CEO Mary Dillon. Of course, Nike ( NKE ) itself could also get a sales boost as its products head back into Macy's ( M ) stores and the +40M customers that shop with the brand.

Shares of Macy's ( M ) fell 0.26% in premarket trading on Monday after a 12.15% pop on Friday. Foot Locker ( FL ) was flat in the early session and Nike ( NKE ) was down 0.15% .

More on Macy's:

• Macy's: Positioned To Outperform Peers With Compelling Margin Of Safety
• Macy's Q1 earnings highlights
• Macy's earnings call transcript
• Growth metrics on Macy's
• Valuation metrics on Macy's
• Seeking Alpha's Quant Rating for Macy's

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