NIKE TO STICK WITH AMAZON, LAUNCH ON STITCH FIX
Athletic giant Nike Inc. has announced it will extend its pilot program with Amazon and will work with online personal styling service Stitch Fix in the spring.
Nike’s pilot for selling products on the website of Amazon is “going well” and will be extended, CEO Mark Parker said on a conference call Thursday when Nike reported its second-quarter earnings for fiscal 2018. “We’ve seen good sell-through on the limited selection of products that we have offered,” he said.
“This Spring in the U.S., we’ll run a pilot with Stitch Fix, the online personal styling service, to bring personalized women’s product to their expansive audience,” Parker continued. “And we’re extending our pilot with Amazon. It’s going well, and we remain focused on learning and elevating the consumer experience.”
Parker went on to add: “Another key piece of our digital strategy…is to continue to advance the role that product plays in unlocking experiences. You know about our first step with the NBA Connected jersey, and next year, we’ll introduce the NikeConnect Air Force 1. We see massive potential in a future where more Nike products are connected – bringing consumers inspirational content and serving as the on-ramp for Nike membership.”
Nike reported on Thursday that its second-quarter 2018 revenue rose 5 percent to $8.6 billion. Gross margin fell 120 basis points year over year to 43 percent, as higher average selling prices were more than offset by unfavorable changes in foreign currency exchange rates and, to a lesser extent, higher product costs per unit.
