Nike, Inc. and the National Basketball Players Association (NBPA) also extended their group license agreement, making Nike, Inc. an official partner of the NBPA.
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Key Takeaways NIKE designs, develops, markets, and sells athletic footwear, apparel, equipment, and accessories. Most of NIKE's sales are generated by selling footwear to wholesale customers in North America.
CEO John Donahoe said that Nike direct — the segment of Nike that sells things through its own stores and e-commerce platform — would still be important to the company, but as more people return to shopping in physical stores, “We must lean in with our wholesale partners and elevate our brand and grow the total ...
While growing its DTC business has proved challenging for Nike, it's return to wholesale provides a significant opportunity for retail partners such as DSW, Macy's, Zappos, among others. Having the global brand's products in their stores and on their websites can drive an uptick in traffic and sales.
Over the past several years, Nike has worked to transform its business from a brand that primarily sold its sneakers and clothes in department stores and specialty athletic shops to one that does the bulk of its sales direct to consumers.
In recent months, market watchers become increasingly skeptical of Nike's progress with this plan, as the Swoosh re-entered or reinvigorated its wholesale partnerships with retailers such as DSW, Macy's and Foot Locker.