Nike shoes will return to Macy's shelves later this year after the athletic-apparel giant renewed its wholesale partnership with the legacy department store behemoth. Nike stock edged higher Tuesday. Macy's stock surged to continue its Friday rally after stalling Monday.
Macy's will offer Nike apparel, bags and gear at "key locations" as well as on its website starting in October, CEO Jeff Gennette announced during Macy's earnings call late Thursday. The companies plan to expand the partnership to additional locations next spring.
Nike nixed its wholesale apparel partnership with Macy's, Designer Brands and Urban Outfitters in 2021 to focus on its own direct-to-consumer efforts, Retail Drive previously reported.
"It is imperative that we have the right assortment, including the appropriate mix of private and national brands that our customers care about, with compelling value and price points that appeal to our diverse, fashion-conscious base," Gennette said in the call. "Value does not mean the lowest price. It means offering the right brands, fashion content, and elevated omnichannel shopping experiences."
"It's [Nike is] one of the most important brands for our customer," Gennette continued. "We had lots of customers that were disappointed we didn't carry it over the past year."
Macy's will continue selling Nike footwear at its Finish Line-licensed locations, the company reported.
Macy's earnings topped estimates for its Q1 report last Thursday despite tumbling 48% to 56 cents per share. Meanwhile, sales faded 7% to fall short of expectations. The company slashed its full-year forecast in anticipation of worsening macroeconomic conditions.
Nike Stock, Macy's
Nike stock was downgraded to a sell rating by Williams Trading in late May based on expected headwinds for its U.S. business. The company hiked its full-year revenue guidance in late March after smashing estimates for its Q3 earnings report.
Nike stock edged higher Tuesday. NKE stock fell 2.4% Monday after surging 4% during trading Friday. Shares have retreated 9.3% so far this year.
M stock swung 6% higher Tuesday. Shares slid 2.7% Monday after Macy's reversed to rally more than 12% Friday on the heels of its earnings results. Macy's stock has unraveled 23% year to date.
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