Analysts who follow Nike are expressing skepticism about its move to consolidate online sales in China.
The company said Wednesday that it will cut off most of the third-party e-commerce vendors who sell its products, consolidating sales into about a dozen of the country's top e-commerce platforms and Nike's own Chinese-language website and app.
"The decision to terminate this very important channel is a strategic misstep in our view," said Laurent Vasilescu, an analyst at BNP Paribas.
Analyst at Citigroup called it "an extreme move and a risky strategy," saying that it "opens the door for others to capture share in the market."
Shares of Nike were recently down about 2% on a day when the S&P 500 is roughly flat. The stock has fallen about 44% in the past year.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.