Nike Reclaims Top Spot at Foot Locker, Says JPMorgan

JPMorgan analysts report that Nike's product placement has returned to "pole position" at Foot Locker stores for the first time in two years. Nike is taking the first three columns of the men's footwear panel and offering exclusive colors to Foot Locker. The firm maintains an Overweight rating on Nike shares.

Title: Nike Regains Pole Position at Foot Locker

JPMorgan analysts have reported that Nike's product placement has returned to "pole position" at Foot Locker stores for the first time in two years. According to the firm, Nike is now taking the first three columns of the men's footwear panel and offering exclusive colors to Foot Locker. This development comes as Nike's new CEO, Elliott Hill, continues to focus on rebuilding wholesale partnerships and refocusing the company on its core sports products.

Foot Locker is positioning Nike's running shoes in the lead columns of the men's sections in its stores, a move that had not been seen since 2023. This shift is part of a broader strategy by Nike to regain its market dominance after a period of decline in wholesale sales. Nike's products once accounted for about 75% of Foot Locker's total purchases but dropped below 60% in 2022, a decline that hurt Foot Locker's business.

Hill has been working to mend ties with Foot Locker and other wholesalers, a move that has seen Nike's products regain prominence in the retailer's stores. The two companies are also collaborating on expanding Foot Locker's Home Court basketball sections, with plans to add these sections to 100 stores worldwide by 2026.

JPMorgan maintains an Overweight rating on Nike shares, suggesting that the firm believes the company's recent moves are positive for its stock. Bernstein has also raised its price target on Nike to $90 from $85, maintaining an 'Outperform' rating. The question of whether the Jordan brand can be resuscitated to drive another multi-year wave of brand heat remains a critical piece of Nike's comeback story.

Nike's stock has gained nearly 2% so far this year but has declined over 7% in the last 12 months. The retail user message count on Nike jumped 133% in the last seven days on Stocktwits, indicating a significant increase in investor interest and discussion about the company.

This development underscores Nike's efforts to reassert its dominance in the sportswear market and highlights the importance of strong wholesale partnerships in achieving this goal.

References:
[1] https://newsable.asianetnews.com/markets/nike-reclaims-pole-position-at-foot-locker-says-jpmorgan-retail-investors-believe-ceo-elliott-hill-is-making-the-right-moves-articleshow-dugw60r
[2] https://in.fashionnetwork.com/news/Nike-regains-spotlight-at-foot-locker-for-first-time-in-years,1756871.html