JD Sports and Nike strike ‘Connected Partnership’ deal

JD Sports customers will get enhanced access to Nike products after the two sportswear retailers announced a new partnership.

Customers of both companies can link their membership accounts together and enjoy certain benefits as part of Nike’s ‘Connected Partnership’ loyalty program.

These benefits include an instant rewards bonus, curated collections and “unprecedented access to select footwear and apparel for Nike members,” said Bury-based JD.

The FTSE 100 group is the first European company to become a retail partner of the American multinational, famous for its Air Jordan trainers and tick logo, whose market capitalization is estimated at $150 billion.

Nike began the partnership agreement in October last year with Dick’s Sporting Goods, one of the largest retailers of sporting goods in the US.

Another partnership with German online commerce company Zalando, which has nearly 50 million customers in 25 markets, kicks off next month in Austria before expanding to other territories.

Carl Grebert, Nike’s vice president in the EMEA region, said the deals will bring “the best Nike products and experiences to customers from two of Europe’s largest and most dynamic retailers, with greater speed, convenience and connection to our brand.” and our sport than ever before.’

The announcement comes a day after Nike released its first quarter results showing revenues grew 10 percent year-over-year to $12.9 billion for the three months to the end of August.

Trade was boosted by strong demand for shoes and sales growth in North America outpacing the decline in Greater China, where strict lockdown restrictions have hit retail hard.

Unfortunately, net income declined 22 percent to $1.5 billion due to rising transportation costs, weaker margins in the Nike Direct business and unfavorable currency movements, driven by a stronger dollar.

Last week, JD Sports released its half-year results that partially blamed a decline in profits on rising logistics costs in its North American operations.

The company also faced impressive comparisons from last year, when the US government awarded $1,400 direct payments to its citizens and more generous unemployment benefits as part of a major stimulus package.

That trade update caused JD Sports Fashion shares last Thursday more than any other blue-chip London company.

After announcing the acquisition of Nike this morning, they fell 1.6 percent to 98.3p by late afternoon, meaning their value has fallen by more than half in the past 12 months.

Commenting on the Nike partnership, JD CEO Regis Schultz said the two companies “have a long and successful history of working together as strategic partners to provide customers with exceptional product offerings and seamless omnichannel experiences.

He added: “This partnership – the first to be launched in Europe – amplifies the combined strength of the Nike and JD brands with our shared consumers by tapping into their behaviors and journeys to create new, richer and more engaging experiences. ‘