The Nike Adventure Club mail-order service, starting Aug. 12, comes in three tiers: The cheapest is on a quarterly basis for a monthly fee of $20. Bimonthly ($30 a month) and monthly ($50 a month) service agreements are also offered so children with rapidly growing feet can get new kicks each month. Most sneakers for this age group retail for about $60 each without the subscription, so that's a $10 savings.
In addition to gaining that regular recurring fee, Nike said it aims to build brand loyalty and add convenience and cost savings to parents' lives. The mail order comes with a sizing chart magnet to allow parents to accurately measure their children's feet. If the size is wrong, parents are allowed to order new shoes, even before the old ones are returned, CNBC reported.
"We see Nike Adventure Club sits as having a unique place within Nike, and not just for it being the first sneaker club for kids," said Dave Cobban, vice president of Nike Adventure Club, on the company's website. "It provides a wide range of options for kids, while at the same time, it removes a friction point for parents who are shopping on their behalf."
Nike has a dividend yield of 1.1%. The target price is $94.77 and average rating is overweight, according to FactSet.
The stock was trading at $81.51, off 0.57% on Monday.