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Dick's Sporting Goods Stock Jumps After New 'Connected Partnership' With Nike

Dick's Sporting Goods and Nike on Wednesday unveiled a 'connected partnership' that could drive further digital-sales gains for the sports-focused companies.

Dick's Sports Goods  (DKS) - Get Dick's Sporting Goods, Inc. Report shares jumped higher Wednesday after the sporting goods retailed unveiled a marketing and distribution partnership with Nike  (NKE) - Get NIKE, Inc. (NKE) Report.

The pair said the deal will allow customers to access "exclusive products, experiences and offers" by connecting the Dick's Scorecard and Nike membership accounts through the Dick's mobile app. Dick's customers will also set access to an expanded collection of Nike footwear and apparel, the companies said, and member-exclusive launches of new collections.

Last last month, in fact, Dick's said it would hire 9,000 workers over the holiday season, a 12.5% increase from last year, as it revamps its employee base to focus more on the fulfilment of digital sales.

"Dick's and Nike have a long and successful history of working together, and this partnership represents a significant strengthening of our relationship," said CEO Lauren Hobart. "We are both focused on delivering best-in-class experiences and products and creating the best omnichannel experience for our athletes."

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"Combining our capabilities in these areas will create a unique experience in the market for athletes who shop with Dick's and Nike," she added.  

Dick's shares were marked 4.1% higher in early afternoon trading Wednesday to change hands at $129.40 each while Nike bumped 1.8% higher to $170.80 each. 

Nike cut is full-year sales forecast in late September to a "mid-single digit" growth rate, from a previous estimate of double-digit gains, owing to supply chain issues that it said were impacting the movement of goods from Asia to north America.

The move followed a mix set of fiscal first quarter earnings which included an 15% increase in north American revenues, which topped $4.8 billion, and 43% surge in regional digital sales.