The Beaverton, OR-based athletic footwear, apparel and accessories retailer has struggled with logistics recently, the Wall Street Journal reports. With the partnership, a new apparel supply chain company has purchased existing Nike apparel suppliers in North and Central America and will acquire additional sites to "create a more vertically integrated apparel ecosystem."
The new supply chain company has bought apparel maker New Holland and embellishment, warehousing and logistics business ArtFx.
Financial terms of the deal weren't disclosed, but Nike said it didn't make a capital investment in the entity.
Nike's logistics have raised complaints by some retailers of product delays last year, the Journal noted. The company opened a new Memphis-based 2.8-million-square-foot distribution center in June 2015.
Additionally, Nike recently partnered with Flextronics International (FLEX) in logistics areas such as automation and customization. In May, the company also expanded its European Logistics Campus in Belgium.
Shares of Nike were rising in pre-market trading on Friday. Apollo Global Management stock was flat in pre-market trading this morning.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate NIKE INC as a Buy with a ratings score of B+. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: NKE