Wedbush analyst Christopher Svezia thinks concerns that Foot Locker (FL) and Dick's Sporting Goods (DKS) will suffer from the upcoming Nike (NKE) launch on Amazon.com (AMZN) are overblow, Barron's reported.
Nike's pilot launch on Amazon is "sub-optimal" right now, especially compared to rivals that have a direct relationship with Amazon. Svezia thinks Nike clamored for the partnership because it was worried about losing market share.
But Foot Locker and Dick's should remain insulated because of their consumer profiles and strong relationships with and investments from Nike. Nike's House of Hoops concept with Foot Locker and Field House strategy with Dick's make them both "critical partners."
Because Nike is a "master at market segmentation," it won't threaten Dick's or Foot Locker with an Amazon launch.'
Dick's stock traded down 0.5%, Foot Locker stock traded down 2.2% and Nike stock traded up 0.4% mid-morning.
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