Nike to launch pilot programme with Amazon

Nike Inc stock was up after the sports brand delivered an upbeat forecast and announced plans to enter into a closer relationship with shoppers, a move that will allow Amazon and Instagram users buy its sneakers directly.

The brand sees mid-to high-single-digit percentage sales rise this year, excluding currency effects. The prospect of faster growth helped lift Nike shares as much as 7.1 per cent in early trading today.

The upbeat forecast comes after a slowdown at Nike, especially in the key North American market, that had led to worries that the sporting-goods giant was losing its appeal. Adidas AG, a hot commodity in the US after falling out of favour for years, had been a particular threat.

However, Nike assured investors yesterday that the region was set to rebound. While North American sales would slump in the first half of fiscal 2018, they should post a gain for the full year. New products will be key to the resurgence, chief executive officer Mark Parker said.

''I've never felt as energised by what we have from innovation coming into the pipeline,'' he said on a conference call. ''That's why we're so confident.''

The shares rose to a high of $56.94 in pre-market trading. The stock had lost 3.6 per cent in the past year through yesterday's close.

"We're looking for ways to improve the Nike consumer experience on Amazon by elevating the way the brand is presented and increasing the quality of product storytelling," Parker said.

The Oregon-based company saw greater demand for its core brands, including Jordan, and in sportswear and running categories. It said its selling, general and administrative expenses were down 4 per cent to $2.7 billion in the fourth quarter ended 31 May.

According to commentators, with competition increasing in North America, Nike was focusing on its new and core brands such as ZoomX, Air VaporMax and Nike React.