Nike to resume selling directly on Amazon, analysts react

Investing.com -- Nike will once again sell its products directly on Amazon (NASDAQ:AMZN), marking a return to the e-commerce platform after ending a previous partnership in 2019. 

The move, confirmed by an Amazon spokesperson and first reported by The Information, is drawing positive reactions from Wall Street analysts who view it as a strategic shift under new CEO Elliott Hill.

“We’re bullish on the opportunity,” wrote Truist analysts, highlighting that Nike’s return to Amazon signals improved wholesale strategy and product accessibility. 

They noted that Amazon’s efforts to reduce counterfeiting—long a concern for Nike—have made the platform more brand-friendly. 

“Amazon’s Counterfeit Crimes Unit has made meaningful strides in cleaning up the platform,” Truist said.

During its previous pilot with Amazon from 2017 to 2019, Nike (NYSE:NKE) pulled back to focus on its direct-to-consumer strategy. While third-party sellers continued offering Nike goods, Amazon this week notified some merchants that they would be barred from selling certain Nike items beginning July 19, indicating the company’s new direct relationship with Nike.

Jefferies analysts also endorsed the move. “Just Buy It!” they declared, reiterating a Buy rating on Nike shares. 

“This move expands Nike’s reach and reinforces its dominance as the #1 athletic footwear brand,” Jefferies added.

Analysts from both firms pointed to Nike’s diversified product range and strong brand identity as key advantages, with Jefferies emphasizing that Nike’s valuation “remains compressed” and CEO Hill is “making all the right moves.”

“We like this move by Nike plain and simple,” said Jefferies. “The move further cements Nike’s brand ubiquity. Nike’s extensive product lines and price ranges further drive its strong TAM and SAM. We believe the market undervalues these advantages.”

“Given valuation remains compressed at current levels, we see potential for meaningful upside over the next 12-24 months. So “Just Do It” and buy NKE shares.”