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Big 5 Sporting Goods Will Need to Make Up Lost Nike Sales

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The off-price, 430-door retailer Big 5 Sporting Goods is actively pursuing expanded relationships with existing footwear vendors and partnerships with new shoe vendors to help make up for likely lost Nike sales in the months ahead.

In Q1, Big 5 was informed by Nike that its availability of the Swoosh, which represented an estimated $88.5 million (or 8.5 percent of total revenues) of chain sales in FY20, will be significantly reduced as the shoe company expands its DTC initiatives. According to public filings, Big 5’s Nike sales rose nearly 16.3 percent in FY20 from $71.74 million the prior fiscal year. Conversely, the chain’s overall Athletic & Sport Footwear sales declined to 22.0 percent of revenues in FY20 from 28.2 percent in FY19 and 28.6 percent in FY18. In the retailer’s Q1 ended April 4, total Athletic & Sport Footwear sales rose 16 percent to more than $66.6 million. But it’s not clear how much of that total was generated by Nike footwear.

“This transition is not expected to impact the company’s ability to continue to purchase certain Nike branded products from authorized licensees,” Big 5 said in a recent public filing.