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Takeaway: NKE walks away from ManU - Adi close to £750mm deal. NKE releases new football clear. SHLD sets the standard for buy online/pick up in store


Thursday (7/10)

  • FDO - Earnings Call: 10:00am

Friday (7/11)

  • PSMT - Earnings Call: 12:00pm



NKE, AdiBok - Nike Says Manchester United Jersey Deal to End Over Valuation


  • "Nike Inc.’s 13-year relationship with Manchester United will end next season because renewal terms sought by the record 20-time English champion were excessive…"
  • "The current contract, signed in 2002, is worth a minimum of 23.3 million pounds a year to United through the 2014-15 season. The team wanted to increase that to more than 60 million pounds, a person familiar with the discussions said yesterday."
  • “'Any partnership with a club or federation has to be mutually beneficial,' Beaverton, Oregon-based Nike said in an e-mailed statement. 'The terms that were on offer for a renewed contract did not represent good value for Nike’s shareholders.'”

Takeaway: For our thoughts on the topic see our note from this morning. Link: https://app.hedgeye.com/feed_items/36606-nke-walking-away-from-manchester-united-deal?page=1



  • "New Nike Vapor Ultimate Cleat combines Nike Flyknit and game-changing plate technology for unprecedented lightweight speed and strength."
  • "Nike Flyknit debuted with the Nike Flyknit Racer in 2012 and more recently in the KOBE 9 Elite basketball shoe, Nike Magista soccer boot and Nike Mercurial Superfly."

Retail Callouts (7/9): NKE, AdiBok, SHLD, TGT, KSS - chart1 7 9

Takeaway: After a black eye in Brazil yesterday and reports that the company is terminating its 13 year partnership with ManU, NKE could use a tire pump. This new football cleat (American football this time) release is textbook Nike. Take an existing piece of innovation, incorporate it across product categories (running, basketball, soccer, football), stager the release dates, issue a press release and voila. There's not another player in the game that can create the type of buzz around product launches like Nike.

SHLD, TGT, KSS - Sears, Kmart Team to Expand Free Store Pickup to More Than 2,000 Locations


  • "Sears and Kmart, two leading integrated retailers focused on making shopping easier for Shop Your Way members and customers, are introducing a unique online/in-store collaboration to allow pick up of sears.com or kmart.com orders at any of each other's stores – more than 2,000 locations nationwide – ready in five minutes or less."


Takeaway: Rarely does SHLD set the standard in this space, but this buy online/ pickup in store initiative across banners is impressive. TGT and KSS take note. Both are way behind Sears and Kmart, with TGT rolling out buy online/pickup in store nationwide in fall '13 and KSS set to begin the program in 3 markets during the 3rd quarter of this year. If more purchases are going to shift to the internet then at least give consumers a reason a convenient reason to visit your stores. They may even go inside.



KORS - Michael Kors Taps Mark Brashear as Part of Major Men's Push


  • "On Tuesday, the company revealed that Mark Brashear, who resigned last month as chairman and ceo of Hugo Boss Americas, has been brought on board as global men’s wear president for the rapidly growing Kors brand. Brashear will spearhead a major expansion of the company’s men’s business, which will include the rollout of freestanding men’s stores starting next year as well as the extension into new categories, as Kors surges toward its goal of building a $1 billion men’s brand."