FOSSIL FIT: The New York Times Magazine reports that Nike has pulled out of discounts for some of its most popular sports apparel brands.
The move was announced Tuesday and will leave Nike in a difficult position, with only a handful of brands offering discounts for sports apparel on its website and at select retailers, according to the magazine.
The news comes as the company grapples with falling stock prices, the fallout from its partnership with China’s state-owned aerospace giant China Aerospace Science and Technology Corporation (CASC), the potential for an antitrust lawsuit and a crackdown on online retailers.
PURCHASE AND SALE: Nike has been struggling to keep up with rising demand for its products, as shoppers increasingly prefer to buy online and on physical stores.
Last year, the company reported sales of $1.2 billion for the year ended March 31.
Nikes shoes and apparel were among the biggest sellers, with sales totaling $1 billion in the United States and $821 million worldwide.
In a statement, a Nike spokesman said: “Nike appreciates the continued growth of its apparel business, which has been the most valuable part of our business for years, and will continue to invest in expanding its retail channels and delivering a range of innovative products to our loyal customers.”
Nike’s chief marketing officer, Tom Beres, said the company had decided to stop selling its products at discount stores.
“Nike is making this change as a way to align its retail strategy with the increasing demand for our brands, which are still a core part of the business,” Beres said.
“We look forward to continuing to invest and develop our brand portfolio for a long time to come.”
Nikes apparel has been a big seller for years.
Beres said that Nike will continue its partnership to sell its shoes at discounted stores but it will focus on new deals.
“The more people we get in the store, the more people can buy,” he said.
“This will be a continuation of our relationship with Nike with some great new deals coming up for the next couple of years.”
The New York-based retailer has also started to offer discounts to customers through other retailers, including Wal-Mart.
According to Bloomberg, Nike was a major player in apparel for the last 20 years.
The company has been one of the largest sellers of sports gear, apparel and accessories worldwide, and is valued at $14 billion.
More from Bloomberg: For decades, Nike has been in the business of making shoes and accessories that are durable, comfortable and stylish.
It has been credited with revolutionizing the way women and men wear shoes.
But the company’s stock price has fallen sharply over the past year amid concerns about the China trade deal, including the possibility of an antitrust investigation and the threat of a crackdown.