Nike's latest earnings report brought a mixed bag of results — mostly positive — along with another highly anticipated announcement. The retailer confirmed plans to begin selling a limited assortment of footwear, apparel and accessories on Amazon.com
Analysts are also picking up on how Nike's apparel business is performing, noticing that clothing sales slowed in the fourth quarter. This, as many retailers are struggling to find a so-called sweet spot in the apparel industry.
It's a tough space to be in, as trends come and go so quickly, customers' shopping habits are evolving, and many companies are striving to create the best omni channel approach to capture sales.
Nike is also starting to cut back on less profitable wholesale partnerships, something that will help the brand over the long term.
Fortunately for Nike, apparel doesn't make up as much of the retailer's revenue, especially when compared with rival Under Armour.
Under Armour essentially bills itself as an apparel company. As Under Armour has stumbled with apparel in the past, another slowdown in this category could make it tough for them to bounce back.
Under Armour is expected to report second-quarter earnings later this month.
For the first quarter, Under Armour's apparel revenue climbed 7 percent from gains in training, golf and team sports, while its footwear sales grew a mere 2 percent.