The end of a long-simmering dispute between Nike and Foot Locker could mean trouble for rivals that benefited from the feud, analysts said.
Nike said earlier this week that it would resume shipments of hot sneakers like Air Jordans and Air Force Ones to some of Foot Locker’s 3,028 stores, signaling an end to an embargo that had roiled the entire athletic industry.
The relationship between Nike and Foot Locker soured in September 2002, after the two companies quarreled over the pricing and selection of products.
As Nike cut back orders to Foot Locker, it turned to other retailers like Finish Line and Footstar, owner of the Just For Feet and Foot Action chains, to fill the void. Both of those retailers benefited from increased supplies of in-demand styles.
Foot Locker, on the other hand, looked to rival manufacturers like Reebok, Adidas and K-Swiss to pick op the slack from a declining Nike business.
Now that Nike and Foot Locker have patched up their differences, their dependence on rivals should lessen, analysts said.
Among the most vulnerable to cutbacks are Adidas, which has had some styling missteps lately, and Footstar, which is expected to restate earnings amid an accounting investigation, said John Shanley, of Wells Fargo Securities.
Matthew Serra, Foot Locker’s chief executive, told analysts during a conference call yesterday that business with Reebok and K-Swiss remained strong, suggesting that Foot Locker would not curtail orders from either company.