JD & NIKE launch Connected Partnership, a reward programme, in the UK today JD Sports has been selected by NIKE (N/R) as the first European retail Partner for its Connected Partnership. This is an integrated reward programme, which gives customers priority access to select NIKE member-exclusive product, experiences & offers when a customer links their JD and NIKE Membership accounts through the JD mobile app. The partnership starts today in the UK with access to member-only footwear & apparel, with experiences & events to come later. Eventually, the Partnership will be extended across key EMEA countries. Both NIKE and JD will use their technological & digital expertise to provide a differentiated proposition both in-store & online. Data on NIKE-only purchases will be shared and this will enable both to engage more effectively with their customers. To be the first European Partner to go live shows the closeness of JD’s relationship with NIKE. From NIKE’s perspective, this is another building block in its ambition to have customer visibility across all channels. NIKE’s first launched Connected Partnership with DICK’s Sporting Goods in the US (Nov 2021), added TOPSPORTS and Taicang in China and, last night, announced JD & Zalando will join in EMEA. NIKE’s CEO commented that ‘our partners are, and will remain, a vitally important part of our marketplace strategy. Partners enable us to serve consumers with expanded access, choice, and convenience.’ NIKE’s Q1 update showed strong demand ahead of plan, helped by improving availability JD commented on the period covered by NIKE’s Q1 (to end August) at its 1H results. NIKE Q1 revenues grew 4% YoY (+10% at constant currency) with double-digit currency-neutral growth in North America (+13%), EMEA (+17%), and APLA, partially offset by declines in Greater China (-13%). NIKE’s wholesale revenues increased 1% (+8% at constant currency) helped by improved inventory levels. In US, wholesale grew low double digit with strong growth from JD/Finish Line and Dicks according to NIKE’s management. NIKE’s Q2 guidance is for low double digit sales growth with a 9pps FX headwind. NIKE said that it continues to see strong consumer demand in US and EMEA helped by better availability but investors appear focused on the fact that NIKE has excess stock in North America to liquidate in Q2. We believe JD US can trade well through the key holiday period as NIKE said it will prioritise the flow of new product in Q2 to its strategic partners and NIKE Direct.