Nike has announced it will sell Adidas shoes to the end of March in the United States.
The shoe maker says the deal will help it expand into the global market and also help it grow its footwear business, which was up about $10 billion in the last year.
“We’ve had to work very hard to be here,” Nike CEO Mark Parker said in a statement.
In a recent interview with Bloomberg Businessweek, Parker said the company has seen “very significant growth” in footwear sales over the past five years.
Adidas’ footwear business grew $10.4 billion last year, according to its latest annual report.
The shoe company said it sold 4.1 million pairs of Adidas shoes in the first quarter, up from 4 million in the same period a year ago.
Nike, which had revenue of $4.1 billion in 2016, had net income of $2.2 billion, according a Reuters estimate.
Wall Street’s reaction to the deal was mixed.
While some analysts predicted a big profit for Nike, others said the deal would hurt its bottom line.
Forbes, for example, said Nike will pay $5.1 per share for Adidas, or about $5 billion.
But Wall Street analysts said the profit potential for Nike could be limited because it has not disclosed the value of its footwear brand.
A separate deal between Adidas and Chinese retail giant JD.com fell apart on Wednesday, and a deal between Nike and Chinese e-commerce company JD.cn fell apart as well.
This is the first major shoe deal between the two companies, which have been engaged in a fierce battle over technology in the market for a while.
JD.com, a Chinese company, has developed a new way to sell its shoes.
The company said in its earnings call on Wednesday that it will offer a “smart” and “hybrid” footwear app, which will let users track their shoes and track the price of their shoes.
Shares of JD.
Com were down more than 2 percent.
Meanwhile, Nike said on Wednesday it would not sell its Adidas shoes online in China, the biggest market for its brand.
The shoes company said the decision was made “to protect our brand, its brands and its reputation.”
On Wednesday, China’s Securities and Exchange Commission said it will investigate whether the sale of Nike’s footwear was illegal, according for China’s official Xinhua News Agency.
At least three of Nike and Adidas’ shoe companies were also fined by the Chinese government, including the company that makes the Air Max sneaker, after regulators said they failed to take necessary measures to prevent the spread of counterfeit shoes.