Nike Global Trading B.V. (Nike) and its partners in Brazil, led by Grupo SBF S.A. subsidiary Fisia Comércio de Produtos Esportivos S.A. (Fisia), have amended their Brazil Distribution Agreement to extend their current agreement through through May 31, 2034.

The Brazil operation comprises a strategic partnership whereby Fisia acts as:

  1. The exclusive distributor of Nike products, including apparel, footwear, accessories and equipment, in the Brazilian territory, as well as the exclusive operator of the online retail channel (www.nike.com.br); and
  2. The main brick-and-mortar Nike store retailer, responsible for the commercialization of products to final consumers through Nike monobrand stores in the Brazilian territory.

Additionally, the Amendment provides for a rolling basis renewal mechanism, whereby the parties shall meet annually to discuss the extension of the term of the Distribution Agreement for additional periods of one year, subject to the execution of a formal extension agreement, which allows Nike’s Brazilian partners to seek, on an annual basis, the expansion of the contractual horizon, providing approximately seven years of contractual predictability, compared to the approximately five years of predictability previously in place, reinforcing the stability and continuity of the long-term partnership with Nike.

The original agreement was executed on December 1, 2020.

Nike’s Brazilian partners said they believe that the execution of the Amendment represents a significant milestone in strengthening the strategic partnership with Nike, by providing

  1. Greater long-term contractual predictability and security;
  2. A renewal mechanism that enables the continuous extension of the commercial relationship; and
  3. Strategic alignment between the parties for the sustainable development of the Nike product distribution operation in Brazil.

Image courtesy Fisia Comércio de Produtos Esportivos S.A.