Nike (NKE) announced a new initiative around serving customers personally via a direct marketplace The news is hitting Under Armour (UAA) the hardest, but stores focused on selling Nike products will likely be hit the hardest if Nike can bypass them. Finish Line (FINL) and Foot Locker (FL) likely face the greatest impact with the likes of Dicks's Sporting Goods (DKS) seeing some impact. These retail stores rely heavily on Nike sneakers for sales and Nike now wants to deal with consumers directly and save on the margin handed off to the retailers. The interesting move to implement a process of doubling innovation and speed while cutting 2% of the workforce seems odd. If anything, Nike needs more people to meet these goals. Innovation doesn't always take place when one loses a coworker that is a friend. Consumers though like to try shoes on and see all the different offerings from Nike, Under Armour, Addidas (ADDYY) and others. A direct to consumer model will hurt the mall based retailers, but Foot Locker gets interesting on any big dips trading below 10x '18 EPS estimates. The stock is already down $25 from the highs only last month. How are you playing Nike's focus on Digital? Disclosure: Long UA