NEW YORK — Nike Inc. said Friday that it had sold its majority stake in its apparel division to CSc-TSM, a Japanese clothing company with ties to the Tokyo-based fashion industry.
Nike said it would keep a minority stake in CSc and retain the rights to develop and produce a line of sports shoes.
Nikes chief executive Mark Parker said the deal would be worth about $1 billion to $1 and a half billion, depending on the performance of the two companies.
The deal comes as Nike continues to shed more than 40% of its global apparel business and is trying to improve its profitability amid the economic downturn.
Nasdaq OMX Group Inc., a stock index tracking Nike stock, was up 0.9% for the day.