Nike shares surged yesterday despite a dismal profits slump as investors bet on a recovery for the beleaguered sports giant.
Profits for the three months to May 31 plunged 86 per cent to £154m – the lowest since the same quarter during the pandemic of 2020.
But a collapse in sales was not as bad as first feared, with a fall of 12 per cent to £8billion instead of the 15 per cent analysts forecast.
And Nike said it expects the sales fall to narrow to single digits in the current quarter.
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Boss Elliott Hill also insisted there was ‘a clear path to recovery ahead’, which helped push shares up 15 per cent in New York. He said: ‘From here, we expect our business results to improve. It’s time to turn the page.’
Hill said there were green shoots such as the increasing popularity of its running shoes division.
Closer to home, JD Sports, a major seller of Nike gear, was boosted on the London stock market, with shares closing up 7.6 per cent, or 6.18p, to 87.88p. The High Street retailer has been hit by a downturn in demand for Nike designs.
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