Nike Can Play Through This Slump
Nike’s enduring popularity means it can command full prices—both for its Air Jordans and its shares, it seems. Being cash rich certainly doesn’t hurt.
The company reported weak results Thursday. Revenue declined by 38% from a year earlier in its fourth fiscal quarter, ended May 31. That was worse than the 28% drop that analysts had expected. The company swung to a net loss, also a surprise. Inventories were up 31% compared with the prior year. Still, shares were only down around 4% in after-hours trading.