Nike's Bumpy Road to Recovery

Nike's shares got a big boost recently, jumping over 10% after hours. This happened even though the company reported some of its worst results in years. Investors seem hopeful that Nike's new plans might finally start working. The company's CEO, Elliott Hill, came back from retirement to lead Nike. He talked about new strategies, like focusing more on sports products. He mentioned that Nike's running shoes are doing better, with sales up by a good amount. This is important because other brands have been taking market share from Nike in this area. But it's not all good news. Nike's profits dropped a lot, by 86%, compared to the same time last year. The company also said it expects sales to keep falling in the next quarter. They blamed some of this on their past focus on direct-to-consumer sales and relying too much on fashion trends. Nike is also dealing with higher costs because of new tariffs. They're moving some of their production out of China to avoid these extra costs. Despite all these challenges, investors seem to believe that Nike can turn things around. The company's revenue was $11. 1 billion, which is better than expected but still the lowest since 2022. The CEO admitted that these results aren't up to Nike's usual standards. But with new plans in place, there's hope that things will improve.