To take an adage from the sporting world – form is temporary, class is permanent.
Nike may have had a tough time, but it remains the dominant player in what is, with Adidas trailing a little behind, a duopoly in the sportswear and trainers market.
AJ Bell’s Russ Mould said: “The best quarterly revenue growth in a decade is testament to the brand’s inherent strengths. It may have had to ease up on pricing to clear some excess inventory but Nike’s ability to appeal across class and age demographics means wealthier clientele, less impacted by the cost-of-living crisis, have also helped to drive sales.
“The improvement in the supply chain is crucial as Nike looks to get its products to the right customers at the right time and this should enable it to better manage its inventories and increase its margins.
“If it can get these basics right then Nike has already proved it is very good at all the other stuff like product innovation, brand-building and marketing, which give it huge competitive advantages. These should enable it to benefit from supportive trends around health and fitness, the casualisation of fashion and the growth in athleisure.
“There remain obstacles to clear in the short term, particularly in the important Chinese market where the fate of the country’s big reopening hangs in the balance thanks to mounting Covid infections.
“However, Nike looks like it is stepping up to the plate and its continued shift towards selling more direct-to-consumer should give it greater control over its own destiny.”