By James Davey
LONDON, Sept 23 (Reuters) – Nike is taking the right steps to revive its business and a turnaround is only a matter of time, said the finance chief of British sports and fashion retailer JD Sports, one of the U.S. group’s largest customers.
Nike CEO Elliott Hill, nearly two years into his tenure at the helm of the company, has pushed to reset Nike’s strategy by refocusing on key sports like soccer and running, by rebuilding wholesale relationships and by introducing new products. But Nike’s shares have fallen 43% so far this year as investors grow impatient with his progress.
“Much as there’s a lot of talk about Nike, it’s still the most popular brand out there and it’s still a very strong brand,” Dominic Platt, JD Sports’ chief financial officer, told Reuters after the group published first half results on Wednesday.
“We think they’re doing absolutely the right things,” he said.
JD was not frustrated with Nike’s progress.
“What we do see is their performance ranges are coming through well – brands like Vomero, Pegasus are resonating well with customers, so it really is just a matter of time,” Platt said.
“This is a big business and big businesses don’t turn round in six months.”
(Reporting by James Davey; editing by Sarah Young)
