Delayed turnaround places Nike on the again foot as shares take one other tumble

Nike shares plunged yesterday after it warned its turnaround is taking longer than hoped.

Boss Elliott Hill has been trying to revive sales at the US sportswear group but admitted this is ‘taking longer than I ​would like’.

The US-based group’s results, published late on Tuesday, showed sales flat at £8.5billion over the three months to the end of February – slightly better than expected.

But investors were spooked after bosses said sales in the current quarter to the end of May would drop between 2 and 4 per cent.

Trading has been hit by weak footfall to Nike’s Chinese shops – where sales are set to fall 20 per cent – while conflict in the Middle East has hit consumer confidence.

The forecast came as a shock to shareholders as analysts had been expecting a 1.9 per cent rise for the three months to 31 May.

Out of fashion: Nike’s results, published late on Tuesday, showed sales flat at £8.5bn over the three months to the end of February – slightly better than expected

Shares tumbled 14 per cent in New York trading, adding to losses of almost 30 per cent this year so far.

Nike has been criticised for a lack of new products that appeal to Gen Z youngsters while facing hot competition from rivals including On and Hoka.

Hill added: ‘The work is not finished, but the direction is clear, our teams are moving with focus and urgency, and our foundation is getting even stronger to build the future of Nike.’