Nike Inc.’s (NKE.N) investors are keeping the faith in the wake of a misconduct scandal that’s seen several executives depart. Shares of the sneaker giant rose as much as 2.7 per cent to US$71.35 on Wednesday, a record high for the company that went public in 1980.
The stock got a boost from Macy’s Inc. (M.N), a Nike customer, that lifted much of the retail and apparel industry after reporting first-quarter sales that topped estimates and raised its full-year profit guidance.
Nike made its review of executive behavior public in March with the ouster of Trevor Edwards, who was president of the Nike brand and one of the favorites to eventually replace Chief Executive Officer Mark Parker. Since then, several more high-ranking employees have left the company.
But none of that has slowed down the stock. It’s up 7 per cent since then, compared with a decline of about 1 per cent for the Standard & Poor’s 500 Index.