Nike Inc (NYSE:NKE) shares traded higher as famed activist investor Bill Ackman acquired a new stake in the sportswear company.
Ackman’s investment company Pershing Square Capital Management, which recently flirted with an IPO before shutting the process down, has bought around 3 million Nike shares, according to a stock market filing.
It comes amidst turbulent trading for Nike which in past weeks has seen its shares fall following a profit warning.
Stiff competition from Adidas, which has seen a number of key lines ‘trending’ in 2024, as well as new rivals like Hoka and Roger Federer’s On brand has seen Nike lose market shares and measure sales declines.
Notably, Nike has this year seen softer sales in China.
Nike stock was down nearly 30% in 2024 to date, but has rallied in recent days.
On Thursday, the Ackman stakebuilding news helped push the shares to gain 5.6% to $82.86.