Nike (NYSE:NKE) shares slipped 1.4% in premarket trading on Tuesday after Evercore ISI downgraded the sportswear giant to In Line from Outperform and reduced its price target to $46 from $57.
The brokerage cited weakening sales trends, limited product innovation and growing concerns that Nike may need to lower market expectations ahead of a key investor event later this year.
Nearly two years into Nike's turnaround strategy, Evercore said its latest channel checks continue to reveal signs of pressure across several important parts of the business.
The firm pointed to worsening conditions in U.S. lifestyle and family retail channels, where order cancellations and delayed purchases are reportedly exceeding company expectations.
Analysts also highlighted softer demand for recent Jordan retro product launches and supply chain disruptions in Europe that have delayed the arrival of World Cup-related merchandise.
The brokerage cited weakening sales trends, limited product innovation and growing concerns that Nike may need to lower market expectations ahead of a key investor event later this year.
Nearly two years into Nike's turnaround strategy, Evercore said its latest channel checks continue to reveal signs of pressure across several important parts of the business.
The firm pointed to worsening conditions in U.S. lifestyle and family retail channels, where order cancellations and delayed purchases are reportedly exceeding company expectations.
Analysts also highlighted softer demand for recent Jordan retro product launches and supply chain disruptions in Europe that have delayed the arrival of World Cup-related merchandise.
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