Nike's (NKE) dreadful stretch of earnings under the thought-to-be savior CEO Elliott Hill may not be ending anytime soon, judging by what key partner ******* 's Sporting Goods (DKS) said this week.
"I think we have the [footwear] hangover right now," ******* 's Sporting Goods executive chairman Ed Stack told ******* ysts on his earnings call Tuesday. "We are going through that with these legacy silhouettes. The new styles of shoes that are coming out from brands across the board — whether it be Nike, whether it be Adidas, whether it be On, HOKA — we are going through that reset right now."
Lifestyle sneakers from Nike, with minimal fashion looks, have been solid performers for ******* 's in recent years, but they are quickly falling out of favor with consumers.
In turn, Nike is taking aggressive markdowns to clear slow-moving product. This has led competing brands to replicate these tactics, which is sparking a "domino effect of pricing pressure on styles of yesterday," Jefferies ******* yst Jonathan Matuszewski said.
"This is unfortunate for ******* 's given their high reliance on Nike and growing reliance on other emerging brands in recent years," Matuszewski wrote in a note.

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