Nike ranks among the S&P 500's worst-performing stocks this year, and Bank of America now expects the slide to continue. Analysts led by Lorraine Hutchinson downgraded the sneaker maker on Friday, citing continued consumer caution, a struggling casual sneaker business, and tougher competition in China.
Nike shares are down around 44% so far this year, and the company reports quarterly results next week.
Bank of America downgraded the stock to underperform from neutral on Friday, with analysts led by Lorraine Hutchinson pointing to continued consumer caution and ongoing struggles in the company's classic casual sneaker business. New products aren't resonating with buyers, they said, and competition in China has gotten more difficult.
The stock is currently the 13th-worst-performing stock in the S&P 500 index this year, and analysts expect more pressure ahead. BofA's outlook now points to falling sales through May, erasing earlier hopes for a springtime rebound in the business.
Source: MarketWatch (snippet-based)
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