UBS has adjusted Nike's price target from $82 to $80, maintaining a "Neutral" rating due to concerns about the company's global sales growth.
Analyst Jay Sole believes that Nike's sales performance has weakened over the past three months, which may lead the company to issue conservative targets for the current quarter.
The sporting goods sector as a whole is facing challenges, with retailers like Foot Locker experiencing sluggish demand for athletic footwear.
The retail landscape is cautious, with consumers becoming more selective in their spending habits.
As the holiday season approaches, retailers are preparing for a shorter sales window and consumers are opting for value-driven purchases.
Despite the challenges, some analysts, such as BofA Securities and JPMorgan Chase, still see value in Nike and believe in its long-term growth prospects.
Nike's revenue streams are diversified across various product categories and geographic regions, with footwear accounting for the majority of net sales.
The company's future success will depend on its ability to adapt to changing consumer preferences and effectively manage marketing and inventory.