Nike Slapped With Sell Rating as Trouble Runs Deeper Than Fading Jordan Magic — Barrons.com

What happened

Truist Securities downgraded Nike’s stock to Sell from Hold while keeping its $29 price target. The analysts cited slowing demand for sportswear and Jordan products, which generate over 60% of revenue, weaker running momentum, rising inventory, tougher comparisons after soccer-gear sales rose during the World Cup, and deteriorating sales in China.

Confirmed

Global impact / market context

Weakness in Nike’s largest revenue lines could limit its recovery: unsold or discounted products can require price cuts, reducing revenue earned per item, while piling inventory ties up cash. Slower running sales and weaker China demand add pressure as Nike faces tougher comparisons in upcoming quarters.

Analyst inference

The article describes pressure across several parts of Nike’s business, rather than a problem limited to Jordan products: sportswear and Jordan account for over 60% of revenue, running momentum has slowed, and China sales are deteriorating. Truist’s downgrade signals reduced confidence in the recovery plan, not a reported market-price move.

Analyst inference

What to watch

1. Watch for updates on sportswear and Jordan demand, including whether unsold retros continue to sell below retail and whether these lines regain momentum. Analyst inference
2. Track inventory and running sales in upcoming quarters; the article says inventory is piling up and running momentum has slowed, but gives no forecasted totals. Confirmed
3. Look for reported China sales and soccer-gear results after the World Cup-driven sales spike, since weaker demand or tougher comparisons could weigh on revenue. Analyst inference

Evidence

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