1201 ET - Nike's stock may still not have hit its bottom, as questions about its future performance linger, UBS analysts say. The analysts Nike's sales guidance reflects weak demand in a marketplace with excess inventory, where pulling back on promotions could hurt revenue. Nike's reset in its sportswear and Jordan businesses could also take a while to show results, as trend cycles and a lack of brand momentum are weighing on the divisions, the analysts say. Nike's margins are becoming more exposed because the company is on its third big cost-savings initiative, the analysts say. That means any drop in sales could hurt margins more than Wall Street expects, they say.
At the request of the copyright holder, you need to log in to view this content
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.