{"id":1662712,"date":"2022-09-28T14:54:41","date_gmt":"2022-09-28T18:54:41","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1662712"},"modified":"2022-09-28T14:54:55","modified_gmt":"2022-09-28T18:54:55","slug":"nike-sales-likely-to-suffer-as-inflation-hits-sneakerheads","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/nike-sales-likely-to-suffer-as-inflation-hits-sneakerheads\/","title":{"rendered":"Nike sales likely to suffer as inflation hits sneakerheads"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fnike-sales-likely-to-suffer-as-inflation-hits-sneakerheads%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1662712&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>By Mehr Bedi<\/p>\n<p>(Reuters) \u2013     Sneakerheads are thinking twice before splurging on the newest set of kicks as the rising cost of living takes a toll on consumer spending, setting the stage for a potential slowdown in sales for Nike Inc in coming months.<\/p>\n<div id=\"div-gpt-ad-1663871513696-art-1\">\n<\/div>\n<p>At least eight brokerages have cut their price targets on Nike in the two weeks ahead of the company\u2019s first-quarter results on Thursday as inflation-hit U.S. consumers increasingly scrimp on discretionary items, adding more pressure on the athletic gear maker that is reeling from a slowdown in China.<\/p>\n<p>The sneaker giant\u2019s hot-selling Jordan, a brand that has grown its annual revenue by nearly 42% over the past two years to $5.1 billion and sees its $200 sneakers sell out in minutes, is also currently experiencing a downturn in enthusiasm around new styles, according to Wedbush analysts.<\/p>\n<p>\u201cThis (slower sell through rates) is unusual for retro Jordan launches which usually sell out within a day, and might confirm signs of macro\/inflation pressure on sneaker buyers, or \u2018launch fatigue\u2019,\u201d Wedbush analyst Tom Nikic wrote in a note.<\/p>\n<p>Since the start of September, analysts have cut their full-year sales expectations for Nike to $49.85 billion from $50.34 billion. Some believe Nike will also lower its own current sales forecast on Thursday.  <\/p>\n<p>THE CONTEXT      <\/p>\n<p>Nike saw its fortunes grow during the pandemic as sweatpants and joggers became a more intrinsic part of everyday fashion, while demand for the company\u2019s running shoes and sportswear surged from people taking up more outdoor exercises.  <\/p>\n<p>However, the easing of COVID-19 restrictions has shifted some of that spending back to more formal and social occasion-based apparel, while overall demand takes a hit from decades-high inflation.  <\/p>\n<p>That comes as concerns grow about the pace of recovery in China where the government\u2019s Zero-COVID policy lockdowns dampen demand in the region, which accounts for about 17% of Nike\u2019s annual sales. <\/p>\n<p>Rival Adidas also slashed its full-year earnings target in July, citing a slower-than-expected recovery in China from pandemic restrictions.<\/p>\n<p>Still, some analysts are more bullish about Nike\u2019s business in North America, citing an improving supply chain and a better inventory position.<\/p>\n<p>\u201cNike products generally continue to sell through at high prices with fewer promotions in North America and Europe. The pricing data also suggests Nike\u2019s inventory levels are mostly well-controlled,\u201d UBS analyst Jay Sole said, citing UBS Evidence Lab pricing data.<\/p>\n<p>THE FUNDAMENTALS<\/p>\n<p>* First-quarter revenue estimates have declined to $12.27 billion from $12.32 billion since the start of September<\/p>\n<p>* Full-year earnings per share estimates have also fallen to $3.66 from $3.74, according to IBES data from Refinitiv   <\/p>\n<p>* The blue-chip stock is one of the worst Dow 30performers this year, down about 42%, compared with the index\u2019s18.6% fall.<\/p>\n<p>WALL STREET SENTIMENT<\/p>\n<p>* The current average analyst rating on NKE shares is \u201cbuy\u201d, with 24 rating it \u201cstrong buy\u201d or \u201cbuy\u201d, 10 rating it a \u201chold\u201d and two rating it a \u201csell\u201d or \u201cstrong sell\u201d.<\/p>\n<p>* The mean price target is $128.28, down from $166.67 at the start of January<\/p>\n<p> (Reporting by Mehr Bedi in Bengaluru; Editing by Anil D\u2019Silva)<\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/nike-sales-likely-to\/attachment\/file-photo-a-jogger-wearing-nike-shoes-runs-in-cambridge\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8R0XK-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8R0XK-BASEIMAGE\" \/><\/a><\/p>\n<p><a href=\"https:\/\/www.oann.com\/uncategorized\/nike-sales-likely-to\/attachment\/file-photo-woman-walks-past-a-nike-inc-store-at\/\"><img decoding=\"async\" src=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-content\/uploads\/2022\/09\/tagreuters.com2022binary_LYNXMPEI8R0X5-BASEIMAGE.jpg\" alt=\"tagreuters.com2022binary_LYNXMPEI8R0X5-BASEIMAGE\" \/><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Mehr Bedi (Reuters) \u2013 Sneakerheads are thinking twice before splurging on the newest set of kicks as the rising cost of living takes a toll on consumer spending, setting<\/p>\n","protected":false},"author":66,"featured_media":2315279,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"","fifu_image_alt":"","footnotes":""},"categories":[],"tags":[],"class_list":["post-1662712","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry"],"_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1662712","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/66"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1662712"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1662712\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2315279"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1662712"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1662712"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1662712"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}