Nike (NKE) Stock Drops as Key Retail Partner Dick’s Flags Weak Footwear Demand
TLDR
- Nike stock fell 2.4% in pre-market trading after wholesale partner Dick’s Sporting Goods missed Q2 estimates and slashed its full-year outlook.
- Dick’s cut its FY2027 EPS guidance to $11-$12, well below the $14.20 analyst consensus.
- Dick’s pointed to weak new product launches and promotional conditions in athletic footwear as key reasons.
- Stifel and RBC Capital both maintained Hold/Sector Perform ratings on Nike with $45 price targets.
- Nike is trading near the lower end of its 52-week range of $38.86 to $79.51.
Nike stock dropped 2.4% in pre-market trading on Tuesday after Dick’s Sporting Goods reported a disappointing second quarter and dramatically reduced its full-year earnings outlook, pointing directly at weakness in the athletic footwear and apparel market.
Nike opened at $40.73, sitting close to the lower end of its 52-week range of $38.86 to $79.51.
Dick’s posted Q2 earnings per share of $3.53, missing the $3.78 estimate. Revenue came in at $5.59 billion, short of the $5.65 billion Wall Street expected.
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