Nike faces risks from consumer squeeze and China, Jefferies says
Bloomberg
Nike
Pointing to a recent in-house survey, analyst Randal Konik noted that nearly 90% of the 600 respondents with outstanding student loan debt were somewhat worried about being able to meet all of their monthly expenses.
“Apparel, footwear, accessories, restaurants, and big-ticket items are likely to see the biggest pullbacks in spending,” he wrote in a research report, downgrading his ratings on Nike, Foot LockerUrban Outfitters
The return of student loan payments in October is seen squeezing consumers in the US, with a report by Oxford Economics estimating that this could dent spending by as much as $9 billion each month. Nike shares have fallen 11% this month alone.
Konik warned that China is another headwind as sales trends in the region are likely to be choppy.
Separately, Morgan StanleyWilson
