Nike Inc.’s stock fell nearly 3% Wednesday to mark a 10th straight day of declines, weighed down by disappointing earnings from Foot Locker Inc. that came after an equally soft performance from Dick’s Sporting Goods Inc. a day earlier.
Nike’s stock
NKE,
is down for 11 of the last 12 days, its longest losing streak on record, based on data provided by Dow Jones Market Data’s team that goes back to Dec. 2, 1980.
The stock closed at $98.75, its lowest close since Nov. 9, 2022, when it closed at $92.10.
Foot Locker
FL,
shocked investors by swinging to a loss, missing on sales and lowering its guidance. The company also said it would suspend its quarterly dividend to conserve cash.
For more, see: Foot Locker’s stock tumbles 34% as company suspends dividend after swinging to a loss
The news came a day after Dick’s Sporting Goods Inc.
DKS,
also published weak earnings and highlighted a big spike in shoplifting.
Jefferies said Nike could feel a negative effect from Foot Locker’s subdued sales outlook and efforts to draw down inventory heading into the holiday season. Foot Locker is already actively working to reduce its reliance on Nike and is aiming to get to the point where non-Nike sales make up more than 40% of its sales by fiscal 2026.
Nike still accounted for about 64% of Foot Locker’s second-quarter sales, analysts led by Randal Konik said in a note to clients.
“To this end, we believe Nike products helped propel the Foot Locker banner’s comps above the chain average in the second quarter as the company prioritized this brand for key launches and constrained supply of Nike products during the reset,” the analysts wrote. “This suggests demand for Nike products was relatively healthy in Foot Locker’s fiscal second quarter, in our view.”
Overall, Jefferies, which has a buy rating on Nike’s stock, remains bullish for the company.
“We continue to believe NKE is best in class and is likely to drive ongoing share gains ahead,” said the note.
Most analysts are still bullish on Nike. Among 28 analysts that have published ratings on FactSet, 20 gave the stock a buy rating, while two rated it a sell and six a hold.
Nike’s stock has fallen 16% in the year to date, while the S&P 500
SPX
has gained 14%.
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This story originally appeared on Marketwatch
