Nike's (NKE) Jordan and Sportswear retro launches continue to face muted demand, with some shoes selling at steep discounts to retail prices in the resale market, highlighting ongoing brand pressure, Truist Securities said in a note Wednesday.
The firm said visibility into a recovery remains limited ahead of Nike's Investor Day. Truist expects investors to seek clearer evidence of improving demand and full-price sell-throughs before giving management credit for another product-led turnaround.
Truist said Nike's management has repeatedly pushed out recovery timelines, most recently extending expectations for a recovery into fiscal 2028.
The brokerage sees downside risks from continued Sportswear pressure, tougher comparisons in Performance and Nike's lofty valuation.
Truist reiterated its sell rating and maintained a $29 price target on Nike.
The company's shares were down nearly 1% in Wednesday afternoon trading.
Price: 38.32, Change: -0.35, Percent Change: -0.92
