Nike Faces Record Streak Of Losses As China Concerns Linger
Portfolio Pulse from Piero Cingari
Nike Inc. (NYSE:NKE) is facing its longest losing streak since December 1980, with shares falling for the ninth consecutive session. Concerns about demand in China and rising inventories are contributing to the slump, which has wiped out $14 billion of market cap in the last two weeks. Nike's year-to-date decline of 14% contrasts with the 29% gain of the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY). Wall Street analysts have lowered their one-year average price target for Nike from $137 to $129. Foot Locker Inc. (NYSE:FL), which sources 65% of its athletic merchandise from Nike, is also being closely watched.

August 22, 2023 | 8:34 pm
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POSITIVE IMPACT
The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) has recorded a 29% gain year-to-date, contrasting with Nike's decline.
The Consumer Discretionary Select Sector SPDR Fund has recorded a significant gain this year, contrasting with Nike's decline. This indicates a positive short-term impact for the fund.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEUTRAL IMPACT
Foot Locker, which sources 65% of its athletic merchandise from Nike, is being closely watched as its performance could indicate Nike's future trajectory.
Foot Locker's performance is being closely watched as it could indicate Nike's future trajectory. The company sources a significant portion of its merchandise from Nike, indicating a neutral short-term impact.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 70
NEGATIVE IMPACT
Nike's shares are on a downward trend due to concerns about demand in China and rising inventories. Analysts have lowered their one-year average price target for the company.
Nike's shares are falling due to concerns about demand in China and rising inventories. This has led analysts to lower their price target for the company, indicating a negative short-term impact.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100