😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

JD Sports shares slip after Barclays analysts cut outlook on Nike uncertainty

Published 07/03/2024, 04:48 AM
© Reuters.

Investing.com -- London-listed shares in JD (NASDAQ:JD) Sports (LON:JD) fell on Wednesday after analysts at Barclays slashed their rating of the athletic apparel retailer.

In a note downgrading the company to "Underweight", the Barclays analysts said the cut stemmed from uncertainty around the most recent outlook and quarterly results from Nike (NYSE:NKE). They noted that roughly half of JD Sports' revenue is exposed to the U.S.-based maker of footwear lines like Air Jordans and Air Force 1.

Last week, Nike said it expects to report a mid-single-digit percentage decline in annual sales, disappointing analysts' estimates for a rise of 0.91%, according to LSEG data cited by Reuters. Demand has been dented by competition from brands like Deckers' Hoka and On, while a direct-to-consumer drive in North America has so far proved largely unsuccessful.

Fourth-quarter revenue at Nike also decreased by 1.7% to $12.61 billion, below projections of $12.84 billion.

Nike's stock price plunged after the announcement and has now shed more than a quarter of their value year-to-date.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.