1033 ET - Nike is returning to its roots, as shown in its third-quarter results, which were slightly better than expected, Jefferies analysts say in a research note. Still, the sportswear brand's road to recovery by clearing out inventory isn't immediate, and could weigh on Foot Locker's near-term performance due to its discounts, the analysts say. "Despite Nike's headwinds, we are encouraged by strong growth from the rest of Foot Locker's portfolio (such as Adidas, New Balance, Asics, On, Hoka, UGG, and Timberland), but remain hold rated due to Nike's large penetration of total Foot Locker sales," the analysts add. Nike shares drop 6.8%, with Foot Locker trading down 1.7%. (sabela.ojea@wsj.com; @sabelaojeaguix)
(END) Dow Jones Newswires
March 21, 2025 10:33 ET (14:33 GMT)
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