Jefferies analyst Randal Konik says Nike’s fiscal Q1 earnings “beat a low-bar” as the company discussed there are a lot of changes that need to take place while the market awaits CEO elect Elliott Hill’s strategic plans. However, market share losses are likely to continue and gross margin gains will soften with promos moving higher and the consumer backdrop becoming more challenged, so “the EPS deck is no where near being cleared” and the firm “would not chase this stock.” Jefferies maintains a Hold rating and $85 price target on Nike shares, which are down $6.23, or 7%, to $82.90 in pre-market trading.
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