Jefferies says Foot Locker read across supports ‘guarded view’ of Nike

After Foot Locker (FL) reported Q3 results below expectations and lowered its fiscal year guidance, with management highlighting weaker consumer trends following back-to-school and an elevated promotional environment, Jefferies said the firm finds these results concerning for Nike (NKE) as the company continues to see elevated promotions while ceding shelf space to competitors. Competition is more severe than in prior years and promos remain elevated, adds the analyst, who reiterates a Hold rating and $85 price target on Nike shares and says Foot Locker’s report supports the firm’s “guarded view.”