Investors may want to stay away from Nike as near-term headwinds weigh on the sports retailer, according to Jefferies.
"We see incremental risk ahead for NKE as the wholesale channel is likely to remain pressured and growth in China faces macro headwinds," Konik wrote in a Monday note.
"Meanwhile, our consumer survey results indicate that US consumers are likely to reduce spending ahead, with apparel and footwear being the most likely areas of pullback."
Jefferies also pointed to a slowdown in U.S. consumer spending that could lead to further headwinds for Nike.
Nike's stock has struggled this year, losing more than 22%, making it the second worst-performing Dow Jones Industrial Average member.
Persons:
Randal Konik, Konik, Jefferies, Michael Bloom
Organizations:
Nike, Jefferies, NKE, Dow Jones Industrial
Locations:
China