Nike Inc. was downgraded on Tuesday to market perform from outperform at Cowen & Company based on concerns that share loss to Adidas AG and Under Armour Inc. could accelerate. Preference for Nike apparel has declined to 44% from 55%, according to the Cowen Consumer Tracker survey, while preference for Adidas and Under Armour is growing among 18-to-34 year old men and women. Analysts also believe promotions in North America and international inventory levels “appear elevated,” noting 25% discounts on Nike apparel at Dick’s Sporting Goods Inc. , Kohl’s Corp. and other retailers. “We see a high probability that Nike reduces second-half fiscal year 2017 guidance or guides third-quarter below consensus, and we view sell-side estimates (75% net buy rated) as too high into 2018,” the note said. Nike shares are down 1.1% in premarket trading, and down 17% for the year so far. The Dow Jones Industrials Average is up 10.3% for 2016 to date.
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