London-listed shares in JD Sports (NASDAQ:JD) fell on Wednesday after analysts at Barclays slashed their rating of the athletic apparel retailer.
In a note downgrading the company to “Underweight”, the Barclays analysts said the cut stemmed from uncertainty around the most recent outlook and quarterly results from Nike (NYSE:NKE). They noted that roughly half of JD Sports’ revenue is exposed to the U.S.-based maker of footwear lines like Air Jordans and Air Force 1.
Last week, Nike said it expects to report a mid-single-digit percentage decline in annual sales, disappointing analysts’ estimates for a rise of 0.91%, according to LSEG data cited by Reuters. Demand has been dented by competition from brands like Deckers’ Hoka and On, while a direct-to-consumer drive in North America has so far proved largely unsuccessful.
Fourth-quarter revenue at Nike also decreased by 1.7% to $12.61 billion, below projections of $12.84 billion.
Nike’s stock price plunged after the announcement and has now shed more than a quarter of their value year-to-date.
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