Goldman Sachs Downgrades Nike Due To ‘Excess Inventory’ At Retailers

The lackluster year for Nike shareholders isn’t going to turnaround anytime soon, according to Goldman Sachs. The firm lowered its rating for Nike shares to neutral from buy, citing an intense promotional environment for the company’s products. The call sent the stock down 1.2 percent at Thursday’s market open. “The drivers of domestic pressure will take some time to work through, exacerbated by persistent excess inventory sitting at Nike’s brick and mortar retail partners and the high visibility this markdown product gets as it is funneled online via amazon.com and other platforms,” analyst Lindsay Drucker Mann wrote in a note to clients Thursday. “Near-term dynamics are challenging … with an inventory overhang in the US hampering Nike’s ability to ‘reset’ the market.” Read more at CNBC.