Analyst Says Weak Retail Market Will Hurt Nike

PORTLAND, Ore. (AP) — Sterne Agee analyst Sam Poser on Tuesday reiterated a "sell" rating on Nike on concerns about the continued weak retail environment.

Major retailers like Foot Locker Inc. and Hibbett Sports Inc. recently reported that they anticpate slower sales heading into 2010.

Nike has seen its future orders, which measure customer orders anticipated to be delivered in a coming season, slip for several quarters. Poser said Nike will likely see future orders fall more than 5 percent when it reports its results in September.

Nike, which is the world's largest athletic shoe and apparel company, has seen demand slow as the recession takes its toll on consumer spending. And Poser said Nike is having to take some shoes back from retailers and offer more of the few items that are moving, given the softness in the market. This near-term fix could hurt the brand over time, Poser said.

He also noted that Beaverton-based Nike may also see sales at its company-owned retail sites fall.

Shares of Nike fell 29 cents to $55.71 in early afternoon trading Tuesday.