Truist Downgrades Nike to Hold Amid Growing Concerns Over Turnaround

Nike (NKE) shares took a hit on Wednesday after Truist Securities downgraded the athletic apparel giant to Hold from Buy. The move comes as Dick's Sporting Goods (DKS) reported disappointing earnings, with shares plummeting nearly 31% on Tuesday.

The downgrade was led by analyst Joseph Civello, who cited renewed uncertainty about Nike's turnaround trajectory and a decline in 'brand heat.' Civello pointed to two key pressures: legacy silhouettes no longer resonating with consumers and second-quarter launches underperforming expectations.

Civello also downgraded Dick's to Hold from Buy and slashed his target on that stock to $135 from $270. The analyst noted that the interconnected nature of the two companies' businesses amplifies concern, as Dick's 2025 acquisition of Foot Locker increased its Nike sales exposure to roughly 35% to 40% of merchandise purchases.