"The company will have to significantly reevaluate its US marketing strategy, including finding a common ground to improve its relationship with Foot Locker," Wells Fargo Securities analyst John Shanley said in a report. Shanley, who has a "hold" rating on Nike, trimmed this year's profit estimate to US$3.10 from US$3.15.
Merrill Lynch analyst Virginia Genereux lowered her rating on Nike to "neutral" from "buy" and reduced this year's profit estimate by US$0.05 to US$3.18.
"Although it's premature to say the Foot Locker relationship is getting materially worse, it doesn't appear to be getting better, raising the specter of more negative news," Merrill's Genereux said in a report.
Genereux reduced her rating on Foot Locker, the largest US athletic shoe retailer, to "neutral" from "buy," saying the retailer may not get the new products tied to Nike's James, Bryant and Anthony.
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