Nike checks show ongoing pressure in Q2, says Raymond James

Raymond James lowered estimates for Nike (NKE) and models the company’s fiscal Q2 earnings, revenue, and margins modestly below consensus. Nike spent much of Q2 working through legacy inventory and Raymond James does not have high-confidence that new innovation is scaling rapidly enough to drive upside surprise from a growth perspective, the analyst tells investors in a research note. The firm’s channel checks across Google Trends, mobile app data, promotional comparisons and read-throughs from Foot Locker “each point to ongoing challenges.” Raymond James believes Nike remains a “show-me story” and it finds it “too early to call the turnaround.”