Truist Cuts Nike to Sell as Jordan Demand and China Outlook Weaken

Truist Securities lowered its rating on Nike to Sell from Hold Thursday, keeping its $29 price target as Truist Securities retail analyst Joseph Civello pointed to weakening Jordan demand, China's outlook and Nike's valuation.

Civello said Nike shares rose 19% in about a month while the S&P 500 was flat. He attributed the gain to sector rotation rather than improving company fundamentals. Civello valued Nike at about 27 times earnings projected two years ahead, versus roughly 15 times for its peers.

Civello said product pullbacks had broadened beyond Air Jordan 1, Air Force 1 and Dunks to include Jordan and Sportswear. Those businesses account for more than 60% of Nike's business, he said. He also pointed to five of seven recent Nike and Jordan launches selling below retail.

The Air Jordan 6 “White Infrared” was scheduled to launch Nov. 7. Nike had outlined plans to reduce the volume and frequency of some Jordan retro releases after Jordan Brand recorded a mid-teens percentage decline in revenue in fiscal 2027's first quarter, as covered in Nike's Jordan retro release plan.

Civello said visibility into when China might reach a bottom was limited. Nike's outlook called for conditions in Greater China to worsen through the year after Greater China sales fell 26% on a currency-neutral basis in the first quarter. The company's digital cleanup was expected to take multiple seasons, he said.

Civello also pointed to intensifying competition from local and other Western brands in China. The scheduled Nov. 7 Air Jordan 6 launch is the next specific release cited in the analyst's assessment of pressure on Nike's product demand.