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The footwear sector is reeling after Nike’s (NYSE:NKE) earnings report raised concerns about global demand. Nike (NKE) warned that sales will decline 10% in its current quarter due to uneven consumer trends and will be down at a mid single-digit clip for the full year. “Nike’s 4Q report indicated its fundamental trends are much worse than we realized. Our key conclusion is there will be no quick rebound for Nike’s earnings,” highlighted analyst Jay Sole about the report.
Retailer Foot Locker (NYSE:FL) fell 5.68% in premarket trading following the Nike (NKE) report, while Dick’s Sporting Goods (DKS) was down 1.05%. Footwear stocks also felt the heat from the Nike (NKE) earnings dud. Under Armour (NYSE:UA) (UAA) shed 2.77%, Crocs (CROX) dipped 1.85%, On Holding AG (NYSE:ONON) was 3.13% lower, Deckers Outdoor Corporation (DECK) dropped 1.48%, and Skechers U.S.A. (SKX) fell 3.75%. Lululemon (LULU) was off 1.85% in the early session, while Adidas AG (OTCQX:ADDYY) dipped 0.80%. Those declines pale in comparison to the 14.65% collapse for Nike (NKE).
The ETFs with the largest exposure to Nike (NKE) include the Neuberger Berman Next Generation Connected Consumer ETF (NBCC), the Roundhill S&P Global Luxury ETF (LUXX), and the Consumer Discretionary Select Sector SPDR Fund ETF (XLY).