Nike and Other Retail Stocks Downgraded as Jefferies Warns of Spending Slowdown
September 26, 2023
Jefferies’ research warns that the resumption of student loan payments in October could lead to reduced spending at retailers, particularly impacting apparel and footwear categories. Their survey of over 600 U.S. consumers with outstanding student debt revealed nearly 90% were “somewhat concerned” about meeting monthly expenses, with 50% expressing “very concerned” sentiments. This shift in consumer spending patterns could create headwinds for companies like Nike, Urban Outfitters, and Foot Locker, prompting Jefferies to downgrade their stocks from Buy to Hold and reduce their price targets.
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