Nike Inc (NKE)

Lululemon Athletica Inc. is expected to report a significant decline in Q2 earnings this Thursday, September 3, with some analysts anticipating further reductions in full-year guidance due to weakening U.S. sales. Incoming CEO Heidi O’Neill, set to take over on September 8, will not address investors until Q3 results, leaving the company's turnaround plans awaited. Analysts express concerns about ongoing U.S. sales pressures, the China market, and the need for a strategic reset under new leadership.

lululemon Athletica Inc. (LULU) is expected to report declines in both top and bottom lines for Q2 fiscal 2026, with revenue growth projected at 2.3% and EPS expected to drop by 42.3%. While the company has a history of earnings surprises and strong international growth, especially in Mainland China, it faces significant headwinds from softening demand in North America and margin pressures due to higher markdowns and increased SG&A expenses. The Zacks model does not predict an earnings beat for LULU this quarter.

Dick's Sporting Goods (DKS) shares dropped about 25% after the retailer cut its full-year profit outlook and reported a $31.9 million segment loss at Foot Locker in the second quarter. The company now expects a $40 million to $80 million loss from Foot Locker, a significant reversal from its earlier projection of a $110 million to $150 million profit. This downturn is attributed to an increasingly promotional market and Foot Locker's reliance on sneaker launches that underperformed expectations, raising concerns primarily for the sneaker market rather than the broader economy.

Nike Inc. shares are declining following Dick's Sporting Goods' worse-than-expected Q2 results, which cited a challenging environment for athletic footwear and apparel. Dick's cut its full-year profit expectations, largely due to a reversal at Foot Locker, a company it acquired less than a year prior. This downturn in the sneaker market raises concerns for broader athletic brands like Nike, whose stock is already in a long-term downtrend and trading near its 52-week low.

This article details five significant analyst downgrades that occurred on Wednesday, including a Nike analyst revising their stance from "Buy" to "Hold." Other companies affected by downgrades include Edison International, GoDaddy Inc, EPAM Systems Inc, and Intuit Inc, with several price targets also being cut. The article provides the analysts' names, their new ratings, and the previous day's closing prices for each stock.