07:38 AM EDT, 10/02/2024 (MT Newswires) -- Nike's ( NKE ) weaker-than-expected trends and depressed expectations make it difficult to foresee any quick turnaround, Truist said in a note to investors on Wednesday.

"With another miss vs depressed expectations, Nike's ( NKE ) visibility into its own business appears lower than we previously anticipated," the analysts said.

Nike ( NKE ) on Tuesday reported fiscal Q1 revenue of $11.59 billion for the quarter ended Aug. 31, down from $12.94 billion a year earlier and missing the analyst consensus of $11.65 billion.

While some investors expect incoming CEO Elliot Hill to begin showing fruits of a turnaround effort in spring 2026, Truist said "that timeline may prove optimistic." In particular, lighter wholesale orders for spring 2025 make Truist more cautious on near-term turnaround opportunities.

The company is losing market share to upstart competitors such as On Holding (ONON) and Deckers' (DECK) Hoka brands in what Truist described as "a key driver of Nike's ( NKE ) recent weakness."

Truist lowered its price target for Nike ( NKE ) to $83 from $85 and maintained a hold rating on the stock.

Nike ( NKE ) shares were more than 7% lower in premarket trading.

Price: 84.14, Change: -4.99, Percent Change: -5.60