Nike sales likely to suffer

At least eight brokerage firms lowered their price targets for Nike two weeks before the company's first-quarter results were released on Thursday as inflation-hit U.S. consumers are increasingly saving on discretionary items, increasing pressure on the sportswear maker, which is recovering from the crisis.

Since the beginning of September, analysts have cut their full-year Nike sales forecasts from $50.34 billion to $49.85 billion. Some analysts believe that Nike might also lower its current sales forecast.

Nike's success has grown during the pandemic as sportswear has become more of an everyday fashion staple, and demand for the company's sneakers and activewear has surged as people have become more active in the outdoors.

Nevertheless, the easing of COVID-19 restrictions has seen some of that spending revert to more formal and social occasions, while overall demand has suffered from decades of high inflation.