Nike's (NKE) sales growth recovery could be taking longer than expected and in a "non-linear" way, UBS Securities said in a Wednesday note.
Ahead of the company's release of its fiscal Q2 results on Dec. 18, UBS said its channel checks indicated weaker direct-to-consumer sales in the US and in Europe during the quarter through November. Sales trends in China also continue to be pressured, the investment firm added.
For fiscal Q3, UBS said it expects Nike to guide for a low-single digit percentage decline in sales.
UBS has a neutral rating and $71 price target on Nike.
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