Nike lowers forecasts. Shares fall significantly today before the market opens.

I don't need to introduce Nike $NKE, maybe all of us have something from them at home. They didn't please their shareholders much today and are writing off as much as 12% before the market opens.

Other sportswear companies are also falling with this announcement after weak consumer spending forced the Air Jordan 1 shoe maker to cut its annual sales forecast and signal a change in its profit-over-sales strategy. Shares of rivals Adidas and Puma down about 5% each, with Lululemon down 2% and Under Armour down about 6%.

The company on Thursday also unveiled a $2 billion cost-savings plan and said it was taking a "more cautious approach" to planning for the rest of the year, blaming the forecast cut on weakness in its online business and increased promotions.

Some analysts said Nike $NKE could also lag in innovation and lose share to other brands such as Lululemon and Deckers Outdoor's Hoka.

"Nike needs increased and improved marketing investment while Hoka, On and Lululemon continue to expand with increased customer acquisition and retention," TD Cowen analysts said after downgrading the stock to "market perform" from "outperform."

Nike also revealed plans to simplify its product lineup, increase automation and introduce fresher styles to attract consumers.

"While we think this (cost-savings plan) is a positive shift, it will take some time to see a proliferation of new products and innovation, and soft macro will continue to pressure results in the meantime," said Abbie Zvejnieks of Piper Sandler. The broker lowered its target price to $107 from $112.

I've had this company in my portfolio for as long as I've been investing, but so far always only briefly, about a couple of weeks, so I've been taking it as a sort of "longer" trade. I want to gradually build a dividend portfolio so the company doesn't fit into it that much, however, picking up these situations, dips and going in for growth may pay off. I personally trust this brand, even though there are plenty of them on the market. 😊 What about you?