Nike (NYSE:NKE) received its fourth downgrade on Wall Street this year, with Jefferies analysts cutting the footwear giant’s rating from Buy to Hold and lowering the price target from $140 to $100.

The analysts cited increased risk for Nike, pointing to continued pressure on the wholesale channel and macroeconomic challenges in China. The findings from a Jefferies consumer survey also indicated that American consumers may reduce their spending in the near future, particularly on clothing and footwear.

The analysts noted that while retail inventory has improved overall, tight inventory management may persist through the end of the year, leading to fewer replenishment orders and putting pressure on Nike’s wholesale channel.

Despite Nike’s efforts to boost direct-to-consumer (DTC) sales, the current consumer climate could impede progress, potentially jeopardizing the company’s goal of achieving a high-teens operating margin by fiscal 2025.

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