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Athleisure seen in downtrend

Seeking Alpha logo Seeking Alpha 8/16/2017 Clark Schultz

Quo Vadis Capital founder John Zolidis isn't blaming Amazon for the weak guidance issued by Dick's Sporting Goods (NYSE:DKS) and the resulting 23% slide in share price.

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"The largest issue, in our opinion, is the end of the fashion athletic trend or 'ath-leisure' as it has been called. This trend, driven by Under Armour (NYSE:UAA) and Nike (NYSE:NKE) as well as Lululemon (NASDAQ:LULU) has been the most important contributor to DKS' same-store sales growth over the last several years, by our estimates. This trend is now officially over, in our opinion."

Zolidis says the death of athleisure has been confirmed in Nike futures orders growth, Under Armour results, Big Five (NASDAQ:BGFV) sales numbers and Hibbett Sports (NASDAQ:HIBB) earnings. "Our advice to investors is to continue to avoid the space," concludes Zolidis.

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