Yahoo Finance's Reggie Wade joined Yahoo Finance Live to break down the latest moves from Nike.

Video Transcript

SEANA SMITH: We want to talk about another stock here that's on our radar at Yahoo Finance, Nike. Now it has been an underperformer since the start of the year. Shares off just around 10% since January 1st. Reggie Wade is closely following this stock for us. And Reggie, when you take a look at some of the commentary that's come out of Wall Street, Citi earlier this week drawing attention to a potential slowdown in China, saying that this could be a headwind here for Nike going forward.

REGGIE WADE: That's right, Seana. Not just Citigroup. It's UBS. They've lowered their price target on Nike today. It was previously $183. It's now down to $175. But unlike Citigroup, they maintain their buy rating because they believe that these issues will not be long lasting. Nike has criticized China for alleged human rights violations in the Xinjiang province in the north. And this is what this stems around. So the Chinese government has called for boycotts. And it looks like boycotts has happened across the country to China.

But many people still believe that the brand is strong enough to weather this storm. UBS points to June being a big shopping month in China. And they expect that the numbers will rebound there in terms of sales. So we'll just have to see. As they say, sometimes the light at the end of the tunnel is an oncoming train. And we'll see what it is for Nike.

ADAM SHAPIRO: Can we move to the topic of sustainability? Because everyone is on that train, Reggie. And Nike's all-- you showed us those sneakers not too long ago that are sustainable, made from recycled products. What more do we know?

REGGIE WADE: Yes, and it's not just Nike. So many sneaker companies, big, small, and medium, again on the sustainability train, because they're seeing that the consumer is demanding this. First, it was a novelty, but consumers really want something that's sustainable. They're concerned about helping the planet. And Nike and a couple of other companies have come out with a few items.

I have here the Nike swimsuit. This is made out of sustainable materials. This retails for $80. I think this is the first time I've ever held up a swimsuit on Yahoo Finance. I'm usually a sneaker guy. I hope I'm holding it up right. But it's made out of sustainable material. And it feels like it would be comfortable. But I wouldn't know anything about that.

Now something I do know more about, the sneakers. Look at this. This is something really exciting. We have the Nike Air Zoom SuperRep 2. And that stands for next to nature. This is made with at least 20% sustainable materials. And the cool thing about this shoe is that it uses Nike's [? grind ?] material. If you look here, you can actually see little specks. What these are, are fibers, cottons that are gathered from Nike's factory floor. And they're put into the shoes to reuse. So runners out there, this may be something that you want to take a look at if you want something that will help you run and it's sustainable.

We also have Saucony back with 100% sustainable shoe. This shoe retails for $130. It's called the Natural Jazz Court RFG sneaker, 100% natural. And this shoe actually is more casual than a lot of the stuff that we've seen out of the brand before. And finally, I have-- and this is something I thought I would never say-- a sneaker made out of grapes. Yes, this sneaker is made out of grape skin, grape stems, grape leaves. And this is the [INAUDIBLE]. And this retails a little bit pricey, $245. But it is for the consumer that wants something classic-looking, but also something that's good for the environment. So we see no matter the size of the company, everyone's getting in on the sustainability game.

SEANA SMITH: Reggie, you said grapes? I wonder how many--

REGGIE WADE: Yes, grapes.

SEANA SMITH: --grapes it took just to make one of those shoes. Wow, that is [INAUDIBLE].

REGGIE WADE: This, in my size, would probably be a little more. But this, I don't know. I have to get back to you on that, Seana.

SEANA SMITH: All right, Reggie Wade, thanks so much for bringing that to us.