In an update to its Softlines & Internet Retail stock coverage, KeyBanc Capital Markets downgraded its rating on Crocs due to weaker demand and heightened competition, while trimming its price targets on Nike and On Holdings, largely due to each stock’s recent underperformance.

In lowering its rating on Crocs to “Sector Weight” from “Overweight,” Ashley Owens, KeyBanc’s lead analyst in the space, wrote, “The stock has faced pressure due to a deliberate pullback in promos, tighter wholesale receipts in NA [North America], a choiceful US consumer and increased competition in the sub $100 category. We acknowledge that international remains an opportunity for growth and cost savings should take hold in 2026. We believe visibility on demand trends remain limited at this time. Though valuation is inexpensive, we see limited near-term catalysts and prefer to remain cautious until easier 2H compares and clearer signs pointing towards an inflection emerge.”

Owens continues to have an “Overweight” rating on Nike but lowered her price target from $90 to $75 as the company’s slow recovery weighs on shares. Nike’s shares closed Thursday, January 29, at $62.60. The analyst wrote, “Initial turnaround signs are showing but will take time to materialize; estimates are unchanged, but PT [price target] comes down in the interim.”

On’s price target was reduced from $68 to $58 due to the stock’s underperformance, but Owens still has an “Overweight” rating on the Swiss running brand and ranks it among her favorite stocks in the space. On’s shares closed Friday, January 30, at $45.02.

Owens wrote, “ONON remains a favored name due to it having one of the strongest growth setups in our coverage, which we believe is supported by further momentum in international, another strong pipeline, pricing elasticity, and ongoing brand heat, driving growth through newness rather than promotional activity. These fundamentals position it well in the current environment where we believe that execution and product innovation, especially in a highly competitive performance running market, will continue to matter.”

Among other stocks under KeyBanc’s coverage, Owens, in particular, likes The RealReal, the online resale marketplace. She raised her price target on the company from $16 to $20 due to recent operational improvements and its strong foothold in luxury resale. Owens wrote in the note, “We believe the company continues to position itself well as the leader in luxury resale and believe that ongoing affordability and luxury pricing fatigue will help in driving broader resale adoption.”

Owens also raised her price target on Revolve Group from $25 to $35, citing increased confidence in the online fashion retailer’s tariff mitigation efforts, profitability improvements, and ongoing assortment diversification.

Other stocks under KeyBanc’s coverage that Owens has an “Overweight” rating on include Boot Barn Holdings, Wolverine World Wide, G-III Apparel Group, Ltd., and Brilliant Earth Group. She has “Sector Weight” ratings on Caleres, Deckers Outdoor Corp. (a.k.a. Brands Holding Corp.), Figs, Lululemon Athletica, Oxford Industries, and Etsy.

“After a choppy 2025, we expect a better year ahead for the softlines and internet retail groups,” Owens wrote.

Owens said that while the holiday season was likely in line with or above expectations, as evidenced by commentary and pre-announcements from those presenting at the ICR Conference in mid-January, she sees potential for consumer spending to improve in 2026 but will remain “selective” in her stock picks.

“Growth comparisons are mixed, placing greater emphasis on execution, newness, and pricing discipline rather than easy laps,” Owens wrote. “Further, macro uncertainty persists, and the consumer has remained selective in its purchasing, but a stronger refund season has the potential to provide support to discretionary spending in the first half of the year, modestly improving the outlook NT [near-term] and skewing the setup a bit more constructive relative to 2025.”

Image courtesy Crocs