Nike (NKE), like many large retail brands, is in the midst of the back-to-school-shopping season. With consumers growing more discerning in their spending, can Nike keep up with the growing competition and alternative options?

Stifel managing director and equity research analyst Jim Duffy joins Catalysts to break down Nike's back-to-school market share and how the athletic brand will operate moving forward.

"The good news is that the marketplace is generally healthy. There's a lot of newness in the assortment that consumers are responding to," Duffy says. "The bad news for Nike, however, is there are some other brands that are bringing newness and getting momentum. Nike's share of popularity fell from 88% last year to 61% this year, so quite a steep decline on a year-to-year basis."

Duffy elaborates on his Hold rating and $79 per share price target on Nike: "The reason for adjusting the price target lower was based on these checks and the momentum we're seeing from competitors. We think a turnaround is going to take longer to execute than is currently reflected in the consensus estimates. The path to recovery here, newness has to play an important role in that."

For more expert insight and the latest market action, click here to watch this full episode of Catalysts.

This post was written by Nicholas Jacobino