Brean Capital analyst Eric Tracy downgraded Nike (NKE) to Neutral following the company's Q1 results last night. The footwear maker is now in the midst of an "innovation reset," Tracy tells investors in a research note.

With decelerating futures growth in North America and a consumer shift towards less technical, more lifestyle product, the analyst sees limited near-term upside catalysts for Nike. The shares are down 3%, or $1.69, to $53.65 in pre-market trading.