Athletic Apparel Stocks Plunge Amid Industry-Wide Decline

The year 2026 has been particularly harsh on the athletic apparel industry. Nike's stock price has plummeted by 38% so far, while Dick's Sporting Goods and Lululemon have seen declines of 29% and 52%, respectively.

Despite retail as a whole experiencing growth, with the SPDR S&P Retail ETF (XRT) up 3% year-to-date, athletic apparel stocks are struggling. The industry's decline is significant enough to be considered a category story rather than a market-wide issue.

Nike's slide began in the spring when the company reset its guidance, pushing shares to multi-year lows. CEO Elliott Hill has been working on his 'Win Now' turnaround plan, but investors have not been patient, and the stock price reflects this.

Dick's Sporting Goods is also facing challenges, with its legacy business holding up in Q2 FY2027, but the Foot Locker acquisition dragging down non-GAAP EPS. Lululemon, a premium apparel brand, has seen comparable sales decline by 9% globally and 12% in the Americas.

While all three companies received IEEPA tariff refunds this year, boosting reported profitability, underlying trends look softer across the group.