Footwear Stocks Plummet as Inflation Weighs on Sales Growth

Four major footwear and athletic apparel companies - Nike (NKE), Lululemon Athletica (LULU), Deckers (DECK), and On Holding (ONON) - have seen their stock prices plummet in recent years due to a combination of factors.

Sales growth has slowed significantly as inflation weighs on discretionary spending, with persistent high prices making consumers more cautious about spending on non-essential items.

Tariffs imposed by the U.S. government have also added to the sector's woes, increasing costs for companies that import materials and products.

Among these four companies, Nike has taken the biggest hit, falling over 75% from its pandemic-era peak.

New CEO Elliott Hill has been in charge for nearly two years, but his turnaround efforts have yet to yield results, and the stock continues to slump.