On Holds Steady Amid Sector Decline

Four top footwear and athletic apparel stocks have plummeted in recent months due to slowing sales growth, persistent inflation, and trade headwinds. The four stocks - Nike (NKE), Lululemon Athletica (LULU), Deckers (DECK), and On Holding (ONON) - are all down more than 50% from their all-time highs.

Nike's collapse has been the most painful, with the stock down over 75% from its pandemic-era peak. The company's former CEO John Donahoe was criticized for overemphasizing direct-to-consumer sales and neglecting wholesale business, while new CEO Elliott Hill has yet to turn things around.

Lululemon has also struggled, facing increased competition, lackluster styles in some areas, and tariffs. However, the company is introducing a new CEO, Heidi O'Neill, who may help drive a turnaround.

Deckers and On Holding have fared better, with Deckers raising its guidance for the full year and On Holding reporting strong revenue growth despite focusing on margin expansion over revenue growth.