Stocks Like Nike and Lululemon Plunge as Footwear Sector Struggles

Footwear and athletic apparel stocks have taken a hit in recent years. Stocks like Nike (NKE), Lululemon Athletica (LULU), Deckers (DECK), and On Holding (ONON) have plummeted, with all four falling more than 50% from their highs.

The sector's struggles can be attributed to several factors, including persistent inflation that has weighed on discretionary spending, tariffs in the U.S., and the loss of pandemic-driven tailwinds that boosted sales of comfort apparel and footwear.

Despite the challenges, these stocks are trading at attractive multiples. A closer look reveals that On Holding may be the best buy among the four.

Nike's collapse has been particularly painful, with the stock down over 75% from its pandemic-era peak. New CEO Elliott Hill has been at the helm for nearly two years but his turnaround efforts have yet to pay off.