Nike, Lululemon, Deckers, and On Holding Have All Plunged. What's the Best Buy of the Four?
The article says Nike (NKE), Lululemon (LULU), Deckers (DECK), and On Holding (ONON) have each fallen more than 50% from their highs as footwear and athletic apparel sales growth slows. It cites inflation, U.S. tariffs, and the end of pandemic tailwinds. Deckers raised FY EPS guidance to $7.35-$7.50. On reported Q2 gross margin of 65.4% and currency-neutral revenue growth above 20%.
How this was made
The 30-second read
Why it matters
It provides a relative ranking and cites a few concrete datapoints (Nike margin target, Lululemon CEO change and P/E, Deckers raised EPS guidance and buyback share reduction, On’s Q2 earnings metrics and gross margin).
Market read
Traders get a valuation and earnings-metric comparison across four sector laggards, but the article is primarily an editorial “best buy” ranking rather than a new catalyst dump.
What to watch
No discussion of inventory levels, promotional intensity, channel mix trends, or forward guidance beyond the cited EPS range for Deckers and a December-quarter margin target for Nike.
Background
The piece compares four footwear/apparel stocks that have fallen sharply from highs, attributing weakness to macro and sector-specific demand pressures.
Ticker impact
Nike is described as down over 75% from its pandemic peak, with turnaround efforts under CEO Elliott Hill still not working.
Near-term upside likely capped until gross margin expansion or other turnaround KPIs prove out.
The only concrete company-specific datapoint is Nike’s projected gross margin expansion in the December quarter, while the rest is comparative performance and qualitative turnaround critique.
Lululemon is said to be struggling in the Americas with falling comparable sales, while international growth (including China) remains a bright spot.
Moderate rebound potential if international growth offsets Americas softness and the new CEO improves execution.
The text provides a specific valuation datapoint (P/E of 11) and a concrete management change (new CEO in September), but no new earnings/guidance print.
Deckers raised full-year guidance EPS to $7.35-$7.50 in the first quarter and is reducing share count via buybacks.
Bias toward continued stabilization or recovery if guidance and buyback pace hold.
The article includes specific guidance numbers and a quantified buyback effect (shares outstanding down 7%), which are actionable fundamentals.
On Holding is described as having just reported second-quarter earnings, with currency-neutral revenue growth over 20% and gross margin at 65.4%.
Potential for further upside follow-through if investors reward margin expansion and currency-neutral growth persistence.
The newest concrete facts are earnings timing (reported Tuesday morning) and specific Q2 metrics (20%+ currency-neutral revenue growth, 65.4% gross margin, P/E of 22).
Market effects
Broad footwear and athletic apparel weakness is attributed to inflation, tariffs, and fading pandemic tailwinds, implying sector-wide demand sensitivity.
International growth, especially China, is cited as a relative offset for Lululemon, suggesting regional divergence within the sector.
Tariffs and currency (strong Swiss franc) are highlighted as cross-border headwinds, affecting reported growth and margins for global brands.
Counterpoint
The article’s “best buy” framing may underweight the risk that margin expansion is temporary or that demand softness persists longer than the market expects.
Key entities
- companyNike
Turnaround under CEO Elliott Hill is described as not yet delivering results; December-quarter gross margin expansion is cited.
- companyLululemon Athletica
Americas comparable sales are described as falling; international growth and a new CEO in September are cited.
- companyDeckers
Raised full-year EPS guidance to $7.35-$7.50 and is buying back shares, with shares outstanding down 7%.
- companyOn Holding
Reported Q2 earnings; currency-neutral revenue growth is described as 20%+ and gross margin as 65.4%.
