Nike and Lululemon shares both sank to multi-year lows in September 2026 as revenue growth slowed at both athletic-apparel makers. Nike has fallen from its November 2021 peak of $161.91 to around $36, while Lululemon has dropped from its December 2023 high of $511.29 to about $96, and analysts expect further earnings declines at both companies in fiscal 2027.
Nike and Lululemon slide to multi-year lows
Nike and Lululemon were both once viewed as resilient names in athletic apparel, but this month both stocks sank to multi-year lows. Lululemon has dropped from a record high of $511.29 per share in December 2023 to about $96 today, while Nike has fallen from its all-time closing high of $161.91 per share in November 2021 to around $36.
Nike's wholesale retreat backfires
Nike's revenue growth was flat in fiscal 2024, fell 10% in fiscal 2025, and was flat again in fiscal 2026. Weak North American sales offset overseas growth, and Nike's push to cut ties with wholesale retailers in favor of its own stores and e-commerce left shelf space open for rivals. As a result, competitors including Deckers' Hoka, New Balance, and On Holding expanded their share of the running and lifestyle sneaker markets.
Heavier markdowns to move inventory pulled Nike's gross margin down from 44.7% in fiscal 2024 to 43.2% in fiscal 2026, while EPS fell from $3.73 to $2.10 over the same span. CEO Elliot Hill, who took over in October 2024, has called fiscal 2027 a "reset" year for the company. Even so, analysts expect Nike's revenue and EPS to decline 2% and 19%, respectively, in fiscal 2027.
Lululemon's growth keeps decelerating
Lululemon avoided Nike's wholesale problem by selling directly to consumers, but its revenue growth slowed from 19% in fiscal 2023 to 10% in fiscal 2024 and just 5% in fiscal 2025. Soft North American demand for women's apparel, competition from brands like Alo Yoga and Vuori, and tariffs on goods manufactured in Asia have squeezed the business. Its gross margin narrowed from 58.3% in fiscal 2023 to 56.6% in fiscal 2025, even as EPS rose from $12.20 to $13.26 on share buybacks. New CEO Heidi O'Neill, a former Nike executive, is trying to stabilize sales through a broader apparel lineup and new marketing, but analysts still expect Lululemon's revenue and EPS to decline 6% and 27%, respectively, in fiscal 2027.
The valuation gap favors Lululemon
Nike still trades at 21 times this year's earnings, versus 10 times for Lululemon, a gap Motley Fool analyst Leo Sun says gives Lululemon less downside. He argues that Lululemon's lower valuation means any positive news could lift the stock, while Nike still trades at a premium tied to its brand and past performance rather than to current results.
Source: The Motley Fool
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