NKE Oct 2024 99.000 put

Nike's struggles don't define athleisure sector: Analyst

The retail space, particularly the athletic wear sector, has been experiencing fluctuations, with industry leaders like Nike (NKE) and Lululemon (LULU) showing signs of pressure. KeyBanc Capital Markets Assistant VP of Equity Research Ashley Owens joins Market Domination to discuss broader trends within this dynamic sector. Regarding Nike, Owens emphasizes that investors should focus on how the company can regain its competitive edge and "start to win again." She views the appointment of a new CEO as a positive step, but cautions that improvement "is not something that's gonna happen overnight." Despite Nike's current challenges, Owens maintains that these issues don't necessarily reflect the broader athleisure market, asserting that there isn't much fundamentally wrong with the sector as a whole. Addressing the rising competition in athleisure, Owens points out, "The up-and-coming companies like On Holding (ONON) and Deckers (DECK) are doing very well, and there's no secret about that. I think what's been key for them and what's crucial again in this space to really stay competitive is making sure that you're focusing on newness and innovation and taking a balanced approach. And also just focusing on expanding your offerings a bit," she tells Yahoo Finance. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Angel Smith