Sportswear Stocks NKE, LULU, and DECK Face Valuation Pressures Amid Market Highs

As equity markets reach record levels, value hunters are scouring overlooked sectors for opportunities. The athleisure segment—once a darling of growth investors—now shows signs of strain, with Nike (NKE), Lululemon (LULU), and Deckers Outdoor (DECK) trading 20%-60% below their yearly peaks. These declines follow Nike's troubling earnings report, featuring a 12% quarterly revenue drop and a valuation still demanding a 43x premium to 2026 earnings estimates.

The sportswear giant's price-to-earnings ratio stands at double the S&P 500's multiple, raising questions about its growth trajectory. While bargain seekers may eye these pullbacks, the sector's rich valuations suggest caution prevails. No direct cryptocurrency or exchange correlations emerge in this traditional market analysis.