Legacy sneaker brands are losing their footing to newer, trendier rivals
.jpg)
Just do better… Nike may be losing its swoosh factor. The shoe star’s stock had its worst day ever on Friday, wiping out $28B in market cap, after the company forecast that sales would drop 10% this quarter. Sales have cooled, and the AF1 maker announced in February that it would cut jobs as part of a $2B cost slashing. Nike's core sneaker brands have long been a cash cow, but the retailer’s scaled back supply as the Jordan and AF1 hype fades.
Sole searching: Nike’s outlet stores (which sell swoosh-branded shoes and clothes at a discount) have also seen slower traffic as shoppers cut back on nonessentials. Now Nike plans to roll out $100-and-under kicks to win back some points.
Footwear faceoff… Nike is still the world's most valuable shoe maker, but rivals are stepping up their game. “Chunky shoe” faves like Hoka (owned by Uggs parent Deckers), Asics, New Balance, and Roger Federer-backed On have gained traction. Nike competitors made up 35% of the global sports-footwear market last year, up from 20% in 2020. And Nike’s market share (35%) has been sliding since 2021. Adidas has also seen a US sales slump. Gen Z and millennials have led the sneaker switch-up, favoring trendier rivals over legacy logos. While Nike remains the top footwear brand for US teens, it’s losing points to the likes of Hoka and On.
Innovation’s outpacing icons… Industry-defining brands are scrambling to keep up with trends as social media transforms the fashion landscape. Nike’s CEO said it was hard to make a “boldly disruptive shoe” during the pandemic. It’s not just sneakers: Lululemon, once the athleisure go-to, is the second-worst performing S&P 500 stock this year as rivals like Alo and Vuori stretch into the space.