We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
NKE or DECK: Which Athletic Footwear Stock Should You Bet On?
Read MoreHide Full Article
The competition in the athletic footwear space is heating up, with two key players — NIKE Inc. (NKE - Free Report) and Deckers Outdoor Corporation (DECK - Free Report) — drawing investor attention. While NIKE leans on its global brand power and deep product portfolio, Deckers is gaining traction with strong growth from brands like HOKA and UGG. As market dynamics evolve and consumer preferences shift, the real question is: which stock has the better upside potential in the months ahead?
The Case for NIKE
NIKE continues to hold a prominent position in the athletic footwear and apparel market, supported by its strong brand equity, top-tier marketing partnerships and an extensive global distribution network. The company’s unique ability to seamlessly combine sport performance with cultural relevance has made it a category-defining brand, generating consistent consumer demand across both performance and lifestyle segments.
Despite facing near-term macroeconomic and operational challenges, such as tariffs and inventory normalization, NIKE’s management is taking decisive action. The company’s “Win Now” strategy is focused on reigniting growth through rebalancing wholesale partnerships, accelerating innovation cycles, refreshing product lines, and enforcing tighter inventory discipline. These initiatives aim to stabilize performance in fiscal 2025 and position the brand for stronger growth in fiscal 2026.
NIKE is reaffirming its commitment to its core identity: sport. The company is accelerating its product pipeline, expanding into new performance categories, and leveraging bold marketing efforts to reinforce its cultural leadership. Moreover, strategic moves to enhance retail presentation and reduce discounting are expected to improve brand perception and support margin recovery.
Innovation remains central to NIKE’s approach. The introduction of the “Speed Lane” development model, complementing the existing “Express Lane,” allows for quicker adaptation to consumer trends and greater agility in bringing new designs to market. A series of new franchises launching in the second half of fiscal 2025 will help NIKE regain momentum in running, training, and lifestyle categories. As the company shifts its digital strategy to prioritize full-price sales and organic traffic, it is building a more balanced and premium-aligned business.
However, NIKE has provided a cautious outlook for the fiscal fourth quarter, anticipating the impacts of new tariffs on imports from China and Mexico. For the fourth quarter fiscal 2025, the company expects a mid-teens revenue decline, likely at the lower end, influenced by North American shipment timing and foreign exchange headwinds. Gross margin is projected to contract by 400-500 basis points, reflecting the effects of prior-year restructuring charges. Despite these near-term headwinds, NIKE’s strong fundamentals, proactive leadership and clear growth roadmap make it a compelling long-term investment opportunity in the global athleticwear market.
The Case for Deckers
Deckers is making significant strides with its brand portfolio, driven by the growing popularity of its flagship brands, UGG and HOKA. UGG continues to lead the premium lifestyle footwear market, while HOKA is rapidly gaining ground in the high-performance athletic segment. Both brands enjoy strong customer loyalty, supported by effective inventory management and healthy full-price sell-through rates.
Innovation remains a cornerstone of Deckers’ growth strategy. HOKA’s product launches, including the Bondi 9 and Cielo X1, reinforce its leadership in performance footwear, while UGG is expanding beyond its traditional winter-focused lineup into sneakers, hybrid styles, and men’s fashion. These product innovations align with shifting consumer preferences, enabling Deckers to broaden its offerings and effectively capture new market segments.
International expansion is also a critical pillar of Deckers’ long-term strategy, with both UGG and HOKA gaining momentum in key global markets such as China. This global push, combined with continued product diversification, enhances the company’s revenue growth potential. Additionally, Deckers’ rapidly growing direct-to-consumer (DTC) segment is fueling success, driven by investments in omnichannel capabilities, including e-commerce enhancements and loyalty programs like UGG Rewards, which are boosting customer acquisition and strengthening brand loyalty worldwide.
Despite these positives, Deckers faced some notable headwinds. A primary concern is inventory availability, especially for UGG. Accelerated order fulfillment earlier in the fiscal year led to constrained inventory levels, limiting sales during the fourth quarter. Management has already flagged a difficult year-over-year comparison for UGG.
NKE Vs DECK: How Do Estimates Stack Up?
The Zacks Consensus Estimate for NIKE’s fiscal 2025 sales and earnings per share (EPS) suggests a year-over-year decline of 10.7% and 45.6%, respectively. The consensus estimate for EPS for the current fiscal year has moved up 5.4% in the past 60 days. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Deckers' fiscal 2025 sales and EPS implies year-over-year growth of 15.4% and 21.2%, respectively. The consensus estimate for EPS for the current fiscal year has increased 0.2% in the past seven days.
Image Source: Zacks Investment Research
NKE Vs DECK: A Look at Stock Performances
DECK shares have dropped by 30% over the past six months, and NKE stock has declined 17.3% during the same period. While NIKE’s decline reflects broader market pressure and cautious consumer spending, its performance remained more resilient compared to DECK.
Image Source: Zacks Investment Research
NIKE vs. Deckers: A Dive Into Stock Valuation
NIKE’s forward 12-month price-to-sales (P/S) multiple sits at 2.03, below its median of 2.84 in the last three years. DECK is trading at a forward P/S multiple of 3.53, above its median of 3.47 in the last three years.
NIKE’s stock looks cheap from a valuation perspective, potentially offering attractive entry points for value-conscious investors. Moreover, with powerful brand equity and a solid strategy, the company is well-positioned for continued growth. We note that Deckers seems pricier than NIKE in terms of their current P/S ratios.
Image Source: Zacks Investment Research
NKE or DECK: Which is the Smarter Bet?
NIKE stands out as the stronger investment candidate, backed by a proactive shift toward revitalizing growth through innovation, retail refinement, and digital transformation. Its strategic emphasis on performance categories, cultural relevance, and operational discipline aims to counteract short-term setbacks such as tariffs and restructuring costs, positioning the brand for renewed momentum in the next fiscal cycle.
While Deckers continues to benefit from strong brand momentum and direct-to-consumer growth, it faces challenges such as inventory tightness, increased promotional activity, and margin pressure from elevated logistics costs. Despite solid progress in product expansion and international markets, near-term headwinds and cost-related uncertainties could weigh on investor sentiment. In the current environment, NIKE’s scale, execution focus, and brand equity offer a clearer path to long-term value.
Image: Bigstock
NKE or DECK: Which Athletic Footwear Stock Should You Bet On?
The competition in the athletic footwear space is heating up, with two key players — NIKE Inc. (NKE - Free Report) and Deckers Outdoor Corporation (DECK - Free Report) — drawing investor attention. While NIKE leans on its global brand power and deep product portfolio, Deckers is gaining traction with strong growth from brands like HOKA and UGG. As market dynamics evolve and consumer preferences shift, the real question is: which stock has the better upside potential in the months ahead?
The Case for NIKE
NIKE continues to hold a prominent position in the athletic footwear and apparel market, supported by its strong brand equity, top-tier marketing partnerships and an extensive global distribution network. The company’s unique ability to seamlessly combine sport performance with cultural relevance has made it a category-defining brand, generating consistent consumer demand across both performance and lifestyle segments.
Despite facing near-term macroeconomic and operational challenges, such as tariffs and inventory normalization, NIKE’s management is taking decisive action. The company’s “Win Now” strategy is focused on reigniting growth through rebalancing wholesale partnerships, accelerating innovation cycles, refreshing product lines, and enforcing tighter inventory discipline. These initiatives aim to stabilize performance in fiscal 2025 and position the brand for stronger growth in fiscal 2026.
NIKE is reaffirming its commitment to its core identity: sport. The company is accelerating its product pipeline, expanding into new performance categories, and leveraging bold marketing efforts to reinforce its cultural leadership. Moreover, strategic moves to enhance retail presentation and reduce discounting are expected to improve brand perception and support margin recovery.
Innovation remains central to NIKE’s approach. The introduction of the “Speed Lane” development model, complementing the existing “Express Lane,” allows for quicker adaptation to consumer trends and greater agility in bringing new designs to market. A series of new franchises launching in the second half of fiscal 2025 will help NIKE regain momentum in running, training, and lifestyle categories. As the company shifts its digital strategy to prioritize full-price sales and organic traffic, it is building a more balanced and premium-aligned business.
However, NIKE has provided a cautious outlook for the fiscal fourth quarter, anticipating the impacts of new tariffs on imports from China and Mexico. For the fourth quarter fiscal 2025, the company expects a mid-teens revenue decline, likely at the lower end, influenced by North American shipment timing and foreign exchange headwinds. Gross margin is projected to contract by 400-500 basis points, reflecting the effects of prior-year restructuring charges. Despite these near-term headwinds, NIKE’s strong fundamentals, proactive leadership and clear growth roadmap make it a compelling long-term investment opportunity in the global athleticwear market.
The Case for Deckers
Deckers is making significant strides with its brand portfolio, driven by the growing popularity of its flagship brands, UGG and HOKA. UGG continues to lead the premium lifestyle footwear market, while HOKA is rapidly gaining ground in the high-performance athletic segment. Both brands enjoy strong customer loyalty, supported by effective inventory management and healthy full-price sell-through rates.
Innovation remains a cornerstone of Deckers’ growth strategy. HOKA’s product launches, including the Bondi 9 and Cielo X1, reinforce its leadership in performance footwear, while UGG is expanding beyond its traditional winter-focused lineup into sneakers, hybrid styles, and men’s fashion. These product innovations align with shifting consumer preferences, enabling Deckers to broaden its offerings and effectively capture new market segments.
International expansion is also a critical pillar of Deckers’ long-term strategy, with both UGG and HOKA gaining momentum in key global markets such as China. This global push, combined with continued product diversification, enhances the company’s revenue growth potential. Additionally, Deckers’ rapidly growing direct-to-consumer (DTC) segment is fueling success, driven by investments in omnichannel capabilities, including e-commerce enhancements and loyalty programs like UGG Rewards, which are boosting customer acquisition and strengthening brand loyalty worldwide.
Despite these positives, Deckers faced some notable headwinds. A primary concern is inventory availability, especially for UGG. Accelerated order fulfillment earlier in the fiscal year led to constrained inventory levels, limiting sales during the fourth quarter. Management has already flagged a difficult year-over-year comparison for UGG.
NKE Vs DECK: How Do Estimates Stack Up?
The Zacks Consensus Estimate for NIKE’s fiscal 2025 sales and earnings per share (EPS) suggests a year-over-year decline of 10.7% and 45.6%, respectively. The consensus estimate for EPS for the current fiscal year has moved up 5.4% in the past 60 days. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Deckers' fiscal 2025 sales and EPS implies year-over-year growth of 15.4% and 21.2%, respectively. The consensus estimate for EPS for the current fiscal year has increased 0.2% in the past seven days.
Image Source: Zacks Investment Research
NKE Vs DECK: A Look at Stock Performances
DECK shares have dropped by 30% over the past six months, and NKE stock has declined 17.3% during the same period. While NIKE’s decline reflects broader market pressure and cautious consumer spending, its performance remained more resilient compared to DECK.
Image Source: Zacks Investment Research
NIKE vs. Deckers: A Dive Into Stock Valuation
NIKE’s forward 12-month price-to-sales (P/S) multiple sits at 2.03, below its median of 2.84 in the last three years. DECK is trading at a forward P/S multiple of 3.53, above its median of 3.47 in the last three years.
NIKE’s stock looks cheap from a valuation perspective, potentially offering attractive entry points for value-conscious investors. Moreover, with powerful brand equity and a solid strategy, the company is well-positioned for continued growth. We note that Deckers seems pricier than NIKE in terms of their current P/S ratios.
Image Source: Zacks Investment Research
NKE or DECK: Which is the Smarter Bet?
NIKE stands out as the stronger investment candidate, backed by a proactive shift toward revitalizing growth through innovation, retail refinement, and digital transformation. Its strategic emphasis on performance categories, cultural relevance, and operational discipline aims to counteract short-term setbacks such as tariffs and restructuring costs, positioning the brand for renewed momentum in the next fiscal cycle.
While Deckers continues to benefit from strong brand momentum and direct-to-consumer growth, it faces challenges such as inventory tightness, increased promotional activity, and margin pressure from elevated logistics costs. Despite solid progress in product expansion and international markets, near-term headwinds and cost-related uncertainties could weigh on investor sentiment. In the current environment, NIKE’s scale, execution focus, and brand equity offer a clearer path to long-term value.
NKE currently carries a Zacks Rank #3 (Hold), whereas DECK has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.