Room for multiple successful companies in sportswear: Morningstar's Swartz on Nike's competition

Core Viewpoint - Nike is currently undervalued and is expected to show improvement in sales and performance by 2026, despite recent struggles and sales declines [1][2]. Company Performance - Nike has faced sales declines over the past two years, which is atypical for a company known for high growth [2]. - The company has launched new products, including a new line of running shoes and a collaboration with Skims, aiming to strengthen its position in the athleisure market [3]. Market Position - Despite losing some distribution to competitors like Hoka and On, Nike remains the largest player in the industry and is still the leader in sales among retailers [6][7]. - Retailers such as Foot Locker and Dick's Sporting Goods have a positive outlook on Nike's recent product releases, indicating strong retailer support [7]. Future Outlook - While immediate sales growth may not be evident, the company is positioning itself for a stronger performance in 2026, with significant marketing opportunities such as the upcoming World Cup [8]. - The sportswear industry is growing globally, with increasing interest in sportswear in developing nations, providing ample market opportunities for Nike and its competitors [9].