The Motley Fool·2026-03-20 07:15Core Viewpoint - Investors are exploring discount opportunities in the sportswear market, particularly with Nike and Lululemon, both of which have seen significant declines in their stock prices [1] Nike - Nike's shares have fallen 69% from their peak as of March 17, and the company is projected to generate $46.7 billion in revenue for fiscal 2026, representing a 9% decline compared to two years prior [3][4] - Under CEO Elliott Hill, Nike is focusing on product innovation, distribution balance, and marketing impact to turn the company around after previous missteps [4] - Nike's global presence and strong brand, supported by a marketing budget that allocates 10% of revenue for branding efforts, provide a competitive edge over smaller rivals [6] - Current market cap for Nike is $79 billion, with a current price of $53.49 and a price-to-sales (P/S) ratio of 1.8, near its lowest in 13 years [8][14] Lululemon - Lululemon's shares are also down 69% from their all-time high, with a 6% sales dip in the latest fiscal quarter attributed partly to the macro environment [8][10] - Revenue growth is projected to increase at a compound annual rate of 4.8% between fiscal 2025 and fiscal 2028, indicating a slowdown from previous years [9] - Lululemon's recent leadership change adds uncertainty, as the company seeks a new CEO to drive growth and product innovation [10] - Despite challenges, Lululemon's financials show a 4.8% revenue increase in fiscal 2025 and a 29% sales surge in China, with an impressive 22.3% operating margin in Q4 [11] - Lululemon's shares trade at a P/S ratio of 1.7, the lowest in 16 years, making it an attractive valuation compared to Nike [14]