12 Best Apparel Stocks to Invest In

2. Nike, Inc. (NYSE:NKE)

Number of Hedge Fund Holders: 73

Nike, Inc. (NYSE:NKE) designs, markets, and distributes luxury athletic footwear, accessories, equipment, and services for sports and fitness activities. Its operating segments span EMEA, Greater China, APLA, and North America. The company also designs products specifically for the Converse and Jordan brands.

Nike, Inc. (NYSE:NKE) reported a decline of 8% in its revenues on a reported basis and a 9% decline on a currency-neutral basis in fiscal Q2 2025. This decline was primarily due to the ongoing headwinds from the company’s franchise management actions. It is shifting its product portfolio by reducing the proportion of its business driven by its classic footwear franchises, including Air Jordan 1, Air Force 1, and Dunk. The company is actively rebalancing product allocations to its highest traffic channel to maximize full-price realization and franchise health.

However, there is reason to be optimistic, as Nike, Inc. (NYSE:NKE) is considered to be the top apparel and footwear brand by a significantly wide margin among almost 14,000 teenagers who took the Piper Sandler “Taking Stock With Teens” fall 2024 survey. This shows that the brand holds a dominant position among this young demographic. Its gross margin also held steady at 43.6% in fiscal Q2 2025.

In addition, the company’s broad visibility lends it a significant market advantage. It holds the resources to endorse and partner with prominent athletes, provide uniforms for pro sports leagues, and even gain consumer attention through strategic collaborations, such as the recently announced collaboration with Kim Kardashian’s SKIMS.

ClearBridge Large Cap Growth Strategy stated the following regarding NIKE, Inc. (NYSE:NKE) in its Q2 2024 investor letter:

“Other moves during the quarter included sales of United Parcel Service (UPS) and NIKE, Inc. (NYSE:NKE). Nike has become overly reliant on key platforms, like Jordan, for revenue growth, while innovation in areas like running has lagged. Nike could face continued revenue and profit pressure as it invests to re-invigorate innovation and re-position the business back toward wholesale outlets. As such, we are seeking out better ways to participate in the global consumer recovery in companies where earnings estimates have already reset.”