The athleisure market is undergoing a dynamic shift in 2025, and two names—NIKE and Wolverine World Wide—are at the forefront of the competition. While NIKE’s global dominance and brand power remain unmatched, Wolverine is quietly outpacing its larger rival in terms of growth, operational execution, and investor returns.
NIKE continues to command the largest share of the $300-billion global athleticwear market, with a presence in nearly 190 countries and a portfolio anchored by iconic brands like Jordan and Converse. However, the company is facing significant headwinds this year.
NIKE’s revenue for the twelve months ending February 2025 fell 7.3% year-over-year to $47.8 billion, and fiscal 2025 projections point to a 10.7% decline in sales and a 46.1% drop in earnings per share. Elevated inventories, margin pressures, and soft demand in key markets such as China have weighed heavily on performance, resulting in a 31.8% stock price decline over the past year.
Conversely, Wolverine is experiencing a resurgence. The company reported a 4.4% year-over-year revenue increase in the first quarter of 2025, with gross margins improving to 47.3% and operating margins turning positive. Wolverine’s leading brands, Saucony and Merrell, delivered double-digit and mid-teen revenue growth, respectively, driven by new product launches and expanded distribution.
For the full year, Wolverine is expected to achieve 3.6% sales growth and a 15.4% increase in earnings per share, with its stock delivering a 41.3% total return over the past year—far outpacing both the S&P 500 and NIKE.
From a valuation perspective, NIKE trades at a forward P/E of 32.5x, well above its five-year median, while Wolverine is at a more attractive 16.3x. Wolverine’s diversified supply chain, reduced debt, and strong cash flow further bolster its appeal, especially as it navigates tariff headwinds more effectively than its peers.
In summary, while NIKE’s long-term brand strength and innovation pipeline remain formidable, Wolverine is currently winning the athleisure growth race. Its operational discipline, accelerating brand momentum, and more attractive valuation make it the standout stock for investors seeking growth and value in the sector.
