Although the leading athletic footwear company NIKE, Inc. (NKE) is preparing for the metaverse, its business has most recently been impacted by global supply chain issues. In its last earnings report, the company lowered its fiscal 2022 outlook to account for longer transit times, labor shortages, and extended production shutdowns in Vietnam. Also, NKE expects its full-year sales to increase by mid-single digits, compared with a prior outlook of low double-digit growth. Furthermore, analysts expect NKE’s EPS to decrease 19.2% in the current quarter and 17.8% in the next quarter.
Therefore, we think fundamentally sound footwear stocks Foot Locker, Inc. (FL), Shoe Carnival (NYSE:CUK), Inc. (SCVL), and Caleres, Inc. (CAL) could be ideal bets instead to capitalize on the industry’s solid growth prospects.