After Nike's Drop, Here Are the 3 Retail Growth Stocks I'd Buy Today

Nike (NYSE: NKE) stock has fallen about 70% from its peak over the past few years. Some of the damage has been self-inflicted, and softer consumer spending hasn't helped. Sales have remained under pressure, weighing on the shares.

But one brand's stumble shouldn't scare investors away from the entire retail and apparel space. Plenty of companies are dealing with the same macro headwinds and still posting relatively strong financial results. The key is to focus on businesses that are benefiting from multiple growth engines, premium brand pricing power, or earlier-stage growth runways.

Using that criteria, here are three retail growth stocks I'd buy and hold for the long term.

Image source: Getty Images.

1. Amazon

Amazon (NASDAQ: AMZN) became the top apparel seller in 2018, according to Wells Fargo, and continues to build on that lead thanks to its unmatched selection and massive fulfillment network built for fast delivery.

Amazon is using artificial intelligence (AI) to widen its moat. Its agentic shopping assistant, Rufus, was used by more than 300 million customers last year, giving Amazon another way to improve discovery, customer loyalty, and drive more sales.

After a sluggish sales period, Amazon's online store is bouncing back. In 2025, online store sales rose 9% year over year to $269 billion. On top of that performance, faster-growing segments like advertising, subscription services, and cloud services padded its total revenue, which grew 12% to reach $716 billion.

With multiple long-term growth drivers, including AI, satellite broadband service (Amazon Leo), and steady demand for everyday essentials, the stock offers several paths to compound value over time. Based on trailing operating cash flow, Amazon stock trades at about a 16 multiple, near its cheapest level in years.

2. Lululemon Athletica

Lululemon (NASDAQ: LULU) has also seen its stock slide over the past year amid consumer pullback. But in recent years, Lululemon has consistently posted stronger revenue growth than Nike. That continued in the most recent quarter, with Lululemon reporting roughly 1% year-over-year sales growth, while Nike posted flat revenue growth.

The most revealing detail of Lululemon's opportunity is international growth. While the North American market remains under pressure, Lululemon's international business is still expanding at a healthy pace. China revenue grew 24% year over year, with total international revenue up 17%. Nike, by contrast, saw a 7% decline in China, with low single-digit growth in other international markets.

Lululemon's international momentum suggests its localized product approach and marketing are resonating with customers, pointing to a massive long-term opportunity. Meanwhile, North America could start recovering this year if new product launches land the way management expects. On the March earnings call, executives said early customer response to the seasonal spring releases has been strong.

The stock is priced as if the best days are behind it, but Lululemon's international momentum shows that might not be the case. Shares trade at a forward price-to-earnings multiple of 12 based on this year's consensus earnings estimate. For a premium brand with a growth runway ahead, that could be a rare bargain for patient investors.

3. On Holding

If you're looking for the "next Nike," On Holding (NYSE: ONON) is a top contender. The company has turned its Cloud footwear franchise into a powerful growth engine, with annual revenue increasing fourfold since 2021.

Revenue rose 23% year over year last quarter, demonstrating strong demand even amid a weak consumer-spending backdrop. The most telling signal is margin performance. On posted a record 64% gross margin, highlighting premium pricing power. By comparison, Nike's gross margin ticked down to 40% in the recent quarter, underscoring how much more profitable On's model is at this stage of the company's expansion.

Of course, On isn't immune to consumer weakness. Revenue growth has slowed somewhat in recent quarters. That likely contributes to the stock being down 50% from its highs. Still, the long-term setup for this shoe stock looks attractive. The stock trades around 21 times forward earnings, while analysts expect roughly 26% annualized earnings growth in the coming years.

Nike may be struggling, but retail winners are still out there. In this environment, the best opportunities are showing up in companies with diversified growth engines, premium pricing power, and long growth runways. Amazon, Lululemon, and On Holding fit the bill.

Wells Fargo is an advertising partner of Motley Fool Money. John Ballard has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Lululemon Athletica Inc., Nike, and On Holding. The Motley Fool has a disclosure policy.