Are sneakers out of fashion?

When reading business news about international, publicly traded companies, it's always important to pay attention to who wrote the article and what their purpose is. Are they trying to warn investors, encourage them to buy, or are they trying to put pressure on companies with bad news and profit from the downward trend in their stocks? The article that recently appeared in Cash surprised me. Actually, the sneaker stores you see around town seem to be doing well; they seem to be a trend.

Cash writes:

A new study by Bank of America warns that the sneaker boom could be coming to an end. After 20 years of growth, rates are declining. The decades-long sneaker boom may be over, at least according to analysts at Bank of America. In their 61-page study published in early January, they conclude that the growth prospects for brands like Hoka, On Holdings, Nike, Adidas, and Puma are deteriorating.

The strategists argue that the sporting goods market has experienced a 20-year boom. The share of sneakers rose from less than a quarter to at least half of global shoe sales – peaking during the pandemic. "With this structural shift largely complete, the outlook for future sales growth is now significantly reduced," the analysts wrote. While the sporting goods industry has grown by an average of 9 percent annually since 2007, future growth could be as low as 4 to 5 percent.

But Bank of America's thesis drew criticism. Sneakers now account for roughly 60 percent of shoe sales in the US, says one analyst from Goldman Sachs. Athletic shoes have prevailed as a result of a societal pursuit of comfort – priorities that are unlikely to disappear anytime soon. According to Bloomberg data, the US sneaker category grew by 4 percent in 2025, while fashion shoes shrank by 3 percent. Nevertheless, manufacturers have faced headwinds since the pandemic: fluctuating consumer tastes, weak sales in China, and the threat of US tariffs are taking their toll. Adidas shares fell by over 30 percent last year, Puma dropped by 45 percent, and Nike and On each lost around 10 percent – ​​the latter despite strong revenue growth.

Now, one naturally wonders what this news item, or the cited study, is actually worth. The contradictory information is particularly confusing. Did the share prices fall because of the tariffs Trump imposed, or because of current Western policies that have prompted China, Russia, and other countries to turn their backs on the West and its products in a show of solidarity? And how long would this blockade last? Yes, studies like this sometimes raise more questions than they answer. For investors, this report could be an incentive to pay closer attention to such stocks and monitor them closely, so they can buy in when the stock shows recovery potential.