Three retail growth stocks to buy and hold for the long term

Nike stock has fallen about 70% from its peak over the past few years, reflecting both self-inflicted issues and softer consumer spending. Sales pressure has weighed on the shares. However, a single brand’s struggles do not necessarily signal trouble for the broader retail and apparel sector, where some companies are still delivering relatively strong results despite macro headwinds.

Investors looking for long-term opportunities may want to focus on retailers and apparel brands with multiple growth engines, premium pricing power, or earlier-stage growth runways. Based on those criteria, the following three stocks stand out.

Amazon: AI-enabled shopping and expanding revenue base

Amazon became the top apparel seller in 2018, according to Wells Fargo, and has continued to build on that position through its selection and fulfillment network designed for fast delivery.

The company is also using artificial intelligence to strengthen its competitive moat. Its agentic shopping assistant, Rufus, was used by more than 300 million customers last year, supporting improved discovery, customer loyalty, and sales.

After a sluggish period, Amazon’s online store performance has rebounded. In 2025, online store sales rose 9% year over year to $269 billion. Total revenue grew 12% to $716 billion, supported by faster-growing segments including advertising, subscription services, and cloud services.

With multiple long-term growth drivers—such as AI, satellite broadband service (Amazon Leo), and steady demand for everyday essentials—Amazon trades at about a 16 multiple on trailing operating cash flow, near its cheapest level in years.

Lululemon Athletica: international momentum and improving signals

Lululemon’s stock has also declined amid consumer pullback, but the company has generally posted stronger revenue growth than Nike in recent years. In the most recent quarter, Lululemon reported roughly 1% year-over-year sales growth, while Nike posted flat revenue growth.

International performance is a key differentiator. While North America remains under pressure, Lululemon’s international business continues to expand. China revenue grew 24% year over year, and total international revenue rose 17%. Nike, by contrast, saw a 7% decline in China, with low single-digit growth in other international markets.

Management has pointed to early customer response to seasonal spring releases. On the March earnings call, executives said early response has been strong, suggesting North America could recover this year if new product launches perform as expected.

Despite the stock’s recent weakness, the valuation reflects a cautious outlook. Lululemon trades at a forward price-to-earnings multiple of 12 based on this year’s consensus earnings estimate, which the article frames as potentially attractive for long-term investors given the international growth runway.

On Holding: premium margins and accelerating revenue

On Holding is positioned as a potential “next Nike,” with its Cloud footwear franchise described as a powerful growth engine. The article states that annual revenue has increased fourfold since 2021.

On’s latest results show continued momentum. Revenue rose 23% year over year last quarter, indicating demand remains resilient even amid a weaker consumer-spending backdrop.

Margin performance is highlighted as the most important signal. On posted a record 64% gross margin, reflecting premium pricing power. By comparison, Nike’s gross margin ticked down to 40% in the recent quarter.

The article notes that On is not immune to consumer weakness, with revenue growth slowing in recent quarters. It also points to the stock being down 50% from its highs. Still, the long-term setup is described as attractive, with the stock trading around 21 times forward earnings. Analysts expect roughly 26% annualized earnings growth in the coming years.

Bottom line

While Nike faces ongoing challenges, the article argues that retail winners remain available—particularly companies with diversified growth engines, premium pricing power, and longer growth runways. It concludes that Amazon, Lululemon, and On Holding fit that profile.