Nike in a slump amid sluggish growth, rising competition [Video]

Nike posted sluggish growth as the largest sportswear brand in the world faced rising competition, a consumer pullback in its key markets and strategy missteps.

Nike’s sales grew 1 per cent last year and were flat last quarter, the company reported Thursday.

The company projects sales to drop 10 per cent next quarter as the company’s classic brands slow down and Nike faces challenges in the online marketplace.

Nike (NKE) stock plunged 12 per cent during after-hours trading.

Nike faces a consumer slowdown for discretionary goods and tough competition from upstart running brands like Hoka and On.

Customers are changing their behaviours, passing up discretionary purchases of expensive sneakers and athletic clothing for basics and experiences such as concerts and travel.

Nike is also facing new competition.

Hoka, a French brand founded as a running shoe for hardcore marathoners that soon caught on in …