Nike and Lululemon have reported disappointing earnings, leading to significant drops in their stock prices. Nike's shares skidded more than 6% after the company forecasted a drop in sales in the first half of fiscal 2025, attributing the decline to a shift towards newer styles and innovation, such as reducing supply of classics like the Air Force 1. This move is part of Nike's strategy to save costs by scaling back on franchises. Lululemon also warned of slowing North American sales due to faltering spending, with its shares plunging 15% at the open, marking its largest decline in more than 3 years. The negative reports from both companies have raised concerns about weakening consumer spending, as evidenced by recent negative consumer data points, including a shortfall in February's retail sales and poor results and guidance from other retailers. The impact was also felt by other companies in the sector, with Adidas and Puma shares slipping in response to Nike's results.