The S&P 500 index, often regarded as the most significant benchmark in the investment community, serves as a key indicator of the performance of large, profitable companies based in the United States. Recently, however, it has suffered substantial losses, primarily due to a wave of uncertainty surrounding impending tariff announcements that have left investors feeling jittery.

Among the companies affected by this volatility, some constituents of the S&P 500 are particularly struggling, and recent data reveal that one consumer discretionary stock has plummeted a staggering 69% from its peak, a record established back in November 2021. While its clear that this business is navigating a challenging landscape, the current dip may present a potentially appealing investment opportunity for those willing to take the risk.

So, should investors consider buying shares and holding them for the long haul of 20 years? Heres what prospective investors need to keep in mind.

Losing the Winning Mentality

When discussing iconic brands, few are as universally recognized as Nike (NYSE: NKE). For years, this global sportswear giant has been synonymous with a winning mentality, consistently pushing the envelope in athletic wear and footwear innovation. However, recent performance metrics tell a different story, as the company has faced numerous challenges that have resulted in disappointing sales figures.

In fact, across the last four fiscal quarters, Nike has reported a year-over-year decline in revenue, with the third quarter of 2025 (which concluded on February 28) illustrating a concerning drop of 9%. This trend is particularly alarming for investors who have come to expect steady growth from a company with such a storied history.

What makes Nikes situation even more troubling is the contrasting performance from its long-time competitors. Brands like Adidas and Puma have managed to achieve growth in their latest fiscal years, while newer players in the market, such as On Holding and Deckers Hoka, are experiencing impressive revenue gains. In this competitive landscape, Nike stands out starkly, drawing attention to its ongoing struggles.

The roots of these issues can be traced back to the decisions made by the former CEO, John Donahoe. His aggressive strategy focused on enhancing digital sales while simultaneously relying heavily on Nike's classic footwear franchises. This approach inadvertently alienated some of Nikes wholesale retail partners and failed to deliver innovative new designs that captivate shoppers interests.

In response to these challenges, newly appointed CEO Elliott Hill is endeavoring to steer the company in a different direction. His immediate focus is to offload older inventory while reigniting a culture of product innovation. The goal is to create fresh offerings that can once again spark strong consumer interest and invigorate sales.

Zooming Out for Perspective

While it's easy to become engrossed in Nike's current difficulties, its essential for investors to zoom out and consider the broader context. Despite their recent struggles, Nike remains one of the most recognizable brands in the world. The company has built decades of brand equity through savvy marketing, high-profile endorsements from elite athletes, strategic partnerships with premier sports leagues, and a track record of innovative product releases.

These factors have allowed the company to resonate with consumers globally, indicating that while the present may be fraught with challenges, the potential for recovery and growth remains significant.