'Nike Ousted from S&P 100 After Stock Plunge'

Stock Price Hits 12-Year Low
Plunges 78% From Five Years Ago

Nike, a leading global sports brand, has been removed from the S&P 100, a blue-chip index that is symbolic of the US market, for the first time in 18 years.

S&P Dow Jones Indices announced on September 6 (local time) that it would remove Nike from the S&P 100 index during its quarterly rebalancing on September 21. S&P Dow Jones Indices is the world’s largest provider of financial market indices, managing major indices such as the S&P 500 and the Dow Jones Industrial Average. Nike, however, will remain in the broader S&P 500 market index.

The main reason for the exclusion was an extreme decline in Nike’s stock price. As of September 4, Nike shares closed at $38.40, their lowest level in 12 years. Compared to the peak of $177.51 recorded in November 2021, the stock price has plunged around 78%. Nike’s market capitalization has evaporated by more than $220 billion (approximately 296 trillion won) during this period.

For fiscal year 2026, Nike’s overall revenue was $46.4 billion (about 62 trillion won), nearly unchanged from the previous year. However, major business segments were sluggish, with Nike Direct sales declining by 6% and digital sales falling by 12%, despite ambitious growth targets.

Forbes, a business magazine, described Nike’s removal from the S&P 100 as a “capitulation phase where investors are completely resetting their expectations.” The publication noted, “Investors entering Nike at current price levels are not hoping to relive the glory days of 2021,” adding that, “Rather than countering the pervasive market pessimism, expectations have dropped to simply hoping for slight improvement in performance.”

The competitive landscape has also turned unfavorable for Nike. While Nike focused on sales through its own channels, emerging brands such as Hoka have taken over shelf space from traditional distributors. Established competitors like Adidas have also gained market share by introducing innovative products. According to market research firm Euromonitor International, Nike’s global market share in athletic footwear declined for three consecutive years, dropping to 22.9% in 2025. In contrast, Adidas’ share rose to 12.2%.

Nike has also underperformed in the Chinese market. In Greater China, revenue for fiscal year 2026 (July 2025–June 2026) dropped 13% to $5.85 billion, excluding currency effects. Footwear revenue declined by 15%, in-region direct sales by 12%, and digital sales within Greater China by 29%.

Nike has initiated sweeping changes to restore its brand value. CEO Elliott Hill, who took the helm in October 2024 promising a return to former glory, is focusing on rebuilding relationships with traditional distributors and accelerating new product development. In the online domain, the company plans to reposition its digital stores not merely as channels for pushing out inventory at discounts but as premium outlets selling products at regular prices.

This content was produced with the assistance of AI translation services.