Nike, the global sports industry giant, is set to suffer the humiliation of being expelled from the S&P (Standard & Poor's) 100—an index of corporations that symbolize the United States—for the first time in 18 years due to severe earnings weakness and eroding competitiveness. This goes beyond a simple index removal and symbolizes a fundamental shaking of Nike's market dominance, which once commanded the global consumer goods market.
On the 6th (local time), S&P Dow Jones Indices said it will remove Nike from the S&P 100 through its quarterly rebalancing to be implemented before the U.S. market opens on the 21st. S&P Dow Jones Indices is the world's largest financial index provider, calculating and managing major stock market indexes such as the S&P 500 and the Dow Jones Industrial Average.
In this rebalancing, Colgate-Palmolive, known for toothpaste, Simon Property Group, a shopping mall operating corporation, and Honeywell Aerospace will also drop out of the S&P 100. Their vacancies will be filled by corporations in artificial intelligence (AI) infrastructure and digital technology such as Dell Technologies, Palo Alto Networks, Arista Networks, and SanDisk. Nike will remain in the S&P 500, a much broader market index than the S&P 100.
After years of steep decline, Nike's share price fell to $38.40 on the 4th, the lowest in 12 years. Compared with the record high of $177 in Nov. 2021 five years ago, it has plunged about 78%. The market capitalization wiped out over this period exceeds $220 billion (about 296 trillion won). Based on the 2026 fiscal year, Nike's total revenue was $46.4 billion (about 62 trillion won), effectively flat from a year earlier. Nike Direct revenue, which the company had pushed ambitiously, fell 6%, and digital revenue dropped 12%, with all core institutional sectors weakening in unison.
Forbes said Nike's removal from the S&P 100 "could signal a capitulation phase where investors completely reset expectations." Nike had long enjoyed premium corporation status, guaranteeing steady growth and high returns on capital on the strength of its overwhelming brand power. But now, investors have shifted their view to the point where the goal is not growth but simply an earnings recovery. Forbes noted, "At the current share price level, investors entering Nike are not expecting it to immediately recapture the glory of 2021," adding, "They are merely hoping results come in a bit better than the pervasive pessimism in the market."
Under former Chief Executive Officer (CEO) John Donahoe, who took office in 2020, Nike focused on selling products directly to consumers through its own stores and online mall instead of through retailers that sell multiple brands together. The idea was that by cutting out middle distribution stages, it could take a larger share even when selling the same sneakers. It also offered the advantage of directly understanding who buys what.
However, merely changing sales channels did not raise consumer loyalty or preference. Nike relied excessively on inflating market prices by releasing familiar popular product lines in limited-edition runs. Relationships with existing retailers also weakened. Stores like Foot Locker or ABC-Mart, which sell multiple brands together, are places where consumers try on and directly compare products. By focusing on its own online mall, Nike may have gained more chances to sell directly to existing customers but reduced touchpoints to meet new ones. Massimo Giunco, a former Nike marketing executive, told Forbes that "the reorganization centered on direct sales and digital reduced the role of wholesalers," and "weakened innovation in product development and consumer access through diverse sales networks."
While Nike shrank ties with wholesale partners and fixated on strengthening its own channels, the shelves of existing retailers became home to rising challenger brands. Brands like On and Hoka rapidly expanded their footprint in the high-performance running shoe market. Even traditional rival Adidas boosted its share with innovative products. According to market research firm Euromonitor International, Nike's global sports footwear market share fell for a third consecutive year to 22.9% in 2025. Meanwhile, rival Adidas rose to 12.2%, closing in fast on Nike.
The collapse of the Greater China market, once one of the biggest sources of revenue during the pandemic, also dealt a painful blow. In the 2026 fiscal year (from July 2025 to June 2026), Greater China revenue fell 13% to $5.85 billion on a currency-neutral basis. Footwear institutional sector revenue dropped 15%, own-channel sales in Greater China fell 12%, and digital sales plunged 29%. A decline in offline store traffic and a promotion-driven discount battle amid rising inventories eroded profitability, while domestic Chinese brands such as Anta and Li-Ning also strengthened their dominance in the home market. In its annual report, Nike said, "As store traffic declines and discounting and market inventory build, our sales and profitability are coming under pressure."
Nike's management has pledged sweeping reforms to restore brand value and reclaim pricing power as a premium brand. Chief Executive Officer (CEO) Elliott Hill, who took office in Oct. 2024 vowing to restore past glory, is pouring effort into rebuilding relationships with existing retailers and developing new products. The company also plans to reposition its online business as a storefront for selling at full price rather than a channel to clear inventory through discounts.
But market experts say Nike is still showing a slow earnings recovery and are criticizing the lack of innovative new products. Morningstar analyst David Swartz told Reuters, "Since (Elliott Hill) took office, Nike has continued to talk about the same problems repeatedly," adding, "There should have been more progress." Nike also projected that negative effects from ongoing weakness in Greater China and deteriorating results at its core brand Converse will persist throughout the 2027 fiscal year (from July 2026 to June 2027).