Nike "falls" and is kicked out of the S&P 100 for the first time in 18 years

"It has less and less of Nike's own unique characteristics," says Wanbua, a senior long-time Nike fan living in New York, USA. Recently, in addition to Nike products, he has also started wearing sneakers from China's Li-Ning. Nike's stock price has fallen to a 12-year low, and the brand has been confirmed to be removed from the S&P 100 Index. There are three main reasons behind Nike's decline...

The downward trend of sportswear giant Nike is still continuing. Its stock price has hit a 12-year low, and the decision has been made to remove it from the S&P 100 Index. The brand's influence has been greatly weakened, and it has even been neglected by sports lovers. The underlying reasons include the deteriorated relationship with retailers, as well as the excessive overdraw of the brand caused by "scarce limited-edition marketing".

Twenty-five-year-old Musau Wambua lives in New York City, USA. He loves basketball and has been a loyal fan of Nike's "Air Jordan" for many years. He said: "Recently, Nike has only launched trendy products that cater to the style of ballet shoes, and it has less and less of its own unique characteristics."

Wambua has switched to buying sneakers from Chinese brand Li-Ning, whose popularity among New York residents is on the rise. According to him, this Chinese basketball shoe, which is mostly used on outdoor courts, has a solid sole material and is more durable than sneakers from American brands.

The trigger for Nike's deteriorating performance emerged in June 2024. At that time, affected by the worsening performance forecast, Nike's stock price plummeted by 20% in a single day. There has been no improvement in its operations since then. For the full fiscal year 2025 (ending in May 2026), total sales reached 46.3 billion US dollars, 10% lower than two years ago. Its market value is only about one-fifth of its peak value in November 2021.

S&P Global announced that it will remove Nike from the S&P 100 Index effective September 21. This is the first such adjustment in 18 years, which means Nike is no longer regarded as a blue-chip stock with high growth and high returns.

There are three main reasons summed up for Nike's decline.

The first is the weakening of mass merchandise store channels in the United States. During the COVID-19 pandemic when travel was restricted, Nike focused on its APP direct sales business. Its APP supported home training management and fitness courses, which was widely praised, and the proportion of direct sales increased significantly.

Senior Nike fan Musau Wambua (September 9, New York City, USA)

After reaping the benefits of the high profit margin of direct sales business, Nike began to ignore the sales channels through American mass merchandise stores such as DSW and Foot Locker. The long-established cooperative relationship with mass merchandise stores has deteriorated, reducing opportunities for promotion in important retail spaces that reach consumers, and leading to a decline in brand awareness.

After the economy returned to normal, Nike also tried to remedy the situation. In October 2024, the company's former CEO John Donahoe stepped down, and former marketing executive Elliott Hill took over, making an emergency effort to rebuild relationships with mass merchandise retailers. However, the shelf positions seized by other companies have not been recaptured to this day.

The second is the excess of "scarce limited-edition marketing". In 1985, Nike signed a contract with legendary basketball player Michael Jordan and launched the "Air Jordan" series. Since then, Nike has continued to focus on co-branding with top sports stars.

Former Nike CEO John Donahoe introduced the experience he had accumulated on the large American online auction platform eBay to Nike, and successively launched limited editions of these products. This once sparked a frenzy of reselling and boosted revenue, but the model became unsustainable after fans' enthusiasm faded.

Nike devoted all its energy to releasing limited-edition products, and stopped innovating in the field of high-performance running shoes that ordinary consumers need. During this period, emerging brands such as the Swiss brand "On" and the French brand "HOKA" took the opportunity to rise.

Data from research firm Euromonitor International shows that from 2023 to 2025, On's average annual sales growth rate was 31%, and HOKA's was 14%. "These two brands, relying on advantages such as lightweight and shock absorption performance, attach importance to building brand stories, and continuously seize market share from established giants such as Nike."

The third reason is that the enterprise is too large in size and has lost its ability to repair itself.

Nowadays, Nike's non-footwear businesses such as apparel and sporting goods account for more than 30% of the total business scale, making corporate decision-making cumbersome and slow. Ann Williams, a consultant familiar with the footwear industry, pointed out: "Emerging brands like On and HOKA are small and flexible, can communicate closely with consumers, and it is difficult for Nike to close the gap."

She said: "The development cycle of sneakers is generally at least 1.5 to 2 years." With Nike's huge enterprise scale, a large number of R&D projects are running in parallel at the same time, making it impossible to stop projects and suddenly change direction. It will take another 2 to 3 years to launch a blockbuster new product that can achieve a turnaround.

Wambua, the Nike fan mentioned earlier, has recently started wearing Li-Ning sneakers from China in addition to Nike products.

British research firm Brand Finance released the global enterprise brand strength list, where Nike dropped from 26th in 2017 to 80th in 2026. A large amount of inventory has to be sold at a discount, squeezing profits. The impression of low-price clearance continues to spread, further damaging the brand's appeal and falling into a vicious circle.

In terms of overseas business outside the United States, in the Chinese market, which used to be a long-term source of profit, local brands have risen, seized market share, and sales have continued to decline. In other words, this actually reflects the weakening of Nike's own brand influence. It is not easy to right this tilting "giant ship".

This article is from the WeChat official account "Nikkei Chinese Network" (ID: rijingzhongwenwang), the authors are Asada Kenji and Mizobuchi Mika, and 36Kr is authorized to republish it.