Nike will be removed from the S&P 100 index effective September 21, ending an 18-year tenure in the prestigious roster of leading U.S. companies. The company’s shares have declined significantly from a peak of approximately $179 per share in 2021 to a fresh 52-week low of $36.85, representing a loss of over $200 billion in market capitalization.
The index change reflects a broader shift in market composition, with S&P Dow Jones Indices replacing departing blue-chip companies like Nike, Colgate-Palmolive, Honeywell Aerospace, and Simon Property Group with technology stocks benefiting from the artificial intelligence boom, including SanDisk, Palo Alto Networks, Dell Technologies, and Arista Networks. Nike will remain part of the S&P 500 despite the removal.
Nike’s performance challenges stem from multiple areas. Revenue from its Direct-to-Consumer division fell 8% on a currency-neutral basis in fiscal year 2026, with Nike Brand Digital declining 12% and Nike-owned stores dropping 4%. Direct-to-consumer revenues have trended downward, falling from approximately $21 billion in 2024 to $17.7 billion in 2026. International sales have also weakened significantly, with total sales in China declining 13% year over year.
The company faces particular difficulty in China despite growth in the overall athletic apparel market, which expanded 51% between 2020 and 2025 to reach $85 billion. Domestic Chinese brands have gained traction through the “China Chic” phenomenon. Additionally, Converse, a Nike-owned brand, has experienced severe headwinds with sales plummeting 32% over the past 12 months on a currency-neutral basis.
CEO Elliott Hill expressed cautious optimism about the company’s turnaround strategy, noting progress in performance products while acknowledging ongoing top-line challenges. Some analysts have suggested the recent selloff may be overdone, with at least one predicting shares could reach $75 if the company successfully executes its plan. Nike is not alone in facing difficulties, as other sportswear companies including Lululemon and Dick’s Sporting Goods have also reported recent declines.
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