‘Woke’ Nike Suffers Major Blow as Stock Crashes, Company Removed From S&P 100

Nike is preparing to leave the S&P 100 after nearly 18 years in the index, marking another setback for the sportswear giant after years of stock-market underperformance. The company will be removed later this month as part of the S&P 100’s quarterly rebalancing.

Dell Technologies, Palo Alto Networks, Arista Networks and SanDisk are among the companies being added as Nike and several others depart. Nike shares have fallen sharply from their 2021 peak, with the stock down roughly 78% from that high.

The decline has erased a substantial amount of the company’s market value and pushed shares this summer to levels not seen in more than a decade.

Forbes pointed to several business challenges behind Nike’s prolonged struggles, including increased competition and problems with its retail strategy. “This reflects Nike’s struggles with over-reliance on old franchises, a flawed direct-to-consumer strategy, weakened wholesale ties, and rising competition from brands like Hoka and On, alongside a weak China market.”

Forbes also said the index change reflects broader shifts in the stock market. “The S&P 100 shift also highlights a broader market trend favoring tech and AI infrastructure over traditional consumer giants.”

Nike has also faced criticism over some of its high-profile marketing decisions, including its partnership with former NFL quarterback Colin Kaepernick.

The company featured Kaepernick in a major advertising campaign in 2018, two years after he began kneeling during the national anthem to protest racial injustice and police brutality.

The campaign sparked significant political and cultural debate at the time, with some consumers supporting Nike’s decision while others criticized the company and called for boycotts.

Nike initially experienced strong attention surrounding the campaign, but its longer-term financial difficulties have involved broader issues including weaker sales, competition from newer footwear brands and challenges in China.

The company’s market value has declined dramatically since its 2021 peak as investors have questioned whether Nike can regain momentum in an increasingly competitive athletic footwear market.

Its upcoming removal from the S&P 100 now adds another symbolic milestone to a difficult stretch for one of the world’s most recognizable sportswear brands.