One of the largest sports and athletic-wear companies of the modern time whitethorn beryllium disappointing its namesake. Nike, the sportswear institution named aft the Greek goddess of victory, is losing its spot successful the apical 100 U.S. companies for the first clip successful astir 2 decades. The diversion apparel elephantine lost complete $200 cardinal successful marketplace headdress since its all-time high successful 2021, a adjacent 80% driblet successful conscionable the 5 years that person passed, and a plummet truthful terrible that the erstwhile mighty institution is nary longer listed connected the S&P 100.
From the company’s $264 cardinal highest successful Nov. 2021 (when Nike shares traded astatine $179.10), the institution is presently worthy astir $57 cardinal today, down 78%, arsenic shares for the institution are presently trading astatine astir $38 apiece.
After almost 18 years connected the S&P 100—and aft a 36% driblet successful marketplace headdress successful 2026 alone—Nike will exit the benchmark connected Sept. 21. It was a slow burn: The reshuffling is simply a consequence of a multiyear diminution for the company. Current S&P Dow Jones Indices rules posit that quarterly changes are designed to make the indexes much typical of their respective market-capitalization ranges. Nike will still stay successful the S&P 500.
Nike isn’t the only institution to suffer its spot successful the benchmark: Honeywell Aerospace, Simon Property Group and Colgate-Palmolive besides time off connected the aforesaid date. Instead, accusation exertion assemblage companies will return their place, likeDell Technologies, Palo Alto Networks, Arista Networks and Sandisk, marking a trend towards servers and information infrastructure successful the blue-chip index.
Why is Nike dropping?
According to Nike’s investor report, the company’s underlying business deteriorated arsenic it reported $46.4 cardinal successful fiscal 2026 revenue, down 2% connected a currency-neutral basis. Greater China remained a problem for the company, pinch income falling 17% connected a constant-currency ground successful the company’s 4th quarter, which ended May 31 of this year. Nike warned that gross would proceed declining into the first half of fiscal 2027.
The company’s direct-to-consumer business has besides struggled, pinch FY2026 direct-to-consumer gross falling 6% to $17.7 billion—and wholesale gross accrued 6% to $27.5 cardinal according to Nike’s results. The company’s turnaround nether CEO Elliott Hill has progressively focused connected rebuilding wholesale relationships, reducing excess inventory and returning the brand’s accent connected capacity products.
“We made meaningful structural improvements to laic the groundwork for our Sport Offense crossed our squad culture, innovative product, marque strength, and really we service consumers successful our countries and cities,” Hill said successful the report. “While we proceed to look top-line headwinds, we’re encouraged by advancement successful capacity merchandise and are focused connected accordant execution, improved profitability and scaling our wins to recognize our afloat potential.”
China has besides go peculiarly important to the turnaround. Nike has endured 8 consecutive quarters of declining income successful the state and is moving to return greater power complete online distribution, including pulling online income authorities from awesome unit partners. The institution is besides facing title from Chinese brands specified arsenic Anta and Li Ning arsenic good arsenic world rivals including Hoka and On.
Reuters reported successful June that Nike shares were already down astir 35% for 2026 aft the company’s latest results, while the banal had fallen sharply complete the preceding years arsenic investors grew skeptical that the turnaround would nutrient a meaningful recovery.
Nike did not instantly respond to a petition for remark from Fortune.
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