Nike is set to leave the S&P 100 index following a massive $200 billion market cap loss, as the company struggles with declining sales in China and a failed direct-to-consumer pivot.
Nike is being removed from the S&P 100 index on September 21 following a massive market capitalization decline of over $200 billion since its 2021 peak. The company's performance has been hampered by a 17% sales drop in Greater China and a 6% decline in direct-to-consumer revenue, signaling a broader struggle to maintain its blue-chip status. While CEO Elliott Hill is attempting a turnaround focused on wholesale relationships and performance products, the company expects revenue headwinds to persist into the first half of fiscal 2027.
No, Nike is only being removed from the S&P 100; it will remain a constituent of the S&P 500.
The removal is a result of a multiyear decline in market capitalization, which no longer meets the index's requirements for representation.
Nike will exit the S&P 100 on September 21, ending an 18-year tenure as the sportswear giant grapples with a 78% decline in market value since 2021. The company, now valued at $57 billion, faces persistent revenue headwinds in China and a struggling direct-to-consumer strategy that has forced a pivot back toward wholesale partnerships.
Nike is being removed because its market capitalization has fallen significantly, no longer meeting the criteria required to represent the top 100 U.S. companies in the benchmark index.
Under CEO Elliott Hill, Nike is focusing on rebuilding wholesale relationships, reducing excess inventory, and refocusing on performance-based products to reverse declining sales.