Nike's removal from the S&P 100 underscores a broader structural decline, as competitors Deckers and On Holding capture market share with superior gross margins and double-digit growth.
Nike dropped from S&P 100 after 80% value loss, Q4 underlying EPS weak, China revenue down 17%, and analyst downgrades.
Deckers gaining athletic-footwear share with HOKA growth and strong gross margins above 56.5%.
On Holding capturing market share with direct-to-consumer growth and 65.4% gross margin.
Nike faces a significant setback as it is removed from the S&P 100 following an 18-year tenure and a 75% five-year share price decline. Underlying Q4 earnings of $0.20 per share, once adjusted for tariff windfalls, highlight deep structural issues, including a 17% revenue drop in China and persistent analyst downgrades.
Nike was removed from the S&P 100 effective September 21 following a prolonged period of underperformance that saw the company's market capitalization drop by approximately $200 billion.
Competitors like Deckers (HOKA) and On Holding are gaining significant market share by leveraging strong direct-to-consumer growth and maintaining gross margins substantially higher than Nike's current 40% level.