On September 4, S&P Dow Jones Indices announced the results of its quarterly rebalancing: Nike will be officially removed from the S&P 100 index before the U.S. market opens on September 21.
In addition to Nike, Honeywell Aerospace, Simon Property Group and Colgate-Palmolive were also removed from the S&P 100 in this rebalancing, while Dell Technologies, Palo Alto Networks, Arista Networks and Sandisk were added to the index.
However, in an internal memo, Nike wrote that the company "remains a constituent of the S&P 500, and this index change will not affect our business, strategy, day-to-day operations or our listing status."
In recent years, Nike's share price has remained under pressure. In November 2021, Nike's stock hit an all-time record of $161.91 per share, with a peak market capitalization of $280 billion. It has fallen steadily since then. As of the close on September 8, Nike's shares were down 0.78% from the previous day at $38.40 per share, with a latest market capitalization of about $56.5 billion, down nearly 80% from its historical high.
The latest financial report, released in June, showed full-year revenue of $46.4 billion for fiscal 2026, flat compared with the same period last year and down 2% at constant currency. Full-year revenue in Greater China fell 11% year on year to $5.847 billion, down 13% at constant currency.
After taking office in late 2024, Nike President and CEO Elliott Hill rolled out the "Win Now" turnaround plan, aimed at reviving brand momentum, stabilizing profit margins and re-energizing the consumer market.
In its April earnings report this year, the brand said the effectiveness of Nike's "Win Now" strategy had been validated across regions, and that the brand was moving further from a defensive "strategic reset" toward a full offensive phase "led by sport."
The S&P 100 comprises the 100 largest and most stable blue-chip stocks in the United States. Since being added in December 2008, Nike has held a place on the index for 18 consecutive years.
The announcement said, "These changes are being made to better align the indices with their respective market capitalization ranges."
Forbes believes that Nike's troubles stem from past strategic missteps, intense industry competition and weak performance in the Chinese market, which have steadily eroded what was once an impregnable competitive moat. Although management is actively pushing ahead with its turnaround, repairing wholesale channel partnerships and launching new products, the investment case for Nike has fundamentally changed — the sharp share price decline of recent years has reshaped investors' expectations for Nike, turning it from a growth stock into a potential contrarian investment.
Related coverage from LuxeCO:
- NIKE's Latest Fiscal Year Revenue of $46.4 Billion Flat Versus Prior Year; Latest Quarter Beats Analyst Expectations
- What Signals Does Nike's Latest Earnings Report Send?
｜Sources: SGB Online, Bloomberg, previous LuxeCO reports
｜Image: Nike official website
｜Editor: LuxeCO
