Nike to Exit S&P 100 as Shares Sink Near 12-Year Low
Nike will be removed from the S&P 100 on Sept. 21 after its stock fell to about $38-$40, the lowest level in roughly 12 years.
Nike’s removal from the S&P 100, effective Sept. 21, marks the end of an 18-year tenure as the stock trades around $38-$40, its lowest point in about 12 years and a 75% drop from its 2021 high. The index is also cutting Honeywell Aerospace, Simon Property Group and Colgate-Palmolive, replacing them with tech-focused firms like Dell Technologies, Palo Alto Networks, Arista Networks and Sandisk. Analysts point to flat sales growth, narrowing gross margins and difficulties in the Chinese market, but also highlight strategic missteps such as appointing a finance-focused chief executive and altering long-standing partnerships.
Nike’s once-dominant cultural cachet, built on high-profile athlete endorsements and disruptive branding, has faded as consumer tastes shift and digital marketing lowers barriers for rivals. Despite the setback, Nike remains in the S&P 500 and retains strong brand recognition, leaving a path for recovery if it can boost revenue, resolve China-related issues and revive profit margins.
Why it matters
Nike's exit signals a shift toward tech firms in major indexes and highlights challenges for legacy consumer brands.
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