Nike to Be Removed from S&P 100 After Stock Falls 78% from Peak

[Financial News] Nike, once regarded as a blue-chip company, will be removed from the Standard & Poor’s (S&P) 100 index as its stock price continues to decline.
According to Forbes and other sources on the 7th local time, Nike’s stock price stood at $38.4 per share, down 78% from its 2021 peak. Its market capitalization was $57 billion, approximately KRW 76.7 trillion, shrinking to about one-fourth of the $264 billion recorded at the end of 2021.
Nike once boasted an unrivaled position in the sportswear industry, but it has recently been losing ground as Adidas recovers market share and emerging premium brands such as ON and Hoka continue to grow.
Nike’s share of the global sports footwear market fell from 25.9% in 2022 to 22.9% last year.
Weakness in the Chinese market also played a role. Chinese consumers who prefer premium sports footwear brands are shifting to ON and Hoka, while local brands are simultaneously targeting consumers with lower prices.
As a result, sales in China, which accounted for 15% of Nike’s annual revenue, declined for eight consecutive quarters. In the latest fiscal year, sales in North America rose 5%, but sales in Greater China fell 13% even after excluding currency effects.
Uncertainty also remains over the adverse impact that tariffs, trade disputes, and other factors could have on the business.
Against this backdrop, S&P also announced that it would remove Nike from the S&P 100 on the 21st.
The S&P 100 tracks 100 blue-chip companies in the U.S. stock market, and Nike had been included in the index for 18 years.
The changes to the S&P 100 reflect how traditional retail companies are being pushed aside as technology companies take the lead in the stock market. Dell Technologies, SanDisk, Palo Alto Networks, and Arista Networks are scheduled to be newly added to the S&P 100.


[email protected] International Affairs Correspondent Lee Seok-woo Reporter