From OutKick · Austin Perry · · 1m 20s
Nike's fall from the S&P 100, explained
Nike just got dropped from the S&P 100 after 18 years, and OutKick's panel has theories about who the company lost.
In brief
Nike just got dropped from the S&P 100 after 18 years, and OutKick's panel has theories about who the company lost. Nike's slide is less about one bad decision than a stack of them: no new ideas, burned retailers, fresh rivals, and an alienated core customer. Originally reported by OutKick.
Dropped from the S&P 100
Effective Sept. 21, Nike leaves the S&P 100 after an 18-year run. The slide behind it has erased roughly $200 billion in market value.
Mocked for the jerseys
A low-effort NBA jersey series got shredded online, the kind of public ridicule a company known for design is not supposed to attract.
“It's no secret at this point that Nike is taking a nosedive.”
Coasting like Disney
Dan Zaksheske sees complacency more than anything. A brand built on invention stopped inventing and started living off its back catalogue.
“They're just resting on their laurels. They're not creating anything new.”
They ditched the stores
Jason Hammer, citing Fox Business's Taylor Riggs, points to the direct-to-consumer bet. Nike pulled back from retailers right as post-COVID shoppers wanted to walk into a store again.
“They gave a middle finger to the retailers.”
It's not just Adidas anymore
Dakich's own answer is competition. Athleta and Lululemon are booming, so the old two-horse choice between Nike and Adidas is gone.
“It used to be Nike or Adidas, which one are you going to buy?”
The customer they lost
Dakich argues Nike insulted the people actually doing the buying. Women, he says, walked away, and the brand's messaging is what pushed them out.
“Women have said, 'Bulls, -, don't insult us,'”
The short version
Nike's slide is less about one bad decision than a stack of them: no new ideas, burned retailers, fresh rivals, and an alienated core customer.
