Nike, the global sports brand, is set to be removed from the S&P 100 Index. Its share price has fallen approximately 80% from its record high, while about $226 billion has been wiped off its market capitalization. The decline in its China business was the spark, with Greater China sales falling approximately 30% over five years.
Nike, the global sports brand, is expected to be removed from the S&P 100 Index and will no longer be included among its constituents.
The company's share price has fallen approximately 80% from its 2021 record high, wiping about $226 billion (approximately ¥35 trillion) off its market capitalization. Weakness in the Chinese market is cited as a major factor.
In China, Greater China sales declined approximately 30% over the past five years, while China's sportswear market grew by more than 50%. The restructuring of digital distribution, the rise of local brands and the spread of livestream commerce are cited as contributing factors.
In China, brand choices shaped by patriotic consumption are influencing market trends, and some observers believe Nike's position in the market is being undermined by the rise of Chinese brands such as Li-Ning. Going forward, the survival or failure of companies highly dependent on the Chinese market will become a new management challenge.