Nike leaving the S&P 100 is a China problem

What happened Nike is losing its place among America’s largest corporations as a prolonged downturn pushes the sportswear giant out of the S&P 100 for the first time in nearly two decades. Departure takes effect September 21, after a slide that cut Nike’s market value roughly 78%, from a November 2021 peak of $264 billion to about $57 billion, according to Fortune. Market capitalization has fallen 36% in 2026 alone. Nike will remain in the broader S&P 500. Declining performance reflects mounting pressure on Nike’s core business. Fiscal 2026 revenue was flat on a reported basis at $46.4 billion and down 2% on a currency-neutral basis, while fourth-quarter revenue in Greater China fell 12% as reported, or 17% currency-neutral. The company said it expects revenue to decline by a low- to mid-single-digit percentage through the first two quarters of fiscal 2027. Direct-to-consumer remains another weak point. Nike Direct revenue fell 6% to $17.7 billion on a reported basis, while wholesale revenue rose 6% to $27.5 billion. Both figures cover the Nike brand rather than the group, which also books about $1.2 billion from Converse. CEO Elliott Hill has responded by rebuilding wholesale relationships, cutting excess inventory and refocusing the business on performance products. The company said it has made structural improvements, but continued top-line pressure leaves the turnaround unfinished. Removal also reflects a broader shift in the S&P 100 toward technology and data infrastructure. Dell Technologies, Palo Alto Networks, Arista Networks and SanDisk take the vacated seats, all four moving up from the S&P 500. Honeywell Aerospace, Simon Property Group and Colgate-Palmolive leave alongside Nike. The Jing Take News of the S&P 100 removal comes as domestic brands take a growing share of China’s sportswear market. China remains one of the world's biggest markets for athletic apparel, but the companies best positioned to capture its next phase are domestic. Anta Sports, the country's largest homegrown sportswear group, reported record revenue of RMB 80.2 billion (US$12.0 billion) in 2025, up 13.3% year-on-year. In H1 2026, its revenue rose 12.9% to RMB 43.5 billion (US$6.5 billion). That growth reflects how Chinese brands have moved beyond competing mainly on price. Anta and Li-Ning have invested in performance technology, professional athletes and specialized categories such as running and outdoor sports. Anta has also built a portfolio of international brands, including Arc’teryx and Salomon through its stake in Amer Sports, which gives it access to categories where Nike is weaker. The competitive shift is also cultural. Younger Chinese consumers have embraced “guochao” (国潮), a movement that puts Chinese identity and design at the center of consumer choices. Domestic brands have benefited from that change while building stronger connections through Chinese digital platforms and local marketing. In China, Nike is still the largest foreign sportswear brand by revenue, but it no longer leads the market. Anta said its share of China’s sportswear market reached about 21.8% in 2025, citing an unnamed international research firm, and that it remained the industry leader. Signs of stabilization have appeared in Nike’s China business, but the recovery remains fragile. Management pointed to better in-season sell-through, lower discounts and improving full-price realization online, even as fourth-quarter revenue in the region fell again. Adidas, by contrast, has gained momentum, with Greater China revenue up 15% on a currency-neutral basis in the second quarter of 2026 after 17% growth in the first. Lululemon’s China mainland revenue rose 4% as reported in its second quarter but fell 2% in constant currency, with comparable sales down 8%. That divergence points to a broader shift. International brands now face local competitors that have closed much of the gap on performance and design, and Chinese consumers have rewarded them for it. For Nike, competing on those terms means China-specific product, retail and partnerships — a heavier commitment than the market once demanded, and one it is making from a weaker position than at any point in two decades.

Nike leaving the S&P 100 is a China problem

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Nike leaving the S&P 100 is a China problem

How Bottega Veneta weaved China’s forever it bag