Nike’s Walk on the Woke Side Just Cost the Company Its Place in the S&P 100

Last month, I reported that Nike shares had closed at $40.18 — a 12-year low — on the New York Stock Exchange. A JP Morgan analyst had just downgraded the company from “neutral” to “underweight,” warning that Nike’s “Win Now” turnaround strategy “will likely drag on earnings through at least fiscal 2028.”

In the three weeks since that bearish revision, Nike shares have languished near that level, hitting a new closing low of $38.40 on Friday. Since reaching an all-time closing high of $177.51 five years ago, the stock has shed nearly 80% of its value.

Companies eventually pay a price for that kind of performance. So, few were surprised when index provider S&P Global announced that Nike would be removed from the S&P 100 as part of its quarterly rebalancing. {snip}

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{snip} In 2018, Nike went all in on woke marketing.

Nike paid millions to former NFL quarterback Colin Kaepernick, who was more famous for kneeling during the national anthem to protest systemic racism and police brutality than for his football prowess. {snip}

At the same time, Nike made diversity, equity, and inclusion a central pillar of its hiring strategy, dramatically expanding its ranks of DEI-focused personnel. The new DEI hires abandoned — or perhaps were not even aware of — the formula that had propelled Nike to the top of the sportswear industry.

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