Nike Gets Booted From S&P 100 After Losing 80% of Its Value
Nike (NKE) will be removed from the S&P 100 on Sept. 21 after an 18-year run, with its stock down 75% over five years. Q4 FY26 earnings included a one-time $986M benefit, with underlying EPS at $0.20. Revenue declined to $46.4B in FY26, and management expects further declines. Analysts have cut fiscal 2027 EPS estimates to $1.72. Morgan Stanley resumed coverage with an Underweight rating and $31 target.
How this was made
The 30-second read
Why it matters
The combination of index removal and weaker FY27 revenue guidance intensifies bearish sentiment, likely prompting fund rebalancing and short‑term price pressure.
Market read
Nike's index removal and earnings guidance cut are likely to affect large‑cap index funds and sector sentiment.
What to watch
Potential cost‑saving measures and upcoming product launches could mitigate the downside.
Background
Nike's long‑term decline, especially in Greater China and digital channels, has led to index removal and guidance cuts.
Ticker impact
Nike will be removed from the S&P 100 on Sept. 21 after a 75% five‑year decline and FY26 earnings guidance cut.
Potential further sell‑off, especially in index‑fund holdings.
Removal from a major index forces fund rebalancing; guidance cuts signal deteriorating fundamentals.
Market effects
Athletic‑apparel sector faces heightened scrutiny as Nike's decline may pressure peers.
U.S. large‑cap index funds will need to adjust holdings, modest impact on broader market.
Global investors tracking the S&P 100 will see portfolio shifts.
Counterpoint
If Nike can stabilize China sales, the index removal may be a short‑term technical event with limited long‑term impact.
Key entities
- companyNike
Global athletic‑apparel maker being dropped from the S&P 100.
- companyDeckers Outdoor
Mentioned as a potential alternative exposure.
- companyOn Holding
Mentioned as a potential alternative exposure.
