Nike is reassuring employees and executives that it remains a member of the S&P 500 after news that the sportswear giant will be removed from the narrower S&P 100 index later this month. The distinction matters because the index change has been interpreted by some as a more severe demotion than it actually is, even as Nike confronts a prolonged decline in its market value and struggles to restore growth.
S&P Dow Jones Indices announced last week that Nike will leave the S&P 100 before trading begins on Sept. 21 as part of the benchmark’s quarterly reshuffle. The company will remain in the broader S&P 500, meaning investors tracking that widely followed index will continue to hold Nike through index funds.
The S&P 100 consists of 100 of the largest and most established companies within the S&P 500. Nike’s departure therefore reflects its decline in relative market capitalization rather than an outright removal from the large-cap benchmark. The company is being replaced in the S&P 100 alongside Honeywell Aerospace, Simon Property Group and Colgate-Palmolive, while Dell Technologies, Palo Alto Networks, Arista Networks and SanDisk are being added.
For Nike, however, the symbolic significance is difficult to dismiss. The company has spent nearly 18 years in the S&P 100, a period during which its brand became one of the most recognizable names in global consumer markets. Its market capitalization has fallen dramatically from its 2021 peak, reflecting weaker sales, changing consumer preferences and increased competition in athletic footwear and apparel.
Nike shares recently traded around $38, near their weakest levels in more than a decade. The company’s market value was about $57 billion in early September, compared with roughly $280 billion at its 2021 peak.
The index change comes as Chief Executive Officer Elliott Hill attempts to revive the company’s fortunes. Hill returned to Nike’s top job in 2024 after spending decades at the company, taking over as it confronted slowing demand, an overreliance on established franchises and criticism that its product pipeline had lost momentum.
His turnaround strategy has emphasized performance sports and a closer focus on athletes rather than relying heavily on lifestyle products. Nike has reorganized parts of its business around individual sports including running, basketball, football and training, with the goal of improving product innovation and making the brand more relevant to consumers.
There are some early signs of improvement, but the recovery remains incomplete. Performance categories have shown stronger momentum, while Nike has been working to rebuild relationships with wholesale retailers after years of emphasizing its direct-to-consumer business. The company is also introducing new products as it attempts to create fresh demand and regain market share.
The S&P 100 reshuffle nevertheless illustrates how much ground Nike has lost. All four companies entering the index are technology names, highlighting the growing dominance of technology and artificial intelligence-related businesses among America’s largest publicly traded corporations. Dell, Palo Alto Networks, Arista Networks and SanDisk are collectively more representative of the market’s current emphasis on computing infrastructure, cybersecurity and AI investment than Nike’s consumer-focused business.
Nike’s continued S&P 500 membership means the immediate financial consequences are more limited than the headline might suggest. S&P 500 index funds do not need to sell Nike simply because the company is leaving the S&P 100. The main passive-investment flows affected by the change will come from funds tracking the smaller S&P 100 benchmark.
Still, the announcement provides another measure of Nike’s changing position on Wall Street. Being removed from the S&P 100 does not threaten the company’s status as a major publicly traded corporation, but it does underline how dramatically its valuation has changed relative to the largest companies in the US market.
That makes the timing particularly important for Hill. Nike does not need to regain its S&P 100 position to succeed, but it does need to demonstrate that its business can return to sustainable growth. A successful turnaround would depend less on index membership than on restoring innovation, winning back consumers, rebuilding wholesale partnerships and reversing the market-share losses of recent years.
For now, Nike remains firmly inside the S&P 500, but the message from the S&P 100 reshuffle is unmistakable. One of America’s most valuable consumer brands has slipped down the hierarchy of corporate America, and its next challenge is proving that the decline is temporary rather than a lasting change in its competitive position.
