Nike’s S&P 100 exit: Strategic blunders, fierce rivals and road to recovery, according to experts

After 18 long years, Nike is stepping out of the S&P 100. The sportswear giant, one of Wall Street's most exclusive groups of top companies, will leave the most closely watched blue-chip indexes before US markets open on 21 September.

The move comes after S&P Dow Jones Indices announced changes to the benchmark as part of its quarterly rebalance.

Honeywell Aerospace, Simon Property Group and Colgate-Palmolive are also stepping down from the S&P 100, making room for tech-focused companies like Dell Technologies, Palo Alto Networks, Arista Networks and Sandisk.

While Nike will still remain in the broader S&P 500, its removal from the top 100 has sparked a major conversation about the brand's recent struggles.

What do experts say about Nike's S&P 100 exit?

Many experts blame Nike's poor management choices rather than bad products for the company's current struggles.

Tech content creator Gregory Kennedy, one of the strongest critics, noted that Nike became obsessed with data and short-term profits and neglected creativity, brand-building and long-standing retail relationships.

By pushing hard into direct online sales and ignoring the traditional retail partners that helped build the brand over the decades, Nike, according to Kennedy, left the door open for new competitors like Hoka and On Running.

The tech expert also claimed that an excessive focus on measurable marketing results came at the expense of brand advertising, weakening Nike's connection with consumers over time.

Business writer Trung T Phan highlighted Nike's massive drop in value since its 2021 peak, MoneyControl reported.

Noting the sharp fall in the company's market capitalization from its 2021 peak, Phan pointed out the criticisms from former Nike executive Massimo Giunco, who argued that former CEO John Donahoe focused too heavily on digital marketing and short-term efficiency.

This shift toward digital performance campaigns ultimately hurt Nike's retail presence and weakened its true understanding of what customers actually wanted to buy, as it cut back on specialized product teams.

According to Phan, these changes may have improved short-term efficiency but weakened the company's understanding of customer demand and damaged its retail presence.

Cultural disconnect

Some experts feel the brand simply lost touch with its core audience. Marketing professor Gad Saad summarised this view with the phrase “Get woke, Go broke”. He suggested that Nike's social and cultural messaging alienated parts of its customer base.

Conservative commentator Benny Johnson agreed, saying that this dramatic fall from the S&P 100 proves there is a deep disconnect between the historic brand and everyday shoppers. He described Nike's removal from the S&P 100 after 18 years as evidence of a dramatic fall for what was once one of the world's most influential consumer brands.

However, many business analysts push back against this, arguing that poor retail execution, rather than politics, is the real root of the problem.

Looking towards a comeback

Despite the heavy criticism, some experts believe the future is not entirely dark for the sportswear giant.

Indian entrepreneur Sudheesh Nair pointed out that critics are too focused on past mistakes and are ignoring recent signs of life. Under the guidance of new CEO Elliott Hill, Nike is already reversing some of those unpopular sales strategies, and its running shoe business is showing solid growth in North America again.

Yet, the road ahead will not be easy. Sudheesh added that Nike's biggest hurdle moving forward might no longer be its internal marketing decisions, but rather fierce competition in China.

Popular local brands like Anta and Li-Ning are successfully winning over buyers with high-quality products and strong regional appeal, making them tough rivals for Nike, he said.