Nike drops from S&P 100 after 18 years as stock falls 76% and Mbappé joins rival On

Index removal and athlete departures

Nike was removed from the S&P 100 index of the largest United States public companies after 18 consecutive years on the benchmark. The exclusion occurred three days after French footballer Kylian Mbappé ended his 19-year relationship with the brand to sign an endorsement contract with Swiss competitor On. Mbappé had featured in Nike's advertising spot for the 2026 World Cup with a bicycle kick, leaving three months later and terminating a sponsorship worth over €20 million. The loss of Mbappé follows Roger Federer's 2018 departure from Nike to become a shareholder and partner in On. Between 2021 and October 2026, Nike shares lost 76% of their value, erasing more than £150 billion in market capitalization.

Revenue contraction and international markets

For the fiscal quarter ending 31 August 2026, Nike reported a 4% drop in total sales to $11.2 billion (€9.95 billion). Footwear sales, which account for over 60% of group revenue, fell 6% to $6.951 billion (€6.16 billion). Equipment revenue dropped 3% to $611 million, while apparel recorded a 2% gain to $3.384 billion. The decline was concentrated in China, Nike's third-largest regional market after North America and EMEA, where sales dropped 22% to $1.18 billion, or 26% at constant exchange rates. China accounts for approximately 15% of annual revenue. Bloomberg analysts noted that domestic Chinese sales remained below potential demand, coinciding with a broader European luxury and apparel downturn where Hermes dropped 38.76% and LVMH fell 41.3% year-to-date.

Restructuring under the Pace program

To counter the prolonged revenue slide, chief executive officer Elliott Hill announced the Nike Pace restructuring program, aimed at cutting $2.5 billion (€2.22 billion) in operating costs. Hill assumed leadership in October 2024, telling staff that Nike must return to its identity as a sports company focused on athletes and product performance. Hill has requested an additional year from shareholders to carry out the operational adjustments. The Pace plan includes modernizing supply chain systems, reorganizing corporate leadership across three international territories, and establishing a new campus in India. The company confirmed that workforce adjustments will occur, though the total number of layoffs remains undecided.

Industry shifts and branding evolution

Nike's market position has shifted substantially since 1984, when founder Phil Knight signed Michael Jordan to a $600,000 annual deal before his NBA debut. The Air Jordan line generated over $100 million by the end of 1985, with Jordan later earning over £1 billion through his 5% royalty on sales. Jordan described the scope of that commercial collaboration.

What Phil and Nike did was turn me into a dream.

According to Bank of America calculations, sneakers expanded from 20% to 50% of the global footwear market over two decades as informal workplace dress gained prominence. At their peak, Nike was valued at €245 billion, Adidas at €61 billion, and Puma at €16.1 billion. Together, those three brands have lost €250 billion in market capitalization from their peaks. Nike's global footwear market share dropped from 29.2% in 2022 to 23.4% in 2025 as specialized brands such as On, Hoka, Anta, and Li Ning captured market share.