NIKE, Inc. (NYSE:NKE)'s falling share price is putting its place in the Dow Jones Industrial Average at risk. Reuters reported that Nike's stock was around $36, giving it just a 0.4% weighting in the price-weighted Dow, the smallest among its 30 components. Nike has gained only about 5% since joining the Dow in 2013, while its market value has fallen roughly 80% over the past five years. Reuters also noted that Nike is set to leave the S&P 100 after 18 years, reflecting the deterioration in its market value and operating performance. The Dow has no fixed removal rule, but a very low share price has historically been an important factor in index changes.
The weakness in the stock reflects underlying business pressures rather than the index issue alone. Nike's fiscal 2026 revenue was $46.4 billion, essentially flat from $46.3 billion a year earlier and down from $51.4 billion in fiscal 2024. Net income fell to $3.1 billion from $5.7 billion two years earlier. Nike Direct revenue declined 6% in fiscal 2026, while digital sales fell 12%.
Nike Could Rebound if its Turnaround Gains Traction
NIKE, Inc. (NYSE:NKE)'s depressed valuation and share price could give management greater room to ...