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Just Do It — Badly

AP Photo/Alan Diaz, File

"Woke" may not be the entire reason Nike, the athletic shoe maker, has been on a stock rollercoaster.  

But certainly has been on one: Nike stock started at $55 a share ten years ago, screaming to a peak of $170 five years ago before plunging to under $39.   There are a lot of reasons for this — rising inventories, shifting wholesale dynamics, and slowing demand in a dodgy economy.  

But whatever the reason, after five fairly dreadful years, Nike will be leaving the Standard and Poor's 100 ("S&P 100") index in two weeks:

Nike is set to leave the S&P 100 before U.S. trading opens on September 21, 2026, according to S&P Dow Jones Indices. The change was announced on September 4 as part of the index provider’s quarterly rebalance.

There was more to the decline than just "woke":

Among the strongest critics has been tech content creator Gregory Kennedy, who argued that Nike's troubles stem from management decisions rather than its products. In a widely shared post, Kennedy said the company became overly focused on data and short-term financial metrics while neglecting creativity, brand-building and long-standing retail relationships

According to Kennedy, Nike's leadership pushed aggressively into direct-to-consumer sales, prioritising its own website and digital channels over wholesale partners that had helped build the brand for decades. He argued that this strategy created opportunities for rivals such as Hoka and On Running to gain market share. Kennedy 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

 But make no mistake, it didn't help:

Tangentially, I'm sure Dylan Mulvaney isn't actually a Chinese Communist opponent to mess with American business — but if Mulaney were such a black operation, it'd be hard to guess what Mulvaney would do differently:

The company certainly staked out an aggressive position in the culture war:

It might not all  be bad news for Nike - the company is busy restructuring:

Nike (NYSE: NKE) stock is down 78% from its 2021 all-time high -- the steepest drop in the company's history. Sales remain under pressure, and there's no clear catalyst for a near-term rebound. 

But margins are stabilizing -- a sign that things are moving in Nike's favor as it continues its turnaround. If profitability continues to firm up and sales eventually recover, this could set up a rare chance to buy the world's leading footwear and sports apparel brand at a value price. 

Bad business?  Bad social choices?

Why choose?

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Ed Morrissey 11:00 AM | September 13, 2026
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