Nike Faces Dow Exit as Share Price Plummets Amid Sales Struggles
Nike's spot in the Dow Jones Industrial Average is under threat after a steep decline in its share price. The sportswear giant has been in the index since 2013 and saw its market value fall by 80% over the past five years, causing analysts to predict it may be removed.
The S&P Dow Jones Indices announced that Nike will be dropped from the index on September 21 as part of a quarterly rebalancing. According to Josh Bischoff, partner and head trader at TimesSquare Capital Management, 'Just looking at it historically, it probably is a candidate for removal.'
Nike's share price currently stands at $36, making it the smallest factor in the price-weighted Dow index. The company has struggled with slowing sales due to lack of innovation and competition from upstarts.