Nike Stock Plummets: $200 Billion Lost as Direct Sales Strategy Backfires
Nike's stock has been on a downward trend for four consecutive years, with its market cap declining by almost $200 billion since its peak. The company's shift in focus towards direct sales through its own stores and online platforms, led by former CEO John Donahoe, initially showed promise but ultimately backfired as competitors like Amazon and Hoka gained ground.
Nike lost significant market share to rivals, particularly in the Greater China region where sales plummeted 30% since 2021. The company faced backlash for its marketing campaigns and shoulder issues in national team kits during the 2026 FIFA World Cup, further damaging its brand image.
Under current CEO Elliott Hill, Nike is attempting a turnaround by revamping its marketplace strategy in China and cutting ties with thousands of online distributors while concentrating on its own channels. However, experts caution that there's no quick fix for Nike's woes, and the company faces challenges in increasing sales and margins concurrently.