Nike's Struggle for Dominance: A Decade of Decline
Nike, the largest athletic apparel and footwear company in the world by far, is struggling to maintain its market dominance. The stock has declined significantly, trading about 79% off its high and down 35% over the past decade.
According to analysts, Nike's management made a few missteps a few years ago that are still impacting the company today. The main issues were cutting off wholesale relationships and relying too much on its storied franchises.
This was a lethal combination because customers looking for great sportswear options weren't seeing Nike in stores. Management was too confident in its leading position and fan loyalty, but consumers ended up finding competing brands like Hoka (owned by Deckers Outdoor) and Brooks (owned by Berkshire Hathaway) in other stores.
The company has a new CEO, and it's now winding its way back to wholesale partners and innovation. So far, there are glimmers of a rebound, but performance is still under pressure. In the 2026 fiscal fourth quarter (ended May 31), revenue was down 1% year over year, driven by a 4% increase in wholesale.