Nike’s slump puts its Dow spot at risk

• Nike will exit the S&P 100 on September 21 after 18 years, driven by its 80% market value decline over the past five years
• As the lowest-weighted Dow component at 0.4% and worst 2025 performer, Nike is considered a likely removal candidate, though no mechanical deletion rule exists
• The Dow's highest-priced stock (Goldman Sachs at $968) trades at roughly 27 times Nike's share price, well above the 10x threshold monitored by the selection committee

Nike's Dow Jones Index Position at Risk After S&P 100 Exit

Nike faces potential removal from the Dow Jones Industrial Average following its confirmed exit from the S&P 100 index before trading begins on September 21, 2025. The sportswear giant has been in the S&P 100 for 18 years.

Key Developments

Nike's market value has plummeted 80% over the past five years due to slowing sales, lack of innovation, and increased competition from emerging brands. The company now holds the smallest weight in the 30-component Dow at just 0.4% and is the index's worst performer this year.

Since joining the Dow in 2013, Nike initially more than quadrupled in value, but recent struggles have made it a prime candidate for removal. The index weights components by stock price rather than market cap, and Goldman Sachs—the top-weighted stock at around $968—trades at approximately 27 times Nike's current price.

Index Mechanics

The Dow has no mechanical deletion rules or set timeline for changes. Decisions rest with the Averages Committee, comprising three S&P Dow Jones Indices representatives and two from the Wall Street Journal. Recent Dow exits include Verizon (June 2025 after 22+ years), Intel, Dow Inc., and Walgreens (all in 2024).

Company Response

CEO Elliott Hill, who rejoined Nike in 2024 to lead a turnaround, acknowledged a "more complex macro environment" with pressure on consumer traffic and discretionary spending. Analysts note Nike has lost appeal outside a few key franchises.

Market strategists describe removal odds as "much higher over the next year," though timing remains uncertain as changes are made on an "as-needed basis."