Nike ousted from S&P 100

Nike’s grip on pricing power is slipping just as competition heats up. Removed from the S&P 100 and hit with a 44% fair value cut by Morningstar, the brand is facing real pressure: Q1 FY27 revenue fell 4%, and CFO David Denton is guiding for a high single-digit decline this year. With excess inventory piling up—especially in Sportswear and Jordan—and discounts everywhere from Wired’s promo codes to retailer markdowns, Nike’s old playbook of “make it scarce, keep it hot” is colliding with harsh market realities.

But there’s a twist. Nike’s doubling down on premium moves, adding LVMH’s Alexandre Arnault to its board for luxury know-how and running in-person, exclusive drops to stoke demand. Meanwhile, CEO Elliott Hill admits they oversupplied key retro products and vows to cut inventory, targeting a return to true scarcity. The challenge: you can’t promote non-stop and claim scarcity, and wholesale partners stuck with old stock may suffer most as Nike tightens supply.

Recovery hinges on execution in China and a tricky balance between performance products and lifestyle hype. If Nike can turn local design and supply control into full-price sales—without fueling more discount addiction—it could stabilize growth and margins. If not, competitors like Adidas and New Balance are waiting to pick up the slack. Featuring insights from Matt Powell and reporting from Morningstar, Jing Daily, and WIRED.

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