Why Nike Has Lost Around 75% of Its Value in Five Years

Why Nike Has Lost Around 75% of Its Value in Five Years

Nike was once one of the market’s strongest consumer brands, but slowing growth, rising competition and strategic mistakes have badly hurt investor confidence.

Nike shares have fallen roughly 75% from their 2021 peak, dropping from more than $177 per share to around $40 today.

One of Nike’s biggest problems has been slowing sales growth.

For years, Nike dominated the global trainer market. However, newer brands including On and Hoka, alongside established rivals such as Adidas and fast-growing Chinese brands, have taken market share.

China has been particularly difficult. Nike has now experienced eight consecutive quarters of declining sales in China, where domestic brands such as Anta and Li-Ning have become increasingly popular.

Nike has also struggled with its product strategy.

Under former CEO John Donahoe, the company focused heavily on selling products directly through Nike stores and its website. That meant reducing its reliance on retailers. But Nike later discovered that retailers were still extremely important for reaching customers.

At the same time, Nike relied heavily on older trainer ranges while competitors launched newer products that attracted consumers.

Excess inventory created another problem. Nike was forced to heavily discount products to clear stock, putting pressure on profit margins and weakening the brand’s premium image.

The company is now attempting a turnaround under CEO Elliott Hill. Nike is rebuilding relationships with retailers, investing in new products and focusing again on areas such as running.

There are early signs of improvement, but the recovery remains difficult. Nike generated $46.4 billion in revenue during its 2026 financial year, yet sales were still down 2% when currency movements are excluded.

For investors, the big question is simple: can Nike become a growth company again?