Nike faces potential removal from the Dow Jones Industrial Average. The stock recently traded around $36. This price represents the smallest weighting in the price-weighted index. Historically, such low weightings have preceded company removals from the benchmark.
The sportswear giant is the Dow’s worst performer this year. Shares have lost a substantial portion of their market value since peaking in 2021. The S&P 100 removed Nike from its index effective September 21.
Analysts attribute the slump to slowing sales and a lack of product innovation. Intensifying competition from rival brands has further eroded market share. These challenges lead investors to doubt Nike’s spot in the 30-stock blue-chip index.