Nike Is Being Deleted From the S&P 100. Is Its Seat in the Dow Jones Industrial Average in Jeopardy?

Nike (NKE) has been removed from the S&P 100 effective September 21 as part of the index's quarterly rebalancing, marking a sharp fall from prominence for the athletic apparel giant. The stock is trading at 12-year lows, while revenue and earnings are both declining and operating margins are plummeting. The removal comes as NKE now holds the dubious distinction of being the lowest-ranked component in the Dow Jones Industrial Average, raising questions about whether its seat in that blue-chip index could be next on the chopping block.

The company's fundamental deterioration has been severe enough to trigger its ejection from the S&P 100, an index reserved for the largest and most liquid U.S. companies. With margins collapsing and top-line growth reversing, Nike faces mounting pressure to demonstrate that its turnaround efforts can gain traction before further index exclusions follow.