Nike’s prolonged share-price decline is putting renewed attention on its position in the Dow Jones Industrial Average, even as the sportswear company works through a broader turnaround. The company is already scheduled to leave the S&P 100 on September 21 after 18 years, while its low share price and minimal weighting in the Dow have raised questions about whether another index change could follow.

Nike’s Market Value Has Deteriorated Sharply

Nike’s shares have fallen more than 43% in 2026 and recently reached their lowest level in 12 years. Reuters reported that the company’s market value has declined approximately 80% over the past five years, with analysts pointing to slowing sales, limited product innovation and stronger competition from newer sportswear brands as factors behind the deterioration.

The weakness has significantly altered Nike’s position among major U.S. equities. The company’s shares were recently trading around $36, and its stock has gained only about 5% since its inclusion in the Dow in 2013. Over the same period, the S&P 500 has more than quadrupled, illustrating the extent of Nike’s relative underperformance over the longer period.

Why the Dow Position Has Become an Issue

The Dow differs from broader benchmarks such as the S&P 500 because it is price-weighted. Consequently, a company’s influence in the index depends on its share price rather than its total market capitalization. Nike currently has the smallest weighting among the Dow’s 30 components, at approximately 0.4%, according to Reuters.

There is no automatic rule requiring the removal of a Dow constituent when its share price or market capitalization falls below a specific threshold. Changes are made by the Averages Committee, consisting of representatives from S&P Dow Jones Indices and The Wall Street Journal, and can occur when the committee determines that market or corporate developments warrant an adjustment.

Recent Dow Changes Highlight Share-Price Sensitivity

Recent index changes provide context for Nike’s situation. Verizon was removed from the Dow in June and replaced by Alphabet, with S&P Dow Jones Indices citing Verizon’s low share price as a factor. Reuters’ analysis of the last 10 Dow changes since 2013 found that at least half involved the component with the smallest weighting at the time of removal.

The disparity between Dow constituents has also become pronounced. Goldman Sachs, currently the highest-priced Dow component, was trading around $968, approximately 27 times Nike’s share price. The methodology monitors such differences, although there is no predetermined timetable for removing a constituent.

Turnaround Efforts Remain Central to Nike’s Outlook

The index issue is ultimately linked to Nike’s underlying business performance. CEO Elliott Hill returned to the company in 2024 to lead a turnaround, with management acknowledging pressure on consumer traffic and discretionary spending across its markets. Analysts cited by Reuters have also questioned whether Nike’s products remain as appealing to consumers outside several key franchises as they were previously.

For investors, the more important consideration remains whether Nike can stabilize sales, strengthen product innovation and rebuild market share. A stronger operating performance could eventually improve the share-price dynamics that have raised questions about its index membership, although Dow changes remain discretionary rather than mechanically triggered by a stock-price threshold.

Looking ahead, markets will monitor Nike’s revenue trends, product launches, margins, consumer demand and progress under its turnaround strategy. The company’s upcoming removal from the S&P 100 provides an immediate benchmark change, while its continued position in the Dow will depend on decisions by the Averages Committee and developments in Nike’s market performance. The broader issue for shareholders is whether the company can convert its restructuring efforts into sustainable operating improvement and restore its standing among large-cap U.S. companies.