{
  "id": 6147765,
  "title": "Nike’s shoe doesn’t fit: How the Swoosh lost its edge?",
  "url": "https://urgent.news/2026/09/07/nikes-shoe-doesnt-fit-how-the-swoosh-lost-its-edge",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-07T09:38:18.000Z",
  "source": {
    "name": "The Economic Times",
    "slug": "the-economic-times",
    "url": "https://economictimes.indiatimes.com/news/international/global-trends/nikes-shoe-doesnt-fit-how-did-the-swoosh-lose-its-winning-edge-nike-sale-tock-sp-sports-shoes-market-china-adidas/articleshow/133873218.cms"
  },
  "original_language": "en",
  "account": "Nike's iconic brand, once synonymous with athletic excellence and innovation, is losing its edge, as evidenced by its recent departure from the S&P 100 index on September 21. The company's stock price has plummeted from $57 billion in 2021 to $38.40 in September 2024, a decline that has outpaced the broader market's 83% growth over the same period. This downturn raises the question: why has Nike, a brand that once dominated the sportswear industry, struggled to keep up with competitors?\n\nFounded in 1964 by Bill Bowerman and Phil Knight, Nike began as a humble import business that evolved into a global powerhouse. The company's breakthrough came with the introduction of the waffle sole, inspired by a waffle iron, which revolutionized athletic footwear. Nike's success was fueled by strategic partnerships with athletes, most notably Michael Jordan, who helped transform the basketball shoe into a cultural phenomenon. However, the formula that once propelled Nike to unprecedented heights began to lose its potency.\n\nIn recent years, Nike's revenue has stagnated, growing from $37.4 billion in 2020 to $51.4 billion in 2024, but then slipping back to pandemic-era levels. The company's market capitalization has plummeted from $264 billion to $57 billion, pushing it out of the top 100 largest US listed companies. Investors have shown impatience with CEO Elliott Hill's turnaround efforts, with Nike's shares down by nearly 35% in the first half of 2026.\n\nOne of the primary reasons for Nike's decline lies in its inability to innovate and adapt to changing consumer preferences. Competitors such as On, Hoka, and Adidas have successfully carved out niche markets by offering unique products that cater to specific consumer demands. Nike, on the other hand, has struggled to differentiate its offerings, allowing these rivals to gain ground. For instance, Hoka has transitioned from a specialist brand to a mainstream premium choice, while On has built a reputation for its distinctive CloudTec designs.\n\nMoreover, Nike's direct-to-consumer strategy, initiated under former CEO John Donahoe, aimed to increase control over customer relationships. However, this approach inadvertently weakened Nike's relationships with wholesale retailers, leading to a fragmentation in the customer discovery and purchase process. The shift to digital platforms did not generate sufficient incremental demand to offset the loss of wholesale momentum.\n\nDespite these challenges, Nike remains a massive entity with substantial revenue, but its size has become a double-edged sword. The company's inability to innovate and adapt has left it vulnerable to competitive threats. As Nike continues to navigate its strategic pivot, the question remains: can it rediscover the formula that once made it a sportswear icon?",
  "summary": null,
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}