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Nike’s shoe doesn’t fit: How swoosh lost its edge?

By Sohail Khan 7 September 2026, 3:08 pm

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Business News›News›International›Global Trends›Nike’s shoe doesn't fit: How did the swoosh lose its winning edge?

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Nike’s shoe doesn't fit: How did the swoosh lose its winning edge?
Synopsis

Nike’s decline is raising questions about how the sportswear giant lost its competitive edge. Falling revenue, a collapsing market value, weaker China sales, inventory pressure and growing competition from Hoka, On, Adidas, Anta and Li Ning have challenged its dominance. CEO Elliott Hill is rebuilding wholesale, product innovation and regional strategies as Nike fights to restore growth and brand appeal.

Nike struggling with falling sales, China weakness and fierce sportswear competition worldwide

Nike is leaving the S&P 100 on September 21, a symbolic marker of how far the sportswear giant has fallen from its peak. The stock closed at $38.40 on September 4, its weakest level in about 12 years, after losing roughly half its value in a year and 76% in five years.

Nike was worth about $57 billion on September 4, down from roughly $264 billion at the end of 2021, while the S&P 100 gained 83% over the same period. The more difficult question is not why the stock has fallen, but why a company that once seemed to dictate where the sportswear industry was going is now struggling to keep up with it.

Also Read: From Nike to Starbucks, some American brands are losing aura in China

How waffle iron built the brand

Nike did not begin as Nike, or even as a shoe company in the conventional sense. In 1964, University of Oregon track coach Bill Bowerman and his former student Phil Knight started Blue Ribbon Sports with $500 apiece. Knight imported Japanese running shoes and sold them from the boot of his car at athletics meets. Bowerman, meanwhile, experimented relentlessly with footwear, including the famous waffle sole inspired by his wife's waffle iron.

The company became Nike in 1971. The Swoosh design cost it just $35. What followed was one of the great consumer-brand stories of modern capitalism. Nike understood earlier than many rivals that athletic footwear could become part performance equipment and part cultural identity. It attached itself to athletes, from runners to basketball stars, and then turned those relationships into products that people wanted even when they were nowhere near a sports field.

The Michael Jordan partnership was the defining example. Air Jordan helped transform the basketball shoe into a lifestyle product and established a template that Nike would repeat across sports.

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