What has gone wrong at Nike? How the world's sportswear giant lost its edge

Nike, the world's biggest sportswear brand, is fighting to reclaim its position after a bruising few years. The company has seen its share price tumble by 75% over five years, hundreds of billions of dollars wiped from its market value, and last month it was ejected from the S&P 100 index of America's largest companies. Industry veteran Elliott Hill, coaxed out of retirement to lead Nike's turnaround, announced quarterly revenues of $11 billion — below analyst expectations. The latest blow came when football superstar Kylian Mbappé ended his 20-year relationship with Nike to join fast-growing Swiss brand On, a departure that raises questions about Nike's ability to attract the world's biggest stars.

How Nike lost its way

Analysts point to several strategic errors under former CEO John Donahoe, the ex-eBay boss who pivoted Nike toward online direct-to-consumer sales, cutting ties with traditional retailers. Critics say this approach starved the brand of innovation, with research and development cash spent on digital operations instead of new products. As limited-edition sneakers became more widely available, they lost their desirability. Competitor brands On and Hoka moved into the shelf space Nike had vacated, and challengers like Adidas snapped up high-profile athlete endorsements.

Can Nike recover?

Industry analyst Matt Powell believes Nike will remain the world's top sportswear brand but will not regain its former near-monopoly position. Hill's turnaround plan, branded Sport Offense, focuses on reinvigorating innovation and rebuilding retail relationships. Mbappé's move to On echoes the early days of Michael Jordan's partnership with Nike — a bet on innovation over establishment. Nike still boasts partnerships with Rory McIlroy and Vinicius Junior, but the loss of Mbappé and World Cup winner Lamine Yamal to Adidas signals that rivals are closing the gap.