Nike is one of the biggest names in sportswear, but even giants can stumble. Since 2021, Nike’s stock price has been on a rocky path, and by 2025 it’s well below its peak. So what happened?
Supply Chain Snags
Remember the pandemic shipping mess? Nike was hit hard with factory shutdowns in Vietnam and shipping delays that raised costs and slowed deliveries.
China Troubles
China used to be one of Nike’s strongest markets, but in recent years sales there have dropped. Local brands are gaining traction, and the slowing economy hasn’t helped.
Too Much Inventory
Nike ended up with piles of unsold shoes and apparel. To clear it out, they had to discount products, which cut into profits.
Shifting Strategy
Nike is trying to sell more directly to customers through its website and stores, while pulling back from some wholesalers. It’s a smart move long-term, but the transition has been bumpy.
Competition & Costs
With rivals like Adidas, Puma, and even smaller lifestyle brands grabbing attention, Nike faces stiff competition. Add in higher shipping, labor, and tariff costs, and profits have been squeezed.
The Bright Side
Nike isn’t down for the count. The company is refocusing on core sports like running and basketball, trimming back excess inventory, and investing in digital sales. If tariffs ease and consumer spending holds up, the Swoosh could bounce back.
For now though, Nike’s stock story from 2021 to 2025 is a reminder that even the most iconic brands can’t outrun global challenges. BJ 😟