Nike’s swoosh has long been one of the most recognizable symbols in American sports, but investors are now looking at a historic stock collapse. Shares sank to their lowest closing price since 2014 on Monday after a yearslong decline erased roughly $200 billion in market value. The crash has given fresh ammunition to critics who warned that Nike was alienating customers by attaching its brand to Colin Kaepernick and other left-wing cultural causes.
The decline developed over several years and cannot be traced to one advertisement or controversy. Nike also pulled back from wholesale partners and poured resources into Nike Direct, expecting customers to buy through company stores and digital platforms. Rivals including Hoka, On, New Balance, and Adidas seized the opening while Nike’s direct-to-consumer operation began losing ground.
Nike’s cultural shift drew widespread criticism in 2018, when the company made Kaepernick the face of its 30th-anniversary “Just Do It” campaign following his national-anthem protests. The following year, Nike canceled a planned Fourth of July Air Max sneaker bearing the 13-star Betsy Ross flag after Kaepernick objected to the design. Republicans accused the company of insulting an American symbol to appease a political activist, while Senator Ted Cruz (R-TX) said the decision cost Nike his business.
As Trending Politics reported, Nike shares closed at $39.09 on August 17, roughly 78% below the company’s November 2021 all-time closing high of $177.51. The collapse left the athletic-wear giant at a level it had not seen in 12 years. Market strategist Charlie Bilello described the plunge as the largest drawdown in Nike’s history as a public company.
Cruz responded to the latest sell-off Tuesday in a blunt X post. “Sad & predictable. @nike lost me at #2. For my whole life, I wore nearly 100% Nike for athletic wear,” he wrote, referring to a list of the company’s controversial decisions. “Kaepernick pissed me off, but when they cancelled the Betsy Ross shoe it showed that their marketing plan was America-hate. I went out & bought brand new shoes, shorts, t-shirts. Turns out I wasn’t the only one. #GoWokeGoBroke.”
The Betsy Ross sneaker had been scheduled for release before Independence Day in 2019, with the Revolutionary-era flag stitched on its heel. Nike said it pulled the product because of “concerns that it could unintentionally offend and detract from the nation’s patriotic holiday,” while Kaepernick reportedly told company officials that he and others considered the flag offensive because of its connection to an era of slavery. Then-Senate Majority Leader Mitch McConnell (R-KY) pushed back, saying, “If we’re in a political environment where the American flag has become controversial to Americans, I think we’ve got a problem.”
The political backlash has overlapped with serious operating problems inside the company. According to Nike’s fiscal 2026 fourth-quarter results, Nike Direct revenue fell 7% on a reported basis to $4.1 billion, including a 12% decline in digital revenue and a 7% drop at Nike-owned stores. Wholesale revenue, the channel Nike spent years de-emphasizing, increased 4% on a reported basis to $6.6 billion during the quarter.
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Nike named David Denton, formerly the chief financial officer at Pfizer and Lowe’s, as its new CFO effective August 17, the same day the shares recorded their 12-year closing low. The company said Denton would help oversee disciplined execution and capital allocation as management attempts to rebuild the business. CEO Elliott Hill acknowledged the difficult sales environment, saying, “While we continue to face top-line headwinds, we’re encouraged by progress in performance product and are focused on consistent execution, improved profitability and scaling our wins to realize our full potential.”