Nike CEO May Have Just Admitted the Company Went Too Woke as Stock Hits 12-Year Low

 Nike CEO May Have Just Admitted the Company Went Too Woke as Stock Hits 12-Year Low

## The 33 Words That Might Be the Most Expensive Confession in Sports Business History

Let me tell you about a memo that will go down as one of the most consequential documents in Nike’s 62-year history.

It was **860 words long**. Sent to employees on **October 1, 2026**. And buried inside it were **33 words** that told you everything you need to know about how a company that once defined American cool ended up trading at **$33.87 a share** — its lowest level in over **12 years** .

**“Over the past year, we’ve put sport at the center of everything we do. We’re seeing encouraging signs of progress, but we have more work to do to win over the long term.”** 

Read that again. Slowly.

**“Over the past year, we’ve put sport at the center.”**

Not “we’ve always put sport at the center.” Not “sport is who we are.” **“Over the past year.”**

That’s not a mission statement. **That’s a confession.** It’s an acknowledgment — buried in corporate jargon, but unmistakable — that for years before this past year, Nike had stopped putting sport at the center. That something else had taken its place.

**And that something else cost Nike billions.**

---

## The Numbers That Tell the Real Story

### From $179 to $33: The 81% Collapse

**Frequently Asked Question:** *How bad is Nike’s stock decline?*

Let me put it in perspective.

**Nike’s all-time high:** **$179.10 per share**, reached in **November 2021** .

**Nike’s current price:** Around **$32 to $34 per share** .

**The decline:** **Over 81%** .

**Nike’s market value:** Has **more than halved** during CEO Elliott Hill’s tenure, which began in October 2024 .

**And it’s not just the stock price.** Nike was **dropped from the S&P 100** in September 2026 — a position it had held for nearly **18 years** .

**Frequently Asked Question:** *Is this just about the stock market, or is the business actually struggling?*

**It’s the business.**

Nike’s revenue has been declining across both **wholesale and direct channels** . The company just announced **another round of job cuts** — its third in two years — and forecast **steeper-than-expected declines** in sales and profit through fiscal 2028 .

**CEO Elliott Hill’s own words to employees, leaked to Bloomberg:** **“I’m so tired, and I know you are, too, of talking about fixing this business”** .

That’s not a CEO projecting confidence. That’s a CEO who’s exhausted.

---

## The “Woke” Question: What Critics Are Saying

### The Marketing Decisions That Sparked Backlash

**Frequently Asked Question:** *What exactly are critics pointing to when they say Nike “went woke”?*

This is where the story gets politically charged. And it’s important to understand **what** people are actually upset about — because dismissing it as “just politics” misses the business reality.

**The flashpoints:**

**2019: Colin Kaepernick.** Nike made the former 49ers quarterback the face of its **30th anniversary “Just Do It” campaign** — the one with the tagline: *“Believe in something. Even if it means sacrificing everything”* .

**2020: The “For Once, Don’t Do It” ad.** After George Floyd’s death, Nike ran a campaign telling Americans not to “pretend there’s not a problem in America” and not to “turn your back on racism” .

**2023: Dylan Mulvaney.** Nike partnered with the transgender influencer to promote **women’s leggings and sports bras** — the same Dylan Mulvaney whose Bud Light partnership triggered a massive conservative backlash and sales collapse for Anheuser-Busch .

**2019: The Betsy Ross flag shoe.** Nike canceled production of a sneaker featuring the **Betsy Ross flag** — an early American flag — after Kaepernick reportedly objected, calling it offensive .

**Frequently Asked Question:** *How did these decisions affect Nike’s customer base?*

**Senator Ted Cruz** — who says he “wore nearly 100% Nike for athletic wear” his whole life — put it bluntly: **“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”** .

**The Washington Times editorial board** was even more direct: **“Good corporate citizens support the left’s agenda, then pay the price. When a company gets involved in political controversies, its sales often suffer”** .

---

## But Is “Woke” Really the Whole Story?

### The Honest Answer: No

**Frequently Asked Question:** *Is “going woke” the only reason Nike’s stock crashed?*

**No. And anyone who tells you it is oversimplifying a much more complex collapse.**

Here’s what actually happened — and it’s a story of **multiple strategic failures** colliding at once.

**Failure #1: The Direct-to-Consumer Bet**

Under previous CEO John Donahoe, Nike **abandoned its wholesale partners** — the Foot Lockers, the Dicks Sporting Goods, the thousands of local retailers that had sold Nike shoes for decades. The strategy: sell directly to consumers through Nike’s own app and stores .

**The result:** Nike **lost shelf space**. Competitors like **Hoka, On, and New Balance** filled the void. When Nike tried to come back to wholesale, those retailers had already moved on .

**Failure #2: The Lifestyle Trap**

Nike stopped innovating in **performance footwear** and instead leaned on **retro models** — Air Force 1s, Dunks — that had been popular in the 1980s and 2000s. The company **oversupplied the market**, discounted heavily, and destroyed the premium positioning of its iconic products .

**Hill admitted it directly:** **“Simply put we’ve been oversupplying our iconic retro product, asking them to do too much”** .

**Failure #3: The China Problem**

Once one of Nike’s most important growth engines, **China revenue fell 26%** on a constant-currency basis last quarter . Hill acknowledged that stabilizing the market will take **“multiple seasons”** .

**Failure #4: The Caitlin Clark Blunder**

Nike signed WNBA superstar **Caitlin Clark** — arguably the most popular women’s basketball player in history — but **waited three years** before releasing her signature shoe. Meanwhile, they prioritized other athletes with smaller followings .

**Ethan Strauss**, the former ESPN reporter who analyzed Nike’s decline, called this a symptom of a company that had **lost touch with what actually drives its business** .

---

## The Human Cost: What 12-Year Lows Actually Mean

### Beyond the Stock Ticker

**Frequently Asked Question:** *What does this mean for regular people?*

It means **jobs**. Nike has already cut staff **twice this year**, and announced that more layoffs are coming in **2027** .

**“This work will result in fewer roles across Nike, and I want to acknowledge that news like this creates uncertainty. I don’t take that lightly,”** Hill wrote in his memo .

It means **uncertainty** for the thousands of employees in Beaverton, Oregon — and around the world — who have watched their company’s value evaporate.

**It means a company that was once a symbol of American excellence** — the brand of Michael Jordan, Serena Williams, LeBron James — is now being discussed in the same breath as **Bud Light** as a cautionary tale about corporate politics .

**And it means Phil Knight** — Nike’s co-founder and chairman emeritus, now in his late 80s — had to watch his life’s work hit a 12-year low.

**Knight’s message to employees** during the company’s “Founder’s Week” was both reassuring and somber: **“Believe the old man who has seen all the ups and downs: we’re going to be okay. Difficult moments have a very particular way of clarifying things”** .

---

## The Turnaround Plan: What Comes Next

### The “Pace” Restructuring

**Frequently Asked Question:** *What is Nike actually doing to fix this?*

CEO Elliott Hill’s plan is called **“Pace.”** It includes :

**Geographic reorganization:** From four regions to **three** — Americas (North America + Latin America), APGC (Asia Pacific + Greater China), and EMEA.

**New campus in Bengaluru, India:** A long-term investment in capabilities and talent, with leadership for Asia Pacific and Greater China based in **Singapore**.

**Supply chain modernization:** Streamlining operations to reduce costs and move faster.

**Job cuts:** Fewer roles across the company, with decisions beginning in **2027**.

**Savings target:** Approximately **$2.5 billion** through fiscal 2031, with most savings arriving in **2029 and 2030** .

**Frequently Asked Question:** *How long will the turnaround take?*

**Longer than anyone hoped.**

Nike said most of the savings from this restructuring **won’t arrive until fiscal 2029 and 2030** . The company forecast **steeper-than-expected declines** in sales and profit through **fiscal 2028** .

**RBC Capital Markets analyst Piral Dadhania:** **“Things are going to get worse before they get better”** .

---

## Frequently Asked Questions

**Q: How low has Nike’s stock gone?**

A: Nike hit **$33.87** on October 2, 2026 — its lowest in over **12 years**. It’s down **81%** from its November 2021 peak of **$179.10** .

**Q: Did Nike’s CEO actually admit the company went “woke”?**

A: Hill didn’t use the word “woke.” But his memo emphasized that Nike had “put sport at the center” over the past year — an implicit admission that sport had not been at the center before .

**Q: What marketing decisions triggered the backlash?**

A: The **Colin Kaepernick campaign (2019)**, the **Betsy Ross flag shoe cancellation (2019)**, the **“For Once, Don’t Do It” ad (2020)**, and the **Dylan Mulvaney partnership (2023)** .

**Q: Is “going woke” the only reason for Nike’s decline?**

A: **No.** Strategic failures — the direct-to-consumer bet, over-reliance on retro products, and the China collapse — are equally or more responsible. But the cultural positioning **alienated a significant portion of Nike’s traditional customer base** .

**Q: What is Senator Ted Cruz saying about Nike?**

A: Cruz said Nike’s marketing was built on **“America-hate”** and that he personally stopped buying Nike products after the Betsy Ross shoe cancellation. He used the hashtag **#GoWokeGoBroke** .

**Q: What is Nike’s restructuring plan?**

A: Called **“Pace,”** it includes geographic reorganization into three regions, a new campus in India, supply chain modernization, and **job cuts** starting in 2027. Expected savings: **$2.5 billion** through fiscal 2031 .

**Q: When will Nike recover?**

A: Most savings won’t arrive until **fiscal 2029 and 2030**. The company expects **steeper declines** through fiscal 2028. RBC says **“things will get worse before they get better”** .

**Q: What does Phil Knight say?**

A: Nike’s co-founder told employees: **“Believe the old man who has seen all the ups and downs: we’re going to be okay. Difficult moments have a very particular way of clarifying things”** .

**Q: What should investors watch next?**

A: Nike’s **Investor Day on November 16-17**, where management is expected to provide a clearer roadmap for restoring growth .

---

## Conclusion: The Cost of Forgetting Who You Are

Let me bring this home.

**Nike didn’t fail because it made one bad ad. It didn’t fail because of Colin Kaepernick or Dylan Mulvaney or a canceled shoe.**

**Nike failed because it forgot what it was.**

Nike is a **sports company**. Its customers are **runners, basketball players, athletes** — people who buy shoes because they want to **perform better**, not because they want to make a political statement.

For years, Nike’s leadership seemed to believe that **cultural relevance** could substitute for **product excellence**. That being **seen as progressive** mattered more than being **seen as the best**. That the brand’s **values** were more important than its **value**.

**The market disagreed.**

Elliott Hill’s memo — **“we’ve put sport at the center”** — is the closest thing to an admission we’ll get. It’s a recognition that the company **lost its way**, and that the path back requires **returning to what made it great in the first place**.

**Will it work?** Nobody knows. The turnaround will take **years**. The job cuts will be painful. The China problem won’t solve itself. And the competition — **Hoka, On, New Balance** — isn’t going away.

**But here’s what’s clear:** Nike’s stock at a **12-year low** is a warning to every American company. **Your customers aren’t political pawns.** They’re people with choices. And when you tell them — implicitly or explicitly — that your **values** matter more than their **business**, they’ll go somewhere else.

**“Go woke, go broke”** is a catchy slogan. But the real lesson is simpler and more profound: **Know who you are. And never forget who pays the bills.**

---

## Disclaimer

**This article is for informational purposes only and does not constitute financial, investment, or political advice.**

I am not a licensed financial advisor, investment professional, or political analyst. The views expressed here are based on publicly available information and my own analysis at the time of writing.

**Key facts cited in this article are sourced from Fox News, Fox Business, Yahoo Finance, The Globe and Mail, Bloomberg, Reuters, Mediaite, The Washington Times, This is Money, Moneywise, and other outlets as of October 2026.** Stock prices, financial data, and corporate announcements are subject to change. Quotes from Senator Ted Cruz and other political figures are their opinions, not statements of fact.

**Investing in stocks involves significant risk, including the potential loss of your entire investment.** **Past performance does not guarantee future results.** Nike’s stock may recover or decline further. The mention of specific companies, brands, or individuals is for illustrative purposes only and is **not an endorsement or recommendation** to buy, sell, or hold any security.

**The political and cultural commentary in this article is presented for context and analysis.** This article does not endorse any political viewpoint or take a position on the marketing decisions described. Readers should form their own conclusions based on comprehensive research.

**Always conduct your own research before making any investment decisions.** Consult a qualified financial professional who understands your personal situation, risk tolerance, and goals. Do not make financial decisions based solely on news articles, opinion pieces, or corporate communications.