While the broader U.S. equity markets have been strong in 2023, led by the rally in tech stocks, sneaker giant Nike (NKE) has lost over one-sixth of its market cap this year, and is the second worst-performing Dow Jones Industrial Average ($DOWI) constituent. Nike stock hit an all-time closing high over $173 in November 2021, but more recently fell to a two-year low of $82.22 in October 2022 - and it's still trading around 26% below its 52-week highs.
Nike is the most popular sneaker brand globally and is the market leader in the segment. The stock, meanwhile, has been out of favor with markets, as evidenced by its recent price action. While NKE's 30% decline in 2022 could be attributed to the weakness in broader markets, the shares have failed to recover in 2023, despite a wider rally in growth stocks – which, incidentally, Nike classifies itself as.
