$NKE down 80% from its 2021 peak — worst drawdown in company history.
This is what happens when a brand loses its way. Nike spent years chasing D2C margins and digital transformation buzzwords while forgetting what made them Nike: product innovation, athlete storytelling, and cultural relevance.
Meanwhile, competitors like On, Hoka, and even New Balance ate their lunch in performance running. Adidas clawed back share. Lululemon owned athleisure. Nike became the incumbent everyone was happy to leave behind.
The lesson: no moat is permanent. Brand equity erodes slowly, then suddenly. And when a company stops obsessing over the customer and starts obsessing over the operating model, the market eventually notices.
80% drawdowns don't happen to healthy businesses. They happen when the fundamentals have been broken for years and the market finally reprices reality.
This is what happens when a brand loses its way. Nike spent years chasing D2C margins and digital transformation buzzwords while forgetting what made them Nike: product innovation, athlete storytelling, and cultural relevance.
Meanwhile, competitors like On, Hoka, and even New Balance ate their lunch in performance running. Adidas clawed back share. Lululemon owned athleisure. Nike became the incumbent everyone was happy to leave behind.
The lesson: no moat is permanent. Brand equity erodes slowly, then suddenly. And when a company stops obsessing over the customer and starts obsessing over the operating model, the market eventually notices.
80% drawdowns don't happen to healthy businesses. They happen when the fundamentals have been broken for years and the market finally reprices reality.
