Nike shareholders rejected rolling back LGBTQ+ programs despite conservative pressure and the biggest crisis in the company's history

An analysis of how the corporate battle over inclusivity works and what is really behind the sports giant's financial problems

A proposal by conservative investors ограничить благотворительные партнерства Nike с LGBTQ+-организациями и пересмотреть программы поддержки трансгендерных сотрудников набрало менее 1% голосов акционеров. Conservative activists tried to link Nike's declining market value to its social policies and “woke activism.” Nike is indeed in a deep crisis: акции компании упали до уровня 2014 года, обесценившись примерно на 80% от пика 2021 года, а продажи в Китае рухнули на 26%. The main reasons for the decline are strategic missteps: an unsuccessful shift to direct sales through apps, stagnant innovation, the loss of wholesale partners, and pressure from younger competitors such as On and Hoka.

What proposal was put to a shareholder vote?

In September 2026, at Nike's annual shareholder meeting, Inspire Investing, an investment firm that promotes Christian investing principles, put “Proposal No. 5” to a vote.

The resolution called on Nike's management to prepare a special report assessing the financial, legal, and reputational risks associated with the company's charitable activities. In the supporting statement, the authors specifically criticized the perfect score (100 out of 100) that Nike regularly receives in the Human Rights Campaign's Corporate Equality Index (CEI).

Conservative investors expressed concern that Nike's corporate health plan covers gender transition procedures for employees and potentially their dependent minor family members. They also claimed that supporting LGBTQ+ organizations creates business risks and alienates conservative consumers.

Nike's board of directors urged shareholders to reject the proposal. In its statement, the company's management said that charitable initiatives and partnership programs undergo thorough review and contribute to long-term growth in business value by expanding the consumer base and strengthening customer loyalty.

According to a report Nike submitted to the U.S. Securities and Exchange Commission (SEC), the conservative proposal failed spectacularly, receiving менее 1% голосов. Почти 99% акционеров проголосовали против.

Why are conservatives attacking Nike, and are their claims justified?

In recent years, right-wing activists and investors have actively promoted the narrative that the financial problems of major corporations are a direct result of “woke culture” and social inclusivity. As examples, they cite advertising campaigns featuring Colin Kaepernick or support for transgender people.

Representatives of Inspire Investing claimed that the company had alienated a significant portion of its customers by going too far with its political activism.

However, sports analysts and industry commentators point out the flaws in these arguments. In particular, the publication Outsports notes that Nike's market capitalization and financial performance saw their strongest growth during the years when the BeTrue line supporting the LGBTQ+ community was actively rolled out (beginning in 2012). The main decline in its share price occurred after 2023, when the scope of such collections had already been scaled back. Even representatives of the conservative wing of the investor community acknowledge that it is extremely difficult to isolate the impact of politics on share prices and that the company has faced many other problems.

What Is Really Happening to Nike: The Biggest Crisis in Its History

The company's financial position is indeed causing serious concern among investors and market analysts.

• Stock price collapse: Цены на акции Nike упали примерно до $33 за бумагу, что соответствует показателям 2014 года. От своего исторического максимума, достигнутого в ноябре 2021 года, компания потеряла около 80% стоимости, а её рыночная капитализация сократилась более чем на $200 млрд.
• Removal from Major Indices: In September 2026, Nike was removed from the prestigious S&P 100 index after nearly 18 years.
• Sales Decline: In the first quarter of fiscal 2027, the company's revenue fell 4% year over year — to $11.21 billion. Management forecasts a 7–9% decline in sales for the full fiscal year.
• Collapse in a Key Market: Nike's sales in China—a region that had long been a major growth driver—plunged 26%. This marked the ninth consecutive quarter of decline.

What Are the Real Causes of the Crisis?

Wall Street analysts attribute Nike's problems to a combination of management, logistics, and product missteps accumulated over the past several years:

1. Failure of the DTC (Direct-to-Consumer) Strategy: In 2020, under former CEO John Donahoe, Nike decided to sharply reduce its presence in traditional wholesale networks and move customers to its own app and online store. The strategy failed: the costs of digital customer acquisition and individual logistics proved enormous, while competitors quickly filled the shelf space vacated in multi-brand stores.
2. Innovation Stagnation: While management focused on digital channels, the development of new high-performance models slowed. The company relied too heavily on endlessly reissuing retro models (Dunk, Air Jordan), demand for which gradually faded.
3. Growing Competition: In the performance running shoe segment, Nike lost ground to young, dynamic brands such as On and Hoka, which managed to lure away its loyal customers.
4. Distribution Problems in Asia: Drastic measures to restrict online sales through Chinese partners failed to restore control over pricing and only exacerbated the decline in demand.

How Is the Company Trying to Overcome the Crisis?

In the fall of 2024, company veteran Elliott Hill returned as Nike's CEO. The new management is trying to rebuild relationships with traditional wholesale retailers, reduce excess inventory of older models, and refocus on sports innovation.

As part of a reorganization of its operating model, Nike announced plans to streamline its regional structure, reduce its workforce starting in 2027, and save approximately $2.5 billion by fiscal 2031. Nevertheless, analysts warn that the brand's recovery will be a long process and that quick results should not be expected.