Nike's stock has crashed 78% from its November 2021 peak, erasing $200 billion in market value—the worst performance in company history. The collapse stems from strategic errors under former CEO John Donahoe: over-reliance on direct-to-consumer sales that alienated retailers like Foot Locker before digital channels matured, and oversaturation of classic products (Air Force 1, Dunk, Air Jordan) that destroyed their scarcity premium. New CEO Elliott Hill's turnaround plan shows early promise but faces skepticism; analysts estimate recovery will take 3-4 quarters and requires rebuilding fractured distributor relationships. Competitors with stronger innovation pipelines are capitalizing on Nike's stumble.