Nike's stock price hit a 12-year low earlier this week, prompting Sen. Ted Cruz, R-Texas, to renew his criticism of the company over its decision several years ago to cancel a Betsy Ross-themed sneaker. The company's shares have declined nearly 80% from their all-time high set in 2021, erasing roughly $200 billion in market value.
The decline marks a significant reversal for Nike, whose share price reached an all-time high of $177.51 per share five years ago. Analysts have pointed to various factors driving the stock's underperformance, including shifting consumer preferences and increased competition from newer athletic brands.
What the Right Is Saying
Cruz posted on X that Nike's decision to cancel the Betsy Ross-themed shoe in 2019 demonstrated its marketing strategy was rooted in "America-hate." He said he previously wore nearly 100% Nike athletic wear but switched brands after the controversy.
"Kaepernick pissed me off, but when they cancelled the Betsy Ross shoe it showed that their marketing plan was America-hate," Cruz wrote. "Turns out I wasn't the only one. #GoWokeGoBroke."
Then-Senate Majority Leader Mitch McConnell, R-Ky., also criticized the 2019 decision, saying at the time: "If we're in a political environment where the American flag has become controversial to Americans, I think we've got a problem."
What the Left Is Saying
Progressives have largely not defended Nike in response to Cruz's criticism. Some on the left note that Cruz's focus on corporate culture war issues distracts from broader economic concerns affecting working Americans. The original 2019 decision to cancel the Betsy Ross shoe came after Colin Kaepernick reportedly raised concerns that the Revolutionary-era flag could offend Black consumers, as the design had been adopted by white nationalist groups.
Nike said in a statement at the time that it pulled the planned July Fourth release due to "concerns that it could unintentionally offend and detract from the nation's patriotic holiday." The company has not issued a public response to Cruz's latest remarks.
What the Numbers Show
Nike's stock closed at its lowest level since 2014 earlier this week. The company's market capitalization has fallen approximately $200 billion from its peak valuation of roughly $250 billion in late 2021. Shares have declined nearly 80% from their all-time high of $177.51.
The company reported revenue of $51.4 billion for its fiscal year ending May 2025, down from $51.7 billion the prior year. Nike has faced increased competition from brands including Adidas and newer market entrants, while also navigating shifting consumer preferences toward more casual footwear styles that have benefited competitors.
The Bottom Line
Cruz's renewed criticism reflects ongoing tension between some conservative consumers and major corporations over cultural issues. The stock decline coincides with broader challenges facing traditional athletic apparel companies amid changing market dynamics. Nike is scheduled to report its next quarterly earnings in approximately six weeks, when executives are expected to address the company's strategy for reversing its sales declines.