Nike SB has built its reputation in skateboarding through signature shoes, professional riders and collaborations rooted in skate culture.
But its parent company, Nike, is facing growing scrutiny over its business strategy as its stock falls to levels not seen in more than a decade.
According to reports, the debate has resurfaced following an employee memo from CEO Elliott Hill, who said the company had spent the past year putting athletics at the center of its business.
“We’re seeing encouraging signs of progress, but we have more work to do to win over the long term,” Hill wrote in the 860 word memo sent on October 1.
One day later, Nike shares closed at $33.87, their lowest closing price in more than 12 years, according to the figures cited in the original report. The company has also gone through multiple rounds of job cuts and expects further layoffs in 2027.
For critics, Hill’s statement raises a question about whether Nike lost sight of its core business while investing heavily in marketing tied to social and political causes.
That debate extends to Nike SB, which occupies a distinct place in the skate shoe industry. Since launching in 2002, the division has established itself through signature models, professional skateboarders and collaborations with artists, shops and cultural figures. Its products have become part of skateboarding’s wider footwear culture, making the parent company’s branding decisions relevant to its audience.
One example is Nike’s Be True collection, which celebrates LGBTQIA+ communities through themed footwear and apparel. The collection reflects the company’s approach to connecting its products with social causes and communities.
READ MORE: Corporate Skate Shoe Giant Nike to be Removed From S&P 100 as Stock Decline Deepens
Supporters see these releases as a way to represent LGBTQIA+ skateboarders and other customers who want their identities acknowledged by brands they wear. Critics question whether such campaigns help sell better products or distract from a company’s core priorities.
However, the existence of the Be True collection does not establish that Nike has neglected product development or that its LGBTQIA+ collaborations contributed to its stock decline. Skateboarding has always included people from different backgrounds, and supporting inclusion is not inherently at odds with producing quality skate shoes.
The debate is about how Nike balances cultural messaging with the expectations of its customers, particularly when the company is struggling financially.
Nike’s involvement in social causes stretches back decades. In 2017, the company released its Equality campaign, which promoted fairness and inclusion. Two years later, Colin Kaepernick became the face of its 30th anniversary Just Do It campaign. The former NFL quarterback had become a prominent political figure after kneeling during the national anthem to protest racial injustice.
Following George Floyd’s death in 2020, Nike launched its For Once, Don’t Do It campaign, encouraging people to confront racism rather than ignore it. Its Be True collections have also supported LGBTQIA+ inclusion through themed products.
READ MORE: Democrat Congressman Troy Carter Calls Out Nike and Converse Over “Deeply Offensive” KKK Imagery
These campaigns attracted both support and criticism. Some consumers appreciated Nike’s willingness to address social issues, while others preferred advertising focused on athletes, footwear and performance. The controversy has become part of a broader discussion about whether the company struck the right balance between cultural relevance and commercial priorities.
Nike’s financial troubles, however, cannot be explained by advertising alone. Its shares reached a closing high of $177.51 in November 2021 before falling to $33.87 in October 2026, a decline of roughly 81 percent.
The company has faced fierce competition from newer footwear brands, weaker performance in China and difficulties stemming from its direct to consumer strategy. By prioritizing direct sales, Nike reduced its reliance on some retail partners, but the approach also contributed to less shelf space in certain stores, giving competitors more opportunities to reach shoppers.
Changing consumer preferences and questions about its product lineup have created additional challenges. Critics argue that Nike became too focused on cultural messaging and not focused enough on the products that originally made it successful. That remains an interpretation, however, rather than an established explanation for the company's financial performance.
Nike’s handling of basketball star Caitlin Clark has also drawn criticism. Clark became one of the most recognizable names in women's basketball, attracting substantial attention from fans and media, but her signature Nike sneaker did not arrive until June 2026.
READ MORE: Corporate Skate Shoes Nike Announces Another Round of Layoffs as Turnaround Struggles
Commentators including Ethan Strauss questioned the timing of Clark’s release compared with A’ja Wilson’s signature footwear. Wilson is one of the WNBA’s leading players, while Clark has attracted a large following that extends beyond traditional women’s basketball audiences.
The criticism centered on whether Nike had adequately capitalized on Clark’s popularity, not whether Wilson deserved less attention. There is no direct evidence that political considerations determined the release schedule, and product development, manufacturing and marketing decisions can all affect launch dates. Still, the episode added to questions about Nike’s commercial judgment at a time when it needs to regain consumer interest.
Hill’s memo addressed several operational plans beyond marketing. He discussed a new campus in India, supply chain modernization and a reorganization into three geographic regions covering the Americas, Asia Pacific and Greater China, and Europe, the Middle East and Africa.
He did not explicitly blame political campaigns, LGBTQIA+ collaborations or other social initiatives for Nike’s declining stock price. Nor did he directly admit that the company had gone too woke. His statement about putting athletics at the center of the business is what led critics to interpret the memo as an acknowledgment that Nike needs to reconnect with its core identity.
For Nike SB, that means continuing to produce shoes skateboarders want to wear, supporting its riders and maintaining relationships with the shops and communities that helped establish the division. A successful skate shoe needs to perform on a board, withstand repeated use and appeal to the people buying it. Marketing can help build a brand, but it cannot replace product quality.
READ MORE: Corporate Skate Shoe Giant Nike Adds LVMH Luxury Dynasty Heir Alexandre Arnault to Its Board
Nike’s financial struggles do not automatically mean Nike SB is in trouble, and the parent company’s declining share price does not prove that the Be True collection has hurt sales. The skateboarding division has its own products, riders, retail relationships and customers, all of which influence its standing in the market.
Still, Nike’s wider reputation can affect how consumers perceive its individual divisions. The company now needs to demonstrate that it can connect with customers, develop compelling products and make decisions that support long term growth without losing sight of the communities it serves.
Hill’s memo was not an explicit confession that Nike went too woke, but its renewed emphasis on the company’s core business has given critics fresh grounds to question its priorities. For Nike SB and the wider skate shoe industry, the bigger issue is whether brands can maintain authentic relationships with skateboarders while navigating the commercial and cultural pressures of a global business.
Nike built its reputation by making products people wanted to wear. With its stock near levels last seen more than a decade ago, the company has a lot of work ahead to convince consumers and investors that it can regain its footing.