Nike's 47% slide may deepen as AI agents reshape shopping

This year, Nike's stock has dropped by 47%. According to retail CEO Jan Kniffen, AI-powered agents might divert consumers from established brands.

Nike is already contending with declining sales. In the most recent quarter, revenue decreased by 4%, and the company forecast a high-single-digit decline for the full fiscal year. Now, the ongoing disruption from AI is reaching into different arenas, including a Wall Street powerhouse.

Who Controls the Shelf When AI Agents Do the Shopping?

Kniffen, who leads J. Rogers Kniffen Worldwide Enterprises, spoke on CNBC's Power Lunch. He stated that AI agents would soon select and purchase items for consumers.

A consumer searching for running shoes without specifying Nike might not encounter the brand at all. Competitors like Hoka or On could prevail based on fit and price.

The show's hosts raised doubts, pointing out that an incorrect selection leads to returns and added inconvenience.

Nevertheless, Kniffen argued that consumer inertia might protect established brands, as many shoppers still specifically request Nike.

Nike has not ignored this trend. According to a May report from ConsumerGoods, the company planned to integrate sales into Google's Gemini chatbot and AI Mode search starting in June. However, the agent could still choose a competitor.

Does Scale Win the Agent Era?

Kniffen contended that large players ultimately dominate, similar to Amazon and Walmart after the internet era. He described Walmart as the best AI operator in the U.S., referencing its AI applications in supply chain, stores, and warehouses.

Nike possesses scale, with $11.2 billion in quarterly revenue, yet sales declined 4% per its earnings report. CNBC noted that CEO Elliott Hill stated performance products are still too small to compensate for declines in other areas.

Sportswear sales saw a low-double-digit percentage drop, and Greater China revenue fell 26% when adjusted for currency changes. Nike also disclosed layoffs set to begin in 2027.

Citi analysts summarized the change in a Friday research note.

“Nike is turning into a cost-cutting story.”

Citi analysts, CNBC

On October 5, Nike shares closed at $33.96, roughly 47% below the end of 2025. The stock had already been the Dow’s worst performer by mid-September. Best Buy, Target, and Victoria’s Secret have performed well this year. AI agents might further widen the gap between winners and losers.