Nike has a new plan for retro Michael Jordan shoes

Nike's (NKE) Jordan Brand has been one of the growth drivers for the company since it was created in 1997, following 13 years of spectacular sales for Michael Jordan's basketball shoes. Until the last three years, the Jordan brand was still posting positive sales growth even as the rest of the athletic apparel company struggled, and the brand reached a peak of $8.7B in revenue in fiscal year 2024. However, by the end of fiscal 2026, it was down about 20% from that level, and in the first quarter of FY27, Jordan brand revenue fell by a mid-teens percentage.

One of the causes of the downturn may be overexposure. On Nike's (NKE) last earnings conference call, CEO Elliott Hill noted that the company may have been oversupplying its iconic retro product. "And as we've done with the Air Jordan 1, we will deliberately reduce the volume and frequency of specific Jordan Retro launches. We've discussed it with our wholesale partners. Together, we will restore balance to the marketplace to create a foundation for more profitable and sustainable growth," he highlighted. Looking ahead, BNP Paribas sees upside for Nike (NKE) if the Jordan brand can benefit from getting away from frequent discounts, social media trends, and a recovery in resale prices. The success of Nike (NKE) in reinvigorating the Jordan brands has major implications for Dick's Sporting Goods (DKS), especially for the Foot Locker business.

Nike (NKE) scored one of the biggest coups in retail history when it signed Michael Jordan to a $2.5M endorsement deal in 1984 that was revolutionary at the time in creating an entire product marketing strategy around a single athlete. The continued global sensation of the Air Jordan basketball shoe line eventually led to the creation of the Jordan brand in 1997 as a major subsidiary of the company and dominant force in the footwear industry.

Shares of Nike (NKE) have perked up since the company issued its fiscal first-quarter earnings report, with a 9% swing higher.