Nike’s Jordan Brand Is in Need of a ‘Reset’ TD Cowen Analyst Says

Nike’s once red-hot Jordan Brand could be losing its cool. In the last five years, Jordan Brand has more than doubled its top-line growth, going from $3.14 billion in sales in 2019 to $6.99 billion in fiscal 2024, according to a Monday note led by TD Cowen managing director John Kernan. That represents a five year CAGR of 17 percent, which is more than triple the growth of the Nike brand in the same time. However, according to Kernan, data from third party resale sites like StockX and GOAT show that Jordan’s brand heat appears to be “waning.” “There is Jordan retro fatigue along with the other over distributed franchises that Nike management is currently involved in managing these down through marketplace,” Kernan wrote. On StockX, for example, Kernan noted that about 1,000 Jordan SKUs were “selling below their retail price as of October 31, 2024.” This oversupply was also evident on GOAT. “We would prefer to see the brand elevated with more premium distribution and price points,” Kernan wrote about Jordan Brand. The same issue has plagued franchises across Nike Inc. more generally. To address this decline in demand for Nike and Jordan products, Nike has recently set out to reduce the presence

Follow Footwear News on Twitter or become a fan on Facebook.

from Footwear NewsFootwear News https://ift.tt/UKAgjsV