Nike Is Tired of Being Posterized So It’s Turning To Jordan For an Assist - The Average Joe

Newsletter

Latest Issues Subscribe

Company

About Us Jobs
×

Become a better investor with our free daily newsletters

Join 250,000+ investors discovering new market trends and ideas.

    Nike Is Tired of Being Posterized So It’s Turning To Jordan For an Assist

    victorlei

    June 25, 2024

    Michael Jordan famously said, “The key to success is failure.” By that quote, Nike should be well set up for success. Nike ($NKE), whose stock is down nearly 50% from its 2021 peak, has struggled in China, one of its largest markets, after consumers boycotted the brand for stopping cotton purchases from Xinjiang over forced labor abuse accusations. China’s share of Nike’s total revenue has dropped from nearly one-fifth of its total sales in 2021 to 15%. To reignite growth, Nike is turning to its Jordan brand, targeting older consumers with disposable income who grew up watching Michael Jordan.

    • In March, Nike opened its fourth World of Flight store in Beijing’s high-end Taikoo Li shopping complex, home to luxury brands like Louis Vuitton and Hermès.
    • From 2019-2023, Jordan sales soared by 198% — outpacing Nike’s 43% but lagging behind Fila’s 516% growth.

    Fly like Mike, not Nike: With earnings set to be reported tomorrow, the company has no shortage of doubters. Williams Trading’s Sam Poser recently set a price target of $75 for Nike (~21% downside) — citing an overreliance on discounts and a less experienced management team compared to the past.

    Trending Posts