After Years of Growth, Jordan Brand Is Now a Big Challenge for Nike

For Nike Inc president and chief executive officer Elliott Hill, he has three main areas of the business he wants to address in fiscal 2027: Nike Sportswear, Greater China and Jordan Brand. The latter may come as a surprise to some, as the Jumpman has seen steady growth over the last few years despite Nike’s overall woes. But, during the company’s first quarter 2027 earnings call with analysts, Hill identified the Jordan Brand as an area in need of improvement. The CEO acknowledged that the company has been “oversupplying iconic retro product,” which has hurt the business, and it’s hurting the bottom line. In the first quarter of fiscal 2027, Hill said that Jordan Brand represented 13 percent of its global business, with revenue falling by mid-teens in the period. “With Jordan Brand footwear, we’re going to get back to leading the scarcity model that we created,” Hill explained on the call. “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.” You May Also Like Hill said that in the near term, North America will feel the biggest impact of this pullback on retro styles from Jordan Brand. “When consumers see the Jumpman, it should feel special, it should feel earned,” the CEO added. “And every decision we’re making is designed to ensure the Jordan Brand remains as coveted a decade from now as it has been for the past several decades.” Hill noted that in addition to renewing Jordan’s scarcity model, the company will aim to bring “dimension” to the brand through sport. “We’re already seeing some success in growth in our cleated business, our golf business and our training business,” the CEO said. BNP Paribas Equity Research senior analyst Laurent Vasilescu wrote in a research note that he wasn’t surprised by Jordan’s performance pointing to “seeing signs of moderating.” “Jordan product is increasingly on promo, social media trends are turning, secondary market prices are tanking, and suppliers are declining,” Vasilescu said. Williams Trading equity analyst Sam Poser believes “too much weight” was put on the shoulders of the Jordan Brand, with “too many launches, too frequently, with too many pairs put in marketplace.” “For the foreseeable future, Nike has made the decision to reduce the number of Jordan launches and the number pairs launched, which should result in reviving its pull model and driving higher margins, albeit with a decline in sales,” Poser wrote in a research note on Friday. “We believe that the correct decision is being made for Jordan, we just wonder why it took so long.” Williams Trading expects that Jordan Brand revenue will remain negative through the third quarter of fiscal 2028. The new focus on Jordan Brand comes as Nike reported its first quarter 2027 earnings. Net income at the Beaverton, Ore.-based company in the first quarter of fiscal 2027 was $712 million, down 2 percent from $727 million at the same time last year. Diluted earnings per share in Q1 is 48 cents, down from 49 cents a share in the first quarter of 2026. Net sales in the quarter tallied $11.2 billion, down 4 percent from $11.7 billion in the first quarter last year on a reported basis, and down 5 percent on a currency-neutral basis.