Nike Air Jordan cachet tumbles on resale market. Is sneaker culture moving on?

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NEW YORK, Sept 28 — When Nike reports its results for the key back-to-school shopping season on Thursday, investors will be eyeing the performance of its Jordan brand, a major...

NEW YORK, Sept 28 — When Nike reports its results for the key back-to-school shopping season on Thursday, investors will be eyeing the performance of its Jordan brand, a major profit-driver for the company.

The company does not report what per cent of its total revenues come from the Jordan brand. But within wholesale, Jordan accounts for roughly 16 per cent of Nike’s revenues, according to its fiscal 2023 annual report — up 29 per cent compared to the previous year. Major retailers such as Foot Locker have flagged strong demand in recent quarters for “performance running” shoes from brands like Deckers-owned Hoka, while sales of everyday “lifestyle” sneakers, such as canvas skate shoes, have softened.

As resale premiums have fallen, Nike has also reported slower growth. Sales in the key North American region rose 5 per cent in the fourth quarter ending May 31, its slowest increase in four quarters.

 

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Nike Air Jordan cachet tumbles on resale marketSome investors are concerned the Jordan brand may be losing steam.
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