Nike reported fourth-quarter financial results that slightly topped depressed revenue and earnings-per-share estimates, but the full-year picture reflects the brand’s struggles, as 12-month revenue fell 10% to $46.3 billion.
The worst-performing Nike segment was the Jordan Brand, where revenue fell 16% for the year to $7.3 billion. Men’s, which represents roughly half the business, and women’s were both down 6%, while kids’ dipped 5%. Converse sits outside the Nike brands and was off 19% to $1.7 billion.
Jordan has been an outperformer in recent years, while the overall Swoosh brand struggled, leading to the return of Elliott Hill in October to take over as CEO. Jordan’s loyal customer base and iconic designs drove sales higher, including 6% the previous year when the overall company was flat. Yet, it has faced saturation concerns over the last year and a bigger challenge from Adidas.
The fiscal year-end results are the one time a year the company provides financial results of its wholly owned Jordan brand, whose foundation was the signing of NBA icon Michael Jordan to an endorsement contract in 1984.
The brand’s revenue doubled between 2020 and 2024 as it expanded into more women’s gear, non-basketball items and international sales. The “performance” basketball sneaker market is down over the past decade, but the “retro” or lifestyle business more than made up for the declines.
Jordan’s soaring revenues boosted the fortunes of the former basketball player, who earned an estimated $300 million overall last year, predominantly from Nike royalties. MJ is the highest-paid athlete of all time, with $3 billion in career earnings from salaries and endorsements, by Sportico’s count, or $4.15 billion adjusted for inflation.
New CEO Hill is a believer in the Jordan Brand as a pillar to restore Nike’s dominance in the sportswear industry. He was the Nike executive who took the Jordan Brand international in the late 1990s.
Nike’s stock is down 17% year-to-date and closed Wednesday at $62.54. It is now off 65% from its high-water close of $177.51 in November 2021. Last year, Nike’s stock was the second-worst performer among the 30 components of the Dow Jones Industrial Average with a 30% drop.
