Nike's revival may depend on a 40-year franchise – the Jordan brand source Investing.com
Bernstein analysts state that the rise and fall of the Jordan line explains a significant part of Nike's strong growth from 2021 to 2023 and its current slowdown.
Brand sales have fallen by about $2 billion over two years, decreasing from approximately 15% of revenue #NIKE to around 11%. Excess inventory and constant discounts have diluted the brand's appeal and pushed customers toward competitors.
The key question now is whether Jordan can be revived and if this revival can lead Nike (New York: NKE) through a broader reboot.
Bernstein states that the brand is far from dead: consumer survey data, social media tracking, and retail checks show that Jordan still has strong global appeal.
The issue lies in the product lineup and execution, not in customer interest. With the right launches, Jordan could fuel a new multi-year 'brand popularity cycle' starting in 2026, boosting Nike's growth and margins from the 2027 fiscal year.
In an optimistic scenario, Nike could release a strong lineup of Jordan products in the summer of 2026. This could trigger an improvement in lifestyle product and apparel sales across Nike's business, pushing revenue growth into the high single digits and margins above 13%.
Bernstein estimates that earnings per share could reach $4.80 by the 2029 fiscal year, implying a stock price of around $120, or about 56% growth from current levels.
But if the new Jordan launches fail and the brand grows only slowly, Nike's overall growth is likely to remain muted. In this case, profits are likely to increase only slightly, and shares may fall to $70, representing about a 9% decline.#cryptotrade $BNB
