By clicking Accept, you consent to the use of ALL the cookies. The revenue of the Jordan Brand increased by 31% in 2021 in comparison to 2020. 1,001 last month in. NIKE Brand wholesale equivalent revenues consist of (1) sales to external wholesale customers and (2) internal sales from Nike's wholesale operations to their NIKE Direct operations, which are charged at prices comparable to those charged to external wholesale customers. That is an astounding number, and it speaks to the ridiculous amount of profit Nike must be bringing in as a whole. Nike built the Jordan Brand into a massive standalone business with $3.1 billion in wholesale revenue in the fiscal year ending May 2019, up 10% from the prior year. With the help of film director Spike Lee, Air Jordans were more than just basketball shoes. Tracy Lopez August 25, 2022. The ploy worked like a charm. Former Nike CEO Mark Parker disclosed last December that the Jordan imprint had recorded its first-ever $1 billion quarter. pic.twitter.com/4xjEk8OzOt. 2021 FORM 10-K 1. I have no business relationship with any company whose stock is mentioned in this article. At the time when Nike and Michael Jordan signed the contract, competitor adidas was still 50% larger by revenue than Nike. What percentage does Jordan get from Nike? Michael Jordan earns a reported 5% on Jordan Brand sales in his licensing deal with Nike. No matter how much customer unrest over the surge of resellers online (or the seemingly daily memes of users losing on the SNKRs app), Nike still has the game in a chokehold. I expect the company to still have huge growth potential through direct sales. The influence of sports on business and culture. The Jordan Brand had revenue of $3.1 billion in the fiscal year ending May 2019only 8% of company revenue but likely represents a larger chunk of the market value because its 10% growth. NIKE annual revenue for 2020 was $37.403B, a 4.38% decline from 2019. Michael Jordan likely made more than double his career NBA salary earnings in 2022 alone thanks to a decades-old licensing deal. In 2022, the Adidas Group generated over 22.5 billion euros in revenue. The former superstar is reported to have owned the 930, 964, and 993 models during his illustrious NBA career, and the Air Jordan VI pair of shoes was actually inspired by one of the vehicles he owned. Brooks, Converse, Vans, Under Armour, and Skechers footwear sales grew by more than half. Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy. The words of Nike founder Phil Knight also illustrate the importance of the Jordan Brand: in an interview with USA Today, he described signing Michael Jordan as the best business decision he has ever made. The companys low dividend payout ratio also gives them room for future dividend enhancements. Jordan Brand grew 31% with ~$5B in 2021 earnings while its women's biz nearly tripled in Q4. Michael Jordan was the first athlete to sign a lifetime partnership contract with the company. Media Necessary cookies are absolutely essential for the website to function properly. For perspective, consider that his first-ever five-year Nike deal signed in 1984 was worth $500,000 annually (about $1.2 million in todays dollars), plus royalties. As a bonus, he got his own shoe. I am not receiving compensation for it (other than from Seeking Alpha). If you are an admin, please authenticate by logging in again. Among the performances trumpeted by the Swooshs president and CEO John Donahoe was the growth of its in-house Jordan Brand. Consumer & Brand Reports. AP. (Vanessa Bryant has vocally opposed reseller culture online.) . No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Perfectly fluffy on the inside. Ever since the initial release in 1984, the Air Jordan and its related products have expanded Nikes domain and continues to define the modern basketball and sneaker culture we know today. There sure were a lot of telling Jordan tidbits in that documentary. This was the early '90s when sneaker culture wasn't a thing yet. Just last week, Jordan added 11 more WNBA players to its roster, producing its largest womens roster ever. If Michael Jordan's deal is the same as has been last speculated 5% of Jordan brand wholesale sales he made $180 million in the last 12 months from Nike. These allow the company to achieve an enormous media reach. 5-ranked WTA player, won a record $2.11 million for capturing her first Grand Slam title with a victory over No. The brand signed Kobe for a four-year deal that was worth $10 million a year. Pour en savoir plus sur la faon dont nous utilisons vos donnes personnelles, veuillez consulter notre politique relative la vie prive et notre politique en matire de cookies. statistic alerts) please log in with your personal account. . "Jordan Brand Shines" : Nike's Michael Jordan Brand Sales Rose to $5 Billion in the past year Published 06/28/2021, 10:30 AM EDT By Anuj Talwalkar Many people would say Michael Jordan is the best player ever. So what does Nike do? The Jordan brand represents 10% of Nike's total revenue; this has become 1/10 the size of Nike's business model, which also comprises Converse as a separate brand. Reebok grew a whopping 75%. But there was a bit of a snafu: the first Jordans were predominantly black by design and that violated the league's uniform policy at the time. This brand image could be damaged if, for example, one of the athletes endorsed by Nike, was involved in a scandal. In 2020, Jumpman, well jumped, and has continued to do so into 2021 as well. 49% of respondents play or has someone in their household who plays video games. From the wildest passes and the biggest dunks to the final serve, Atmosphere Sports is streaming sports back to the center with live scores, highlights, and more. Given Nikes growth opportunities, these predictions seem to be realistic for me. This equates to about 5% royalty for every pair of Air Jordans sold, or roughly $10 to $15 per shoe. Advent International, Blackstone Inc., CVC Capital Partners, and KKR & Co. are reportedly interested in investing in the DFL, which oversees Germanys top two Bundesliga divisions. You also have the option to opt-out of these cookies. Nike offered the 21-year-old Jordan $500,000 per year for five years. But when newer retros of the first Air Jordan hit the market, it was clear that Nike was back as the premiere sneaker brand in the game today. Overall, looking at the entire year, Nikes reported earnings jumped by 19 percent to $44.5 billion. The revenue of the Jordan Brand increased by 31% in 2021 in comparison to 2020. My calculations are based on the following information as presented below: Based on the above assumptions, I calculated the following results: Nikes P/E Ratio is currently 31.91. Sportico reports: . The story will focus on how Nikes nascent basketball department signed Jordan in his rookie year, a deal that became perhaps the most lucrative athlete-brand partnership in history. The Jordan Brand is far from done. Still, all of coupled with general unrest over resellers gobbling up sneaker stock online and hiking up prices secondhand has not slowed Nikes dominance. From my point of view, Nike has several growth drivers, which will contribute to their growth in the future. T&Cs apply. World No. The Importance Of Brand Building And How To Create A Brand, What Is The Brand Asset Valuator Model? Overview and forecasts on trending topics, Industry and market insights and forecasts, Key figures and rankings about companies and products, Consumer and brand insights and preferences in various industries, Detailed information about political and social topics, All key figures about countries and regions, Market forecast and expert KPIs for 600+ segments in 150+ countries, Insights on consumer attitudes and behavior worldwide, Business information on 70m+ public and private companies, Detailed information for 35,000+ online stores and marketplaces. Adidas athletic footwear sales grew about 20%, passing Jordan again in revenue, to become the second-ranked athletic footwear brand for the year. This category only includes cookies that ensures basic functionalities and security features of the website. This all comes after a 15% gain last year despite the COVID-19 pandemic dragging down other divisions of the company. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. In my opinion, the Nike stock is attractive for long-term investors who primarily focus on dividend growth. The Australian Open reported preliminary figures surpassingthe events previous record of 812,714 in 2020, despite schedule disruptions due to rain and a heat wave. Mar 2, 2021 Shoe Endorsement Deals "His Airness" Still King of Signature Sneakers . The end result? Every year, the iconic NBA legend levels up his brand with new colorways for his coveted sneaker collection. Mondays Answer 80 Pine Street Suite 3202 New York, NY 10005, Nike, Jordan Score With Jordan Brands Record Haul, More U.S. Investors Showing Interest in Serie A Media Stake, Based on those figures, Jordan may have earned. From his in-game stats to endorsement deals, Jordan has worked to ensure his household name is expanded beyond the basketball court. In my analyses, I aim to identify companies that have strong competitive advantages over their competitors (for example, a strong brand image, cost advantages, special know how, strong pricing power, a strong distribution network, etc.) For Jordan, every move he made on and off the court was about his ability to get a win. 13.17%. are so good, some are saying theyre better than their Moms French Toast. As of 2022, the Nike brand was valued at more than 33 billion U.S. dollars, which is an increase of nearly three billion U.S. dollars from the previous year. At $6.3B a year ago, quarterly revenue jumped to $12.3B while $NKE hit a record high of $152 today. Wendys Homestyle French Toast Sticks might be the best thing to ever happen to breakfast. Jordan Brand earned $19.4 billion in revenue over the last five fiscal years, a fact initially noted by Neon Money Club. Corporation, for example, has a dividend yield of 4.07%), Nikes dividend growth rate of 11.27% and the low dividend payout ratio of only 30.61% makes them an attractive long-term investment. To use individual functions (e.g., mark statistics as favourites, set MJ did the retirement-return dance twice in his illustrious career before finally calling it quits in 2003. Another risk I see in investing in Nike is the intense competition the company faces. Front Office Sports covers the influence of sports on business and culture. dollars)." Here are two more data points to include when discussing the rise of women's sports In Nike's year-end earnings, the co. announced its "womens products outperformed mens and represented 24% of the total merchandising revenue for the company. Collaborations with rappers like Travis Scott came to fruition. Brand Storytelling In A Nutshell, What Is Brand Activation? "Nike's Revenue Worldwide from 2016 to 2021, by Product Category (in Million U.S. Accessed May 02, 2023. https://www.statista.com/statistics/888793/nikes-revenue-by-product-category-worldwide/, Nike. Nikes revenue growth reflects the companys robust and stable business model as well as its strong brand image. Nikes Jordan Brand brought in $5.1 billion in fiscal 2022, and his Airness pockets a reported 5% of that under his deal with Nike. Jordan Brand revenue hit $4.8 billion in 2021, up 31% from the previous year's $3.6 billion. The relationship between Jordan and Nike has been made into a feature film, directed by Ben Affleck, who also plays Nike co-founder Phil Knight. This means that in 2021, the Jordan Brand accounted for 13.17% of Nikes wholesale revenues. Choose. The movie, titled AIR and produced by Amazon Studios, will premiere globally in theaters on April 5. That in itself is a testament to the relevance and massive pull of Michael Jordan's name attached to a sneaker brand. Tripling revenue from your womens apparel business in a single quarter is absolutely eye-popping. Read more to see how Wit can help you create supercharged digital experiences. Jordan Brand Revenue Soars 31% to $4.7 Billion Nike's Jordan Brand continues its hot streak with revenue up 31% for the fiscal year ended May 31 to $4.7 billion. Though the bottom line has been glorious for the Swoosh and the Jumpman, the last year has not been without its complications. The company reported this week their earnings nearly doubled year-to-year in the last quarter of its 2021 fiscal year a period ending on May 31 up 96% to $12.8 billion. The story will focus on how Nikes nascent basketball department signed Jordan in his rookie year, a deal that became perhaps the most lucrative athlete-brand partnership in history. The DFL, which is expected to agree on the talks at a meeting in early February, will consider both domestic and international rights, according to Bloomberg. I wrote this article myself, and it expresses my own opinions. In 2021, the DFL terminated plans to sell a 25% stake in its overseas broadcasting rights following pushback from clubs. At this rate, 2021 could end up being Nikes biggest year ever. ** Others include all other categories and certain adjustments that are not allocated at the category level. Jordan Brand Revenue Soars 31% to $4.7 Billion Nike's Jordan Brand continues its hot streak with revenue up 31% for the fiscal year ended May 31 to $4.7 billion. I have used Nikes current discount rate (WACC) of 8.5% to calculate the companys fair value. According to data from Seeking Alpha, analysts are currently estimating a revenue growth for Nike of between 7% and 14% year-over-year in the periods between 1Q23 and 4Q24. When people flaunted pairs on social media. will remain one of the company's growth drivers. How did the Jordan brand continue to dominate the sports apparel market, even after 17 years since its main man walked away from the sport for good? Adidas ended up passing and committing likely one of the biggest (if not the biggest) missteps in its corporate history. Dollars). The NBA legend and owner of the Charlotte Hornets made $90 million in salary over his NBA career. Skechers sales grew by about 40% for the year, along with Brooks, Vans, and Converse. This field is for validation purposes and should be left unchanged. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. The exact amount? It was quite a jump from its initial cost of $125 just a few weeks prior in November. Do you plan on watching the NHL All-Star Game this year? They are perfectly crispy on the outside. Jordan Brand revenue hit $4.8 billion in 2021, The Australian Open broke its single-day attendance mark with. However, due to the enormous strength of Nikes brand image as well as Nikes endorsements with the best athletes in the world, I expect the company will be able to assert itself against its competitors in the long-term. The first Grand Slam of 2023 drew better-than-expected attendance with record prize money up for grabs.