How Cisco helps connect and protect the league during the NFL Draft. I aspire to help you build an investment portfolio consisting of high-quality companies that are particularly attractive in terms of risk and reward (for example, due to their wide economic moat, high financial strength, high profitability, attractive valuation, growth potential and expected return). However, the companys current P/E (FWD) Ratio of 31.91 compared to Adidas (P/E (FWD) Ratio of 11.58) proves that you have to pay a substantial premium to buy the Nike stock compared to its competitors. Jordan is one of the most influential brands within Nike. Brand Asset Valuator, What Is The Brand Essence Wheel? Nikes revenue growth reflects the companys robust and stable business model as well as its strong brand image. LOOKS LIKE the wings on the Air Jordan 1 logo are buoying the Jordan Brand to new financial heights. mesurer votre utilisation de nos sites et applications. How much money does Jordan get from his shoes? Michael Jordan makes an estimated $400 million per year from Nike's iconic Air Jordan Brand today. Aryna Sabalenka, who entered as the No. 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. "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. Aerial Powers on Brittney Griner, WNBA Revenue Sharing & Jordan Brand Goldman Sachs potential investment in Serie A follows a plan by the league to spin off an upcoming media unit to boost revenue after the league failed to sell a 10% stake worth $2 billion to three investors in 2021. Choose Wendys Homestyle French Toast Sticks today. The revenue of the Jordan Brand increased by 31% in 2021 in comparison to 2020. It also helped that Jordan had a stellar rookie year, making it easier to release the sequel pair. Sportico conservatively estimates MJ's take at $150 million. ", Nike, Nike's revenue worldwide from 2016 to 2021, by product category (in million U.S. dollars) Statista, https://www.statista.com/statistics/888793/nikes-revenue-by-product-category-worldwide/ (last visited May 02, 2023), Nike's revenue worldwide from 2016 to 2021, by product category (in million U.S. dollars) [Graph], Nike, July 20, 2021. Fortunately, Jordan Brands continued investment in womens gear turned out to be a coup with regards to growth, and that commitment is getting a double-down. Adidas athletic footwear sales grew about 20%, passing Jordan again in revenue, to become the second-ranked athletic footwear brand for the year. He is the co-founder and chairman emeritus of Nike, Inc., and was previously chairman and CEO of the company. Nike's Jordan Brand revenue was up 31% for the fiscal year ended May 31 to $4.7 billion, beating their five-year plan of $4.5 billion. Nike president and CEO John Donahoe trumpeted the companys swift recovery from the pandemic. Corporation (13.79%). dvelopper et amliorer nos produits et services. Nike's wholesale equivalent revenues worldwide from the fiscal years of 2020 to 2022, by segment. Get on our list for weekly sports business, industry trends, interviews, and more. At the time when Nike and Michael Jordan signed the contract, competitor adidas was still 50% larger by revenue than Nike. Among the performances trumpeted by the Swooshs president and CEO John Donahoe was the growth of its in-house Jordan Brand. Sales and operating results for Jordan Brand products are reported within the respective NIKE Brand geographic operating segments. This field is for validation purposes and should be left unchanged. The 15% revenue growth in Nike's direct sales is evidence of the sporting goods manufacturer's successful online strategy. How many companies does Michael Jordan own? In my view, the premium, which you pay on the Nike stock in comparison to its competitors, is justified especially due to Nike's strong brand image, which results in a long-term competitive advantage over its rivals from the sporting goods manufacturer industry. Jordan Tops All-Time Athlete Earnings List of a Billionaires Dozen When the league really wanted to take things to the next level, they knew fan engagement was a must and for that, they turned to. What percentage of Jordan Brand does Jordan own? Consumer & Brand Reports. If you have an ad-blocker enabled you may be blocked from proceeding. That is an astounding number, and it speaks to the ridiculous amount of profit Nike must be bringing in as a whole. [Online]. #1 Michael Jordan: $90-100 million/year, Jordan Brand On the one hand, its kind of ridiculous that a player whos been out of the league for 15 years is far and away the highest-paid athlete in the world when it comes to sneaker endorsements, but the Air Jordan line of basketball shoes is the whole reason players. They are perfectly crispy on the outside. The biggest apparel brand in the world . I assume that the Jordan Brand will continue to make an important contribution to Nike's success in the future and. Dollars). In terms of market capitalization ($196.25 billion) and revenue ($46.82 billion), Nike is by far the largest sporting goods manufacturer in the world. The $162 million Nike made off Air Jordan in 1985 now . Michael Jordan And 'The Last Dance': By The Numbers - Forbes Learn more about how Statista can support your business. Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. The influence of sports on business and culture. The Seeking Alpha EPS FWD Long Term Growth (3-5Y CAGR) Rate of Nike is 15.68%. In 2022, the Adidas Group generated over 22.5 billion euros in revenue. (Vanessa Bryant has vocally opposed reseller culture online.) By. (July 20, 2021). In August, Bloomberg reported that the DFL was. Comparing Nike to its competitors, such as Adidas (OTCQX:ADDYY), Puma (OTCPK:PMMAF), Under Armour (NYSE:UA), Lululemon Athletica (LULU) and V.F. Nikes direct sales were up $4.6 billion, which is an increase of 15% compared to the same period of the previous year. Brooks, Converse, Vans, Under Armour, and Skechers footwear sales grew by more than half. 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. The Jordan Brand in particular also plays a major role here. PHOTO: Nike, UnSplash . It was the only Nike shoe line that soared in value, as total company revenue dropped by 38% due to store closures brought on by the COVID-19 pandemic. Nike offered the 21-year-old Jordan $500,000 per year for five years. If you are an admin, please authenticate by logging in again. Based on Nike's current valuation and long-term competitive advantages over its competitors, combined with the company's growth prospects, driven by increasing direct sales and revenue of its Jordan Brand, I rate Nike as a buy. Sportico reports: . Secondly, through Nike's partnerships with the best athletes in the world. Athletic Footwear & Apparel Industry - First Half Sales Results - The Please. Combining this technology with the new mid-cut design made spurred a new era in Air Jordans. There sure were a lot of telling Jordan tidbits in that documentary. AP. If there was ever any question about who remains the king of sneakers and sporting apparel, Nikes latest quarterly financial reporting ended that debate with a nice $44.5 billion mic drop. There were shirts, hoodies, even, Check Out Exclusive Michael Jordan Merchandise at the NBA Store. In fact, Nike saw greater revenue growth from womens sports across its portfolio than mens over the course of Q4. You also have the option to opt-out of these cookies. The fact that Nikes P/E (FWD) Ratio is currently 31.91, which is 10.27% below its average from the last five years (35.56), gives us yet another indicator that the company is currently undervalued. He earns $40 million annually which is just out of this world. 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. According to Womens Wear Daily, the most successful product from the Jordan Brand is the Air Jordan 1. The Jordan Brand is far from done. Jordan, LeBron, Durant Headline NBA's Biggest 2021 Sneaker Deals This brand image could be damaged if, for example, one of the athletes endorsed by Nike, was involved in a scandal. Today, we'll take a look at the iconic Jordan brand and why it is such a valuable commodity, both in the world of sports, fashion, and culture. 13.17%. The Trophy Room x Air Jordan 1, limited to just 12,000 pairs, has been scandalous from when it first leaked up through its messy release last Wednesday. I wrote this article myself, and it expresses my own opinions. In 2021, the Jordan Brand accounted for 13.17% of Nikes wholesale revenues. American basketball player and businessman (born 1963). Just last week, Jordan added 11 more WNBA players to its roster, producing its largest womens roster ever. This all comes after a 15% gain last year despite the COVID-19 pandemic dragging down other divisions of the company. The brand uses the Jumpman trademark. In my opinion, the Nike stock is attractive for long-term investors who primarily focus on dividend growth. How much does LeBron James make from Nike? It also came with a really cool and captivating TV commercial. These shoes became such a hot commodity, that fatal violence broke out among teens who couldn't afford it. Front Office Sports covers the influence of sports on business and culture. . When the league really wanted to take things to the next level, they knew fan engagement was a must and for that, they turned to Wit Sports. Meanwhile, Jordans deal with Nike included a clause for royalties. They put out one re-release of retros after the other, resulting in an oversaturation. Nike's revenue worldwide from 2016 to 2021, by product category (in million U.S. dollars) [Graph]. It is the silhouette of former Chicago Bulls NBA player and current Charlotte Hornets owner Michael Jordan. The relationship between Jordan and Nike has been made into a movie directed by Ben Affleck. Big Screen Deal If nothing else, its only left them hungrier to retool and improve top to bottom and the numbers dont lie. 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. 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. 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. Gross profit went up from $4.719 billion in 3Q21 to $5.067 billion in 3Q22, resulting in a rise of 7%. Though the bottom line has been glorious for the Swoosh and the Jumpman, the last year has not been without its complications. 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. This website uses cookies to improve your experience while you navigate through the website. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. NIKE annual revenue for 2020 was $37.403B, a 4.38% decline from 2019. This is due to various factors: One is the strength of Nike's brand image, which enables the company to sell its products directly to consumers and less through retailers. This category only includes cookies that ensures basic functionalities and security features of the website. In 2021, Nike's sportswear category generated approximately 15.1 billion U.S. dollars in revenue. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. Brand Activation In A Nutshell, What Is Brand Association? The bar for breakfast hasnt just been raised, its been completely replaced. Find out more here. Profit from the additional features of your individual account. The apparel giant was willing to stick their neck out for the budding star, so they decided to pay every penny. We also use third-party cookies that help us analyze and understand how you use this website. Trophy Room x Air Jordan 1 Backdoor Allegations and Blue Laces 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. For Jordan, every move he made on and off the court was about his ability to get a win. Jordan Brand Leads Nike Resurgence in Sales and Shares - Yahoo Sports But it didn't take long before CEO Mark Parker came up with the "Edit and Amplify" strategy, as a response. That 10-part series further boosted the stock of the iconic Jordan brand. The company lost its contract with Kobe Bryants estate when the Laker legends widow chose not to renew it. From my point of view, Nike has several growth drivers, which will contribute to their growth in the future. These jerseys are a perfect match for the sneakers you already own. Guy Oseary and Ashton Kutchers venture capital firm, Sound Ventures, has closed a $240 million During the NFL Draft, Rich Paul unveiled the pieces from his inaugural Klutch Athletics collection with New Balance Rich Paul is one of the most prolific minds in sports. With lower supplies, demands went back up and towards their direction. In my view, one of the biggest risks of investing in Nike is the danger the company would face if their brand image were to get damaged. will pay MJ an estimated $150 million in royalties in 2021, . But it wasnt just the Swoosh that continues to grow. You also have the option to opt-out of these cookies. 4-ranked ATP player Stefano Tsitsipas, who took home $1.6 million. During a conference call, Nike noted that the $5 billion revenue achievement was a 31 percent increase in sales during the companys recent fiscal year, up from the posted sales of $4.7 billion in fiscal year 21. Nike's Jordan division reported revenue of $3.6 billion, up 15%, in the company's fiscal year ending in May 2020, including the brand's first $1 billion quarter. And as his star power grew, so did the following of his sneakers. For one, MJ originally wanted to sign with Adidas before entering the NBA, Today, the Jordan brand has far transcended from just being about footwear. It was quite a jump from its initial cost of $125 just a few weeks prior in November. Sportswear & sporting goods companies by worldwide revenue 2021; 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. But the company big wigs in Germany deemed him too short at 6'6" because they were looking for a "seven-foot-tall guy.". This shows that an investment in Nike could not only contribute to the long-term growth of your investment portfolio, but also to the reduction of its volatility. are so good, some are saying theyre better than their Moms French Toast. dollars)." Lorsque vous utilisez nos sites et applications, nous utilisons des, authentifier les utilisateurs, appliquer des mesures de scurit, empcher les spams et les abus; et. "What's most exciting is we're still in the early stages of. In just six years upon his entry into the league, Michael Jordan was well on his way to becoming the sport's icon. "Jordan Brand Shines" : Nike's Michael Jordan Brand Sales Rose to $5 Both. Available: https://www.statista.com/statistics/888793/nikes-revenue-by-product-category-worldwide/, Nike's revenue worldwide from 2016 to 2021, by product category, Value of the global footwear market from 2018 until 2028, Size of the global activewear market 2021 to 2028, Wholesale sales of athletic footwear in the U.S. 2008-2021, Wholesale sales of sports apparel in the U.S. 2008-2021, Value of the leading global apparel brands 2022, Global sales of the top performance apparel, accessories, and footwear companies 2022, Global sales growth forecast of top athletic wear companies 2022, American customer satisfaction index: athletic shoe companies 2010-2021, Global revenue share of Nike in 2022, by product type, Domestic sales share of Nike worldwide from 2016 to 2022, Global revenue of Nike from 2016 to 2022, by sales channel, Global revenue of Nike from 2016 to 2021, by product category, Global gross profit of Nike from 2014 to 2022, Nike's North American revenue 2009-2022, by segment, Nike's revenue in EMEA 2016-2022, by segment, Nike's revenue in Greater China 2009-2022, by segment, Nike's revenue in Asia Pacific & Latin America from 2016 to 2022, by segment, Number of Nike's retail stores in the U.S. 2009-2022, Number of Nike's non-U.S. retail stores 2009-2022, Nike's marketing expenses worldwide from 2014 to 2022, The adidas Group's net sales worldwide from 2000 to 2022, Global share of adidas retail sales in 2022, by region, Share of adidas' net sales worldwide in 2022, by product type, Share of Puma's sales worldwide in 2022, by region, Share of Puma's consolidated sales worldwide in 2022, by product category, Under Armour's net revenue worldwide 2008-2021, Under Armour's net sales share worldwide in 2021, by region, Global wholesale revenue of Nike from 2020 to 2022, by customer segment, Nike and adidas' share of the footwear market as of 2017, by region, Nike's revenue in Japan 2009-2017, by segment, Global brand value of Nike from 2016 to 2022, Global brand value comparison of Nike and adidas from 2010 to 2022, Nike's quarterly revenue worldwide from 2017 to 2022, Nike's revenue in Central and Eastern Europe 2009-2017, by segment, Gross profit margin percentage of Nike worldwide from 2014 to 2022, Nike's revenue in emerging markets 2009-2017, by segment, Nike's revenue in Western Europe 2009-2017, by segment, Nike's DTC revenue share worldwide 2011-2015, Nike and adidas' share of the sports footwear market as of 2017, Forecast of Nike's global market share in athletic footwear 2011-2025, Nike's scope 3 GHG emissions 2015-2021, by segment, Retail price breakdown of Nike Cortez/Roshe running shoes 2015, Number of employees at ANTA Sports Products China 2012-2022, Genesco's sales share worldwide in FY 2022, by brand, Sales value of Patek Philippe Espaa 2013-2017, Nike's revenue worldwide from 2016 to 2021, by product category (in million U.S. dollars), Find your information in our database containing over 20,000 reports.