Billionaire Michael Jordan Becomes an Angel for Nike in Troublesome Time Courtesy of Historic $7 Billion Figure
Nike is the 99th most valuable company globally, with a market cap of $143.01 billion. However, this three-figure net worth isnât enough to guarantee profits. Notably, in the last three months, the company generated $12.6 billion in revenue, representing a 2% decline. Despite having modest expectations ahead of the fourth quarter, Nike fell short of the low bar. But, Michael Jordan is here to rescue!
Just like his on-court performances, Jordan has turned out to be an angel for Nike, offering a significant $7 billion in sales. To share this news among the spectators, Kurt Badenhausen penned on X, âTrainwreck quarter for Nike: Revenue down 2%, missed estimates. Lowers â25 revenue guidance to âmid single-digits.â Stock down 16% in pre-market trading, down 27% YTD. One bright spot: Jordan Brand.â
Trainwreck quarter for Nike:
âȘïž Revenue âŹïž 2%, missed estimates
âȘïž Lowers ’25 rev guidance to âŹïž “mid single-digits”
âȘïž Stock âŹïž 16% in pre-market trading
âȘïž Stock âŹïž 27% YTD
âȘïž One bright spot: Jordan Brandhttps://t.co/hdBpIy4Gpj
â Kurt Badenhausen (@kbadenhausen) June 28, 2024
Notably, these fiscal year-end results are wholly due to the Michael Jordan-owned Jordan Brand, founded in 1984 with an endorsement contract. Since then, Jordan has been the strongest performer of Nikeâs multiple divisions, with an impressive 6% sales growth. The hype around the Jordan Brand is such that the revenue has doubled since 2020 as it expanded into non-basketball items, womenâs gear, and international sales.
Although its âperformanceâ basketball shoe market has not been making much profit over the last decade, the âretroâ segment has shown enough growth to keep up.
