To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. The dividend went up 12 percent in comparison to the previous year, indicating that the Nike stock is especially attractive for dividend income-investors. These cookies do not store any personal information. I have used Nikes current discount rate (WACC) of 8.5% to calculate the companys fair value. That 10-part series further boosted the stock of the iconic Jordan brand. In fact, Nike saw greater revenue growth from womens sports across its portfolio than mens over the course of Q4. Head on over to the NBA Store's Hardwood Classics section. Nous, Yahoo, faisons partie de la famille de marques Yahoo. 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. Meanwhile, Jordans deal with Nike included a clause for royalties. pic.twitter.com/4xjEk8OzOt Boardroom (@boardroom) June 25, 2021 Nike's revenue worldwide from 2016 to 2021, by product category (in million U.S. dollars) [Graph]. Subscribe to our newsletter to get the latest news when it matters most. . The NBA legend and owner of the Charlotte Hornets made $90 million in salary over his NBA career. In just six years upon his entry into the league, Michael Jordan was well on his way to becoming the sport's icon. By comparison, the Jordan Brand alone made almost as much as one of its competitors entire portfolios. The fact that the Jordan Brand is Nike's second most important product category after Sportswear, shows us the enormous importance that the Jordan Brand has for the company. See what's happening with the Jordan Brand. By June, the revenue raked in by its merchandise alone was at $3.6 billion, 15% higher than the previous year. Just last week, Jordan added 11 more WNBA players to its roster, producing its largest womens roster ever. Show publisher information German soccers governing body is reportedly set to resume discussions on selling a stake in a new media rights subsidiary. Zelony discusses the importance of team relationships in the corporate world. "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. This means that in 2021, the Jordan Brand accounted for 13.17% of Nikes wholesale revenues. With the "three-peat" from 1991 to 1993, MJ's stock continued to skyrocket. Tomorrow is the last day to nominate for Rising 25! This is an increase of 5% in comparison to 3Q21, where a revenue of $10.357 billion was generated. 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. American basketball player and businessman (born 1963). The apparel giant was willing to stick their neck out for the budding star, so they decided to pay every penny. 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 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. Nike's wholesale equivalent revenues worldwide from the fiscal years of 2020 to 2022, by segment. Nike (NYSE:NKE) generated a revenue of $10.871 billion in 3Q22. In 2021, the Jordan Brand accounted for 13.17% of Nikes wholesale revenues. At this rate, 2021 could end up being Nikes biggest year ever. That is an astounding number, and it speaks to the ridiculous amount of profit Nike must be bringing in as a whole. The Jordan Brand just crossed $5 billion in annual revenue for the first time. Directly accessible data for 170 industries from 50 countries and over 1 million facts: Get quick analyses with our professional research service. This included dividends to the amount of $484 million and share repurchases of $1.2 billion. Demands shifted to the new guys on the market, and away from the once sought-after Jordans. We can say that Nike released its 2021 fourth quarter revenue and profits and 2021 fiscal earnings at the end of June. Michael Jordan doesnt own his brand, but he does get a cut of Nikes revenue. The Australian Open generated $405.3 million in economic benefit in 2021 and 2022, per Nielsen Sports. Due to the enormous strength of the Jordan Brand image in combination with the strong financial results it has brought Nike in the past, I assume that the Jordan Brand will continue to be one of Nike's growth drivers in the future. As Hatfield put his handiwork forward, Nike provided more traction and attention to the brand. The Jordan Brand is far from done. 13.17%. Jordan Brand revenue hit $4.8 billion in 2021. 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. "Nike's Revenue Worldwide from 2016 to 2021, by Product Category (in Million U.S. Jun 30, 2021. It just goes to prove Michael Jordan is absolutely bulletproof. Choose wisely. According to Essentially Sports, Jordan gets 5% from each Air Jordan sale; this is how he has been able to make $150 million per year. China And 'The Last Dance' Propel Nike's Jordan Brand To - Forbes Wendys Homestyle French Toast Sticks might be the best thing to ever happen to breakfast. Adidas ended up passing and committing likely one of the biggest (if not the biggest) missteps in its corporate history. 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. Serie A which generated $2.7 billion in revenue during the 2020-21 season, per Deloitte is looking to triple its overseas media rights revenue. Whatever it takes to start your day the right way with these sweet and crispy delights. The Inside Story Of How Michael Jordan Became The World's - Forbes In a press release published by Under Armour, the rival company reported $5.7 billion in. NIKE revenue for the twelve months ending February 28, 2023 was $50.626B, a 8.13% increase year-over-year. 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. *Odds/lines subject to change. Big Screen Deal Copyright 2023 Front Office Sports. Sportswear & sporting goods companies by worldwide revenue 2021; For example, certain consumer trends could change, and if Nike doesn't forecast these changes early enough, it could impact their business results. Does Nike Still Have Factories In Indonesia? This data highlights that it was one of the major growth drivers for Nike when comparing fiscal year 2021 with fiscal year 2020. I rate Nike as a buy, due to its strong brand image, endorsements with some of the worlds top athletes, the contribution of the Jordan Brand to the companys success as well as their overall growth prospects. It was. Learn more about how Statista can support your business. The companys low dividend payout ratio also gives them room for future dividend enhancements. In 2022, the Adidas Group generated over 22.5 billion euros in revenue. My valuation model shows that Nike is currently undervalued with an upside of 7.4%. Please. With the help of film director Spike Lee, Air Jordans were more than just basketball shoes. Former NBA player, Charlotte Hornets team owner, Nike affiliate. Vous pouvez modifier vos choix tout moment en cliquant sur le lien Tableau de bord sur la vie prive prsent sur nos sites et dans nos applications. Michael Jordan is the first NBA player to be a billionaire. Nike. Thus, the birth of the first Air Jordan. Michael Jordan likely made more than double his career NBA salary earnings in 2022 alone thanks to a decades-old licensing deal. The Jordan Brand and its eponym, Michael Jordan, this month pledged $100 million over ten years to organizations dedicated to racial equality, social justice and education access. The company has reportedly considered an investment since October 2022. How much does LeBron James make from Nike? Several other top leagues have sold stakes in media arms in the past couple of years. At $6.3B a year ago, quarterly revenue jumped to $12.3B while $NKE hit a record high of $152 today. How do you even begin to fathom these numbers? This work is evident in the consistent relevance of his shoes nearly two decades since he last played basketball. Many people learned through his on-court presence and in the documentary The Last Dance that Michael Jordan is one of the most competitive and strategic athletes. T&Cs apply. Last week, JPMorgan Chase & Co. expressed interest in investing up to $1.1 billion in Serie As media unit. In terms of valuation, I have used the EPS Multiplier Method to determine the intrinsic value of Nike. The end result? 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? Sales and operating results for Jordan Brand products are reported within the respective NIKE Brand geographic operating segments. Chart. Jordan is getting around 10-12 dollars per shoe and he is selling millions. It redefined an entire culture of fashion right before our very eyes. Currently, you are using a shared account. You also have the option to opt-out of these cookies. The brand signed Kobe for a four-year deal that was worth $10 million a year. 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. The Seeking Alpha EPS FWD Long Term Growth (3-5Y CAGR) Rate of Nike is 15.68%. The Jordan Brand Reaching $5B In Annual Revenue Is Proof That Michael Is this happening to you frequently? Every year, the iconic NBA legend levels up his brand with new colorways for his coveted sneaker collection. At the brand level, both Nike and Jordan underperformed the market and ceded share in the first half of 2021, compared to 2020. This provides further evidence that the company is currently undervalued. So, if you are looking for a less expansive stock from the sporting goods sector, you could instead have a look at the stocks of Adidas, Under Armor (P/E (FWD) Ratio of 20.86) or V.F. Ahead of the Game: Nike Rules the Sneaker World - Statista Infographics 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. Accessed May 02, 2023. https://www.statista.com/statistics/888793/nikes-revenue-by-product-category-worldwide/, Nike. Nike's image could then be affected negatively which could subsequently damage the companys brand value. Corporation (VFC), it can be highlighted that Nike's EBIT margin of 15.40% is only below Lululemon Athletica (which has an EBIT margin of 21.97%), but is higher than adidas (9.37%), Puma (8.57%), Under Armour (9.23%) and V.F. 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. 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. Brand Association In A Nutshell, An Entire MBA In Four Weeks By FourWeekMBA, Business Strategy Book Bundle By FourWeekMBA, Digital Business Models Podcast by FourWeekMBA, [MM_Member_Data name=membershipName] Home Page. Based on these strengths and low dividend payout ratio, as well as its growth prospects through direct sales that are supported by the Jordan Brand, I expect that Nike will be able to keep increasing its dividend in the years to come. Today, Nikes revenue is 93% higher than the revenue of competitor Adidas. Where Nike specifically is concerned Jordan is quite simply the sneaker giants biggest source of income. Nikes direct sales were up $4.6 billion, which is an increase of 15% compared to the same period of the previous year. The Enduring Popularity of Air Jordans and 'His Airness' Anne of I expect the company to still have huge growth potential through direct sales. 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. The influence of sports on business and culture. How Cisco helps connect and protect the league during the NFL Draft. I have decided to make more conservative assumptions and therefore, I assume an EPS growth rate of 12% for the company over the next 10 years. There were shirts, hoodies, even, Check Out Exclusive Michael Jordan Merchandise at the NBA Store. $2.1 billion: Jordan's net worth rose $300 million over the past year, thanks to an increased value for the Hornets and $145 million in endorsement earnings. The Jordan Brand generated $3.6 billion of wholesale equivalent revenue in fiscal 2020. . The exact amount? It also came with a really cool and captivating TV commercial. This third installment was also the first pair that had the Jumpman image on the tongue, instead of the "Wings" logo used in the previous two. Youre going to want to set your alarm a little earlier. From the ways that athletes, executives, musicians and creators are moving the business world forward to new technologies, emerging leagues, and industry trends, Boardroom brings you all the news and insights you need to know At the forefront of industry change, Boardroom is committed to unique perspectives on and access to the news, trending topics and key players you need to know. On Mary J. Bliges I Can Love You, Lil Kims featured verse opens with If I told you once, I told you twice. That sentiment could not be more valid for the Jordan Brand. Initially introduced in 1985, the shoe has significant popularity today with major collaborations with brands like Supreme, A Ma Maniere, Off-White, and rapper, Travis Scott. How many companies does Michael Jordan own? PDF Nike, Inc. Reports Fiscal 2021 Fourth Quarter and Full Year Results The Nike contract after that one is said to have been worth anywhere in between $20m-$40m per annum for eight years. to see how Wit can help you create supercharged digital experiences. How much money does Jordan get from his shoes? What Is The Meaning Of Product Development? When you buy products through Boardroom's links, we may earn an affiliate commission. From the kicks, we now get to the merch. afficher des publicits et des contenus personnaliss en fonction de vos profils de centres dintrt; mesurer lefficacit des publicits et contenus personnaliss; et. Another U.S.-based financial services company has expressed interest in the media arm of Italys top soccer league. 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. My valuation model indicates that Nike is currently undervalued with an upside of 7.4%. The size of a potential stake, structure, or timeline has not been decided. By. Revenues for the NIKE Brand were $44.4 billion, up 5 percent on a reported basis and 6 percent on a currency-neutral basis, driven by double-digit growth in NIKE Direct, partially offset by slight declines in wholesale revenues. Read more to see how Wit can help you create supercharged digital experiences. Jordan Brand revenue hit $4.8 billion in 2021, The Australian Open broke its single-day attendance mark with. For the first time in its 50-year history, Nike has topped $12B in quarterly sales.At $6.3B a year ago, quarterly revenue jumped to $12.3B while $NKE hit a record high of $152 today.Jordan Brand grew 31% with ~$5B in 2021 earnings while its womens biz nearly tripled in Q4. 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 Reached Over $5 Billion In Annual Revenue For - MSN Just like that, a sneaker revolution commenced. AIR will release globally in theaters on April 5, 2023. It is mandatory to procure user consent prior to running these cookies on your website. This equates to about 5% royalty for every pair of Air Jordans sold, or roughly $10 to $15 per shoe. They ended up raking in $126 million during the first year of sales alone. Celebrities wore them, turning it into a status symbol as a part of the elite. Newsweek AMPLIFY participates in various affiliate marketing programs, which means we may get paid commissions on editorially chosen products purchased through our links to retailer sites. Si vous ne souhaitez pas que nos partenaires et nousmmes utilisions des cookies et vos donnes personnelles pour ces motifs supplmentaires, cliquez sur Refuser tout. But it didn't take long before CEO Mark Parker came up with the "Edit and Amplify" strategy, as a response. According to Mike Ozanian of Forbes, Jordan recently increased his ownership stake in the Charlotte Hornets from 80 percent to 89.5 percent, which put MJ over the billionaire threshold. 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. 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. 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. Table of Contents Our Jordan Brand designs, distributes and licenses athletic and casual footwear, apparel and accessories predominantly focused on basketball using the Jumpman trademark. If nothing else, its only left them hungrier to retool and improve top to bottom and the numbers dont lie. These cookies do not store any personal information. The NBA Store features some of MJ's rarest uniforms. In fact, with over $12 billion in reported revenue, Nikes chief financial officer called it their largest quarter ever.. Gross profit went up from $4.719 billion in 3Q21 to $5.067 billion in 3Q22, resulting in a rise of 7%. Si vous souhaitez personnaliser vos choix, cliquez sur Grer les paramtres de confidentialit. For a short while, Adidas were the big boys in the sneaker scene. Jordan. Nike.com That swell helped push the year-over-year sales gain for the company to 19%, bringing their total revenue for the year to the $44.5 billion number. Michael Jordan earns a reported 5% on Jordan Brand sales in his licensing deal with Nike. The league is set to make $658 million from international media rights from 2021-24. The gain comes on the heels of a 15% gain last year. Together they ceded more than 300 basis points in share in 2021. In Q4 sneakers grew over 90% in demand, Donahoe said, and on the Swooshs digital platforms, saw nearly 80% growth in monthly active users.. Entering text into the input field will update the search result below. It also helped that Jordan had a stellar rookie year, making it easier to release the sequel pair. 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.
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