Nike (NYSE:NKE) scored one of the biggest coups in retail history when it signed Michael Jordan to a $2.5 million endorsement deal in 1984 that was revolutionary at the time in creating an entire product marketing strategy around a single athlete. The continued global sensation of the Air Jordan basketball shoe line eventually led to the creation of the Jordan brand in 1997 as a major subsidiary of the company and dominant force in the footwear industry.
The Jordan Brand primarily sells basketball shoes, with the Air Jordan line being the flagship product. The brand releases classic retro editions and new models of Air Jordans regularly, including popular versions like Air Jordan 1, Air Jordan 3, Air Jordan 4, Air Jordan 5, Air Jordan 11, and the latest Air Jordan 40. The sneakers are still revered for their design, performance, and cultural significance in sneaker culture and basketball. In addition to basketball shoes, the Jordan Brand offers a range of other products, including athletic apparel such as jerseys, t-shirts, hoodies, shorts, and accessories. The brand also produces signature models and shoes for other notable athletes sponsored by Jordan.
Today, the Jordan Brand is estimated to be worth more than $10 billion and is not showing any signs of slowing down. Nike (NYSE:NKE) recently opened a new World of Flight store in Philadelphia, which is the Jordan Brand’s sixth flagship retail location and the first in an ambitious plan to grow the Jordan Brand retail experience in the U.S. The Philadelphia announcement follows the 2024 opening of Nike & Jordan World of Flight Mexico City and previous World of Flight openings in Beijing (2024), Seoul (2023), Tokyo (2023), and Milan (2022).
“As Jordan Brand enters its next era of greatness, we do so with an eye for furthering our connection to our community. World of Flight is a direct portal to our brand and represents the pinnacle of basketball culture,” stated Jordan brand President Sarah Mensah.
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The Jordan Brand is estimated to be worth more than $10 billion, which accounts for a significant portion of Nike’s (NKE) market cap of about $96 billion. The Jordan Brand by itself is worth more than companies like Birkenstock (BIRK), Crocs (CROX), Gap (GAP), Urban Outfitters (URBN), and Levi Strauss (LEVI).
Over the years, the Jordan brand has also provided a major lift to retailers such as Foot Locker (FL), Finish Line, JD Sports (OTCPK:JDSPY), and Champs. Media players like Netflix (NFLX), Warner Bros. (WBD), and Amazon (AMZN) have also benefited through well-received documentaries (The Last Dance) and movies (Air, Space Jam, etc.). Michael Jordan has also been closely linked with Gatorade (PEP) and Hanesbrands (HBI) through major advertising campaigns. Jordan is also an equity investor in DraftKings (DKNG).