Jordan Brand Financial Performance and Contribution to Nike- As one of the biggest companies in Apparel Industries, Nike Inc has some of the popular brand that many people have known about its brand. One of the brands are Jordan Brand that has contribute to Nike Inc financial performance from time to time.
The History and Business Development of Nike Inc
Historically, Nike was founded on January 25, 1964, with initial Name Blue Ribbon Sports (BRS) Phil Knight and Bill Bowerman. In the beginning, Blue Ribbon Sports was the distributor of Japanese Shoemaker company, namely Onitsuka Tiger (Asics). In 1970s, BRS decided to separate with Onitsuka Tiger and want to produce its products. Finally, they launched the own brands “Nike” with Swoosh logo design by Carolyn Davidson.
Along with business development, Nike has sold many products in the market and their popularity has getting bigger. In 2003, Nike sacrificed US$309 million to acquire Converse. Nike also acquire Cole Haan, Umbro, and Hurley International but Later All of them was sold again to other company. To Date, Nike’ products offerings focused on Men’s, Women’s, and Kids.’ Furthermore, beside Nike Brand, this company has produced and distributed Jordan Brand and Converse. To Support their marketing and distribution all of products, Nike build some retail stores. Overall, Nike has U.S. Retail Stores around 344 office and Non-U.S. Retail Stores around 702 offices. Overall, based on the business performance, Nike is the largest seller of athletic footwear and apparel in the world. In the apparel and footwear business, Nike also has the competitors, namely Adidas, ASICS, Li Ning, lululemon athletica, Puma, Under Armour and V.F. Corporation, among others.
The Assets, Liabilities, and Equities of Nike Inc
| Years | Assets | Liabilities | Equities |
|---|---|---|---|
| (In millions) | (In millions) | (In millions) | |
| 2022 | $ 40,321 | $ 25,040 | $ 15,281 |
| 2021 | $ 37,740 | $ 24,973 | $ 12,767 |
| 2020 | $ 31,342 | $ 23,287 | $ 8,055 |
| 2019 | $ 23,717 | $ 14,677 | $ 9,040 |
| 2018 | $ 22,536 | $ 12,724 | $ 9,812 |
| 2017 | $ 23,259 | $ 10,852 | $ 12,407 |
| Source: Nike Annual Report, 2018-2022 | |||
Financially, after more than 50 years in doing the business. Nike has become the global company with billion of Assets and Equities. Based on the balance sheet of the company in 2022, Nike has Assets around USD 40 billion and it has increased if it was compared to Nike’s Assets in 2017 with value around USD 23 million. The Equities also has increased from USD 12 billion in 2017 and it had become USD 15 billion in 2022.
The Revenue and Net Income of Nike Inc
| Years | Total Nike Revenue | Net Income |
|---|---|---|
| (In millions) | (In millions) | |
| 2022 | $ 46,710 | $ 6,046 |
| 2021 | $ 44,538 | $ 5,727 |
| 2020 | $ 37,403 | $ 2,539 |
| 2019 | $ 39,117 | $ 4,029 |
| 2018 | $ 36,397 | $ 1,933 |
| 2017 | $ 34,350 | $ 4,240 |
| Source: Nike Annual Report, 2018-2022 |
Based on the business performance and sustainability, Nike Inc also generated net income from time to time. Based on the data of income statement, Annual Report from 2017 to 2022, Nike consistently Gaining the net income. The revenue of Nike has increased from 2017 with value around $ 34,350 million and in 2022, it had become 46,710. Furthermore, the net income also relatively stable. The net income of Nike in 2017, 2018,2019,2020,2021, and 2022 was $ 4,240 billion, $ 1,933 billion, $ 4,029 billion, $ 2,539 billion, $ 5,727 billion, and $ 6,046 billion, respectively.
Jordan Brand and Financial Contribution to Nike Inc
The initial partnership between Michael Jordan and Nike Started on October 26, 1984. Furthermore, Nike Released Air Jordan Shoes and become successful. To Date, Jordan Brands has some products on athletic, casual footwear, apparel and accessories focused on basketball using the Jumpman trademark logo.
The popularity of Air Jordan was influenced by the tremendous success of Michael Jordan as an NBA player. Historically, he was born on Brooklyn, New York, February 17, 1963, and many successful careers as basketball athlete when playing with Chicago Bulls. With Scottie Pippen, and Dennis Rodman, he has many successes in Bulls. He has won six-times (1991,1992,1993, 1996,1997,1998) NBA competitions. As an individual player, he also won five times NBA Most Valuable Player (MVP) in 1988, 1991, 1992, 1996, and 1998. To date, after his retirement in Basketball, he still involved in basketball as the owner of Charlotte Hornets, one of NBA teams.
The Jordan Brand Financial Performances and Contributions to Nike Inc
| Years | Jordan Brand’ Revenue | Total Nike Revenue | Percentage of Contributions |
|---|---|---|---|
| (In millions) | (In millions) | (%) | |
| 2022 | $ 5,122 | $ 46,710 | 11% |
| 2021 | $ 4,780 | $ 44,538 | 11% |
| 2020 | $ 3,609 | $ 37,403 | 10% |
| 2019 | $ 3,138 | $ 39,117 | 8% |
| 2018 | $ 2,856 | $ 36,397 | 8% |
| 2017 | $ 3,098 | $ 34,350 | 9% |
| Source: Nike Annual Report, 2018-2022 | |||
After the retirement of Michael Jordan, Nike also developed the Jordan Brand with some products. The Jordan Band still contributes financially to Nike business. Based on the report of Nike Annual Report from 2017 to 2022. Jordan Brand contributes around 8%-11% to total revenue of Nike. The revenue of Jordan brand relative stable. The revenue of Jordan Brand in 2017, 2018, 2019, 2019, 2020, 2021, 2022 is $ 3,098 million, $ 2,856 million, $ 3,138 million, $ 3,609 million, $ 4,780 million, and $ 5,122 million, respectively. Nowadays, Jordan Brands has some products including.
- Jordan Shoes (Air Jordan 1, Air Jordan 11, Air Jordan 13, Jordan Retro, Basketball Shoes, Lifestyle Shoes, Russell Westbrook Shoes, and Women’s Jordan Shoes).
- Jordan Clothing (Basketball Clothing, Tops & T-Shirts, Hoodies, Jackets, Shorts, Pants, Tights & Leggings).
- Jordan Gear (Basketball Gear, Training Gear, Bags & Backpacks, Hats & Beanies, and Socks).
Bibliography of Jordan Brand Financial Performance and Contribution to Nike
Nike Inc. 2023. Annual Report 2018-2022. Accessed via https://investors.nike.com/investors/news-events-and-reports/?toggle=reports on April 16th, 2023.
Wikipedia. 2023. Michael Jordan. Accessed via https://en.wikipedia.org/wiki/Michael_Jordan on April 15th, 2023.
Wikipedia. 2023. Air Jordan. Accessed via https://en.wikipedia.org/wiki/Air_Jordan on April 15th, 2023.