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Nike Air Jordans are losing resale value. Is sneaker culture moving on?

Published September 27, 2023

By Katherine Masters

NEW YORK, Sept 27 (Reuters) - When Nike reports its results for the key back-to-school shopping season on Thursday, investors will be eyeing the performance of its Jordan brand, a major profit-driver for the company.

Data from analytics firm Altan Insights shows the value of some Jordan shoes has been slipping on the resale market as other sneaker brands, including On Running, experience meteoric growth. On the resale platform StockX, the average premium paid on new releases of Nike's Air Jordan 1 Retro High, long considered a quintessential collector's shoe, has slipped from a high of 61% in 2020 to 4% in 2023.

In other words, sneaker styles that once sold on StockX for $100 or more above Nike's list price are now selling for a premium of less than $10 -- or at a discount, in the case of the "True Blue," "Skyline" and "White Cement" colors of Air Jordan high-tops released this year. Some investors are concerned the Jordan brand, a major source of sales for Nike, may be "losing steam," Bernstein analysts said on Sunday.

Nike did not immediately respond to a request for comment.

CEO John Donahoe told investors in June that Jordan was "well on its way to becoming the second largest footwear brand in North America," with growth of more than 30% in fiscal 2023.

The company does not report what percent of its total revenues come from the Jordan brand. But within wholesale, Jordan accounts for roughly 16% of Nike's revenues, according to its fiscal 2023 annual report - up 29% compared to the previous year.

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