Nike Cuts Jordan Retro Releases After Brand Revenue Falls at a Double-Digit Rate
Key Facts
Nike plans to cut the volume and frequency of select Jordan Retro releases after acknowledging it had overexposed its iconic products, CEO Elliott Hill said during the fiscal 2027 first-quarter earnings call on October 1, 2026. The move is part of a brand repositioning to restore scarcity and rebalance the market. Hill said the company will take an approach similar to what it did with Air Jordan 1. The plan’s effects will be concentrated in North America in the near term, Hill said. He added that the rebalancing aims to establish “more profitable and sustainable” growth.
The plan reflects pressure on Jordan Brand, which accounted for 13% of Nike’s global business in the first quarter, while its revenue fell at a double-digit rate. CFO Dave Denton said Nike Sportswear and Jordan Brand together weighed on the company’s consolidated results by a high-single-digit amount during the quarter. Nike said pressures in some categories for the two brands were linked to higher markdown levels and broader market pressure. Hill said the company is repositioning Jordan to restore scarcity in Retro products while expanding the brand’s presence across sports. He pointed to growth in court footwear, golf and training, as it seeks to broaden the brand beyond select classic releases.
At the company level, Nike reported first-quarter revenue of 11.2 billion dollars, down 4% on a reported basis and 5% excluding currency effects from a year earlier, while diluted earnings per share were 0.48 dollars. Nike Direct revenue fell to 4.1 billion dollars, down 8% on a reported basis and 9% excluding currency. The decline included a 13% drop in digital sales and a 5% fall in sales at company-owned stores. Gross margin, by contrast, rose 60 basis points to 42.8%. The company said gains from supply-chain cost management and currency movements were partly offset by higher discounts and channel mix.
Regional pressures are particularly clear in Greater China, where revenue fell 26% in the first quarter, Hill said. He said reorganizing the digital marketplace could take several seasons, putting Nike’s challenges in China in the broader context of a reshaping of sales channels and product mix. In its quarterly report, the company said reducing supply and repositioning digital and wholesale channels are part of efforts to rebalance its footwear mix. It also said further measures involving Nike Sportswear and Jordan Brand are expected after fiscal 2027. The steps come as Nike seeks to improve revenue quality and increase full-price sales, management said on the earnings call.
Nike forecast fiscal 2027 revenue would fall by a high-single-digit percentage, compared with analysts’ average forecast for a decline of about 2%, Reuters reported. Reuters also reported that the stock fell 8.5% in extended trading after the results were announced on October 1. Nike said supply-reduction measures will weigh on reported revenue for the rest of fiscal 2027, with effects extending into fiscal 2028. In the second quarter, the company expects the comparison with promotional activity in Europe during Cyber Week and higher comparable wholesale sales in North America to weigh negatively on revenue by about 400 basis points. Nike also expects its Pace program to generate cumulative savings of about 2.5 billion dollars through fiscal 2031.
Nike is scheduled to present the next phase of its growth strategy and related financial plan at its investor conference on November 16 and 17, 2026. Denton said the company will provide further details at the conference on its strategic priorities, investment approach and long-term financial targets. Expected steps include continued repositioning of Nike Sportswear and Jordan Brand after fiscal 2027, according to the company’s quarterly report. Management links these measures to rebalancing the footwear mix and improving revenue quality. The company says the impact of cutting select Retro releases will appear in reported revenue during the rest of the current fiscal year and extend into the following year.