Nike's Jordan Pullback Threatens Foot Locker With $550 Million Sales Hit

Nike's decision to scale back retro Jordan launches to correct an oversupply is set to deepen troubles at Foot Locker, which derives roughly 25% of revenue from the brand, analysts said Monday. Jordan revenue fell in the mid-teens in Nike's latest quarter, and CEO Elliott Hill said the company would reduce retro releases, adding that Nike has discussed the plan with wholesale partners. BNP Paribas analyst Laurent Vasilescu estimates Foot Locker, Jordan's largest wholesale partner at about $1.85 billion in sales, faces a roughly $550 million sales hit starting in spring 2027 absent replacement volume. BMO's Kelly Crago expects the pullback to dent Foot Locker comps by 250 to 550 basis points in fiscal 2027 and said parent Dick's Sporting Goods may need to rethink Foot Locker's cost structure, possibly exiting Europe, selling WSS or closing Champs. Foot Locker comps fell 3.6% in the second quarter, and Dick's, which bought the chain for $2.4 billion last year, cut its full-year outlook in August.