TALLADEGA, ALABAMA – APRIL 21: Michael Jordan, NBA Hall of Famer and co-owner of 23XI Racing reacts after Tyler Reddick, driver of the #45 Jordan Brand Toyota, wins the NASCAR Cup Series GEICO 500 at Talladega Superspeedway on April 21, 2024 in Talladega, Alabama. (Photo by James Gilbert/Getty Images)
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On the heels of an earnings call suggesting that CEO Elliott Hill’s turnaround efforts are beginning to bear fruit, Nike announced its next bold move: launching its first U.S. “World of Flight” flagship store dedicated to the Jordan Brand. Opening October 10 at 1617 Walnut Street in Philadelphia’s historic district, the store joins a lineup that includes World of Flight flagship stores in Milan, Tokyo, Seoul, Beijing, and Mexico City.
With plans to expand the Jordan Brand retail experience to other major cities across the country, Philadelphia was selected for its first U.S. opening because of its rich sports culture and ties to Michael Jordan, who played his last NBA game there in 2003, as well as Jalen Hurts, the Eagles star quarterback and Jordan Brand ambassador.
“We are going to further unite the energy of Philadelphia with MJ’s greatness,” said Jeremy Bolds, Jordan Brand North America GM, in a statement. Calling the city one of the largest basketball-demand markets in the country, he said the store will deepen connections with the community through special events and brand experiences, “high-heat” product drops, and the widest assortment of Jordan Brand footwear and apparel available anywhere.
The City of Brotherly Love will roll out the red carpet for the opening with the Jordan Brand hosting a community block party beginning at 4 p.m. on opening day. Promising “exclusive surprises” for attendees, Hurts said, “It is amazing that Jordan Brand chose Philadelphia for its first World of Flight store in the U.S. – it is a city that has shown me so much love and deserves the best.”
He added, “Jordan Brand has done so much work supporting youth and organizations in the Philadelphia community over the last 10 years,” noting that Philadelphia is where the Jordan Wings Scholars Program got started, granting college scholarships to disadvantaged youth.
Turnaround Begins
Nike Inc. beat analysts’ expectations in its first quarter 2026, ending August 31, with revenues up 1% to $11.7 billion and the Nike Brand up 2% to $11.4 billion. Further signs of progress in Hill’s “Win Now” turnaround strategy were a 4% increase in North America sales to $5 billion and wholesale revenues up 7% to $6.8 billion.
However, results were mixed with the Converse brand down 27% to $366 million and Nike Direct revenues off 4% to $4.5 billion, including a 12% decline in Nike Brand digital and a 1% decrease in Nike-owned retail stores. In addition, gross profit declined by 6%, with gross margins dropping from 45.4% to 42.2%, and net income decreased by 31% to $727 million.
Internationally, the Europe, Middle East, and Africa region rose 6% on a reported basis – 1% in constant currency – to $3.3 billion, but Greater China dropped 9% to $1.5 billion, with a notable 11% decline in footwear sales.
CFO Matthew Friend said that the company’s progress “will not be linear as dimensions of our business recover on different timelines.” Besides the geographical differences, the company is also realigning its business around sports, rather than its current women’s, men’s, and kids’ lifestyle segmentation.
Under what it calls its “Sports Offense,” Hill stated, “This new formation and ways of working will align our three brands – Nike, Nike Jordan and Converse – into more nimble-focused teams by sport. Collectively, we’ll have a better coordinated attack with each brand forming a distinct identity. In the marketplace, organizing by sport gives us a much clearer point of view.”
Jordan Brand Ready To Reboot
The opening of the Jordan Brand World of Flight store is part of the planned attack to rejuvenate the brand. Last year, Jordan Brand revenues were down 16%, dropping from $8.7 billion to $7.2 billion. In its latest reporting, Jordan Brand is no longer separately called out but folded into Nike Brand revenues.
Landing in the U.S. with a Jordan Brand World of Flight store promises to reignite passion for the brand following the company’s new sports-focused strategy. Hill pointed to the refreshed “House of Innovation” store in New York, now arranged by sport, as a proof point that the strategy works.
“I walked the floors in early September and we’re now able to take a consumer into a World of Jordan, a World of Nike Running and a World of Nike Global Football,” he said. “It’s an immersive sport experience and the refresh has already led to double-digit revenue increases.”
He added that a similar sports arrangement in a smaller Nike store in Austin produced identical results.
Momentum Building
Reporting the company’s most recent results show the start of its turnaround efforts after a string of declining quarters, GlobalData’s lead apparel analyst Louis Deglise-Favre said Nike Brand footwear division remains the “most challenging” with reported revenues down 1%, though that is a great improvement over fourth quarter 2025 performance when footwear sales fell 13%.
The Jordan Brand is synonymous with footwear, and Hill reported positive results this quarter in North America, following double-digit growth in basketball and running categories. Shining the spotlight on Jordan Brand in Philadelphia will only increase the momentum.
Additionally, the recently launched NikeSKIMS brand is another positive sign, as Hill said the early consumer response was very strong. Research firm Consumer Edge confirmed those results.
After the 58-piece NikeSKIMS collection rolled out in Nike stores and online, as well as on the SKIMS website and stores, SKIMS’ direct-to-consumer sales more than doubled in the two days following the product launch and generated in excess of 60% new customers and a 30% uptick in average ticket sales.
Despite early signs of improvement, Nike CFO Friend warned that the company faces greater headwinds in the coming second quarter than it did during the first quarter. The company is guiding on revenues falling in the low-single digits from September through November this year.
“While we’re getting wins under our belt, we still have work ahead to get all sports, geographies and channels on a similar path as we manage a dynamic operating environment,” Hill stated, as he reassured investors, “I’m confident that we have the right focus in Win Now and that our new alignment in the Sports Offense will be the key to maximizing Nike Inc.’s complete portfolio over the long term.”
Now that the Jordan Brand is stepping back into the spotlight with the opening of the World of Flight store in Philadelphia, Nike is at a tipping point in reigniting consumer passion and recalibrating its playbook around sport, experience and culture.
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