Nike's Jordan Expansion May Risk Long-Term Brand Equity, UBS Says

11:42 AM EDT, 09/09/2026 (MT Newswires) -- Nike's (NKE) aggressive expansion of its Jordan brand across broader retail channels could support near-term sales but risks weakening the brand's long-term equity, UBS Securities said in a Wednesday note. UBS said Jordan footwear SKUs at Famous Footwear rose to about 143 for the 2026 Back-to-School season from 88 last year, up 63%, with 39% of the assortment appearing new and 25% of products on promotion. The analysts said broader distribution and increased discounting could weaken Jordan's scarcity, exclusivity and pricing power, while weak Foot Locker and JD Sports sales and a 2.8% year-over-year decline in July resale prices point to softer demand. Nike may be favoring near-term revenue growth over Jordan's long-term brand strength, raising questions about its premium positioning as distribution expands, the note added. UBS maintained its neutral rating on the stock with a price target of $48. Nike shares were down more than 2% in Wednesday trading. Price: 37.11, Change: -1.00, Percent Change: -2.61