For the First Time in a Long Time — Nike's Sales are Down

For decades, Nike has been the top athletic footwear and apparel supplier.Photo by(The author)

The king of selling sneakers is uncharacteristically in a "profits slump"

In mythology, the Greek goddess named "Nike" represented victory. And for decades now when it comes to selling sneakers, Nike has only tasted victory.

Surprising to many for the first quarter, Nike's sales and profits are considerably down.

As for why shoppers' demand for the latest, hip sneakers is down, some analysts point to Nike's failure to have found Michael Jordan a worthy heir to the "sneaker throne."

Indeed, if Nike was a Greek goddess, well, when it comes to selling shoes — Jordan is the "sneaker god." Yet despite retiring from basketball over 20 years ago, Jordan's sneakers still account for almost 20% of Nike's annual revenue.

Simply put, Jordans still being Nike's top seller is like the iPhone 4 still being Apple's top seller.

“Nike has done itself no favors with a lack of focus and oomph in a market where far more effort and exertion is needed to hold onto sales,” said Neil Saunders, managing director at GlobalData Retail.