Nike stock chart forms a 'Jumpman' after shares plunge - why is NKE down and the story behind Michael Jordan’s iconic logo

Nike’s stock chart has done something the company probably did not have in mind when it created the Jumpman. After another sharp drop in Nike shares, the shape of the stock chart caught the attention of Workweek's business writer Trung Phan, who joked on social media X that “Nike fumbled so bad that its stock chart created the Jumpman formation.”

The reference is to Jumpman, which is the silhouette of Michael Jordan that has become synonymous with Nike’s Jordan Brand. And while the chart comparison is a joke, it comes at a serious time for Nike, which is trying to turn around a business facing weaker sales, continued problems in China and pressure on some of its biggest brands.

Why Nike stock is falling

Nike’s latest earnings report did little to ease concerns about the company’s turnaround. For the first quarter of fiscal 2027, Nike reported revenue of $11.2 billion, down 4% from $11.7 billion a year earlier. Net income fell 2% to $712 million, while diluted earnings per share came in at 48 cents. Nike’s gross margin improved to 42.8% from 42.4% a year earlier.


The bigger concern was Nike’s outlook. The company expects fiscal 2027 revenue to decline by a high-single-digit percentage. That forecast came as Nike continues to work through weak demand in some markets and tries to get its product strategy back on track.

Nike shares fell sharply after the results, with the stock dropping about 8% in early trading on October 2. The shares were around their lowest level in 12 years and remained well below their 2021 peak of about $175, as per the Reuters report.

That is the backdrop behind Phan’s “Jumpman formation” joke.

Nike’s China problem is getting harder to ignore

One of Nike’s biggest problems remains Greater China. Nike’s Greater China revenue dropped 22% on a reported basis and 26% on a currency-neutral basis in the latest quarter. Reuters reported that sales in the region have now declined for nine consecutive quarters. Nike’s results show Greater China revenue falling to $1.18 billion from $1.51 billion a year earlier. The decline was seen across both Nike’s wholesale and direct businesses.

The company is also changing its approach to the Chinese market. Nike plans to remove online sales rights from some of its largest retail partners in China beginning in January as it looks for greater control over pricing and distribution. That change is expected to hurt revenue and profitability in the short term.

Jordan Brand is part of the turnaround too

There is another reason the Jumpman reference fits the story. Nike is also trying to fix parts of its Jordan business.

Jordan Brand has been one of Nike’s most recognizable franchises for decades, but the company has acknowledged that it needs to make changes. CEO Elliott Hill has said Nike is working to improve Sportswear, Jordan Brand and Greater China.

One of the changes involves the way Nike releases Jordan products. Reuters reported that Hill said Nike had been putting too many retro products into the market. The company is now reducing the number and frequency of those releases.

Nike is preparing for more job cuts

Nike is also restructuring its operations. The company’s new Pace program is designed to simplify its organization, change parts of its global supply chain and reorganize its geographic structure.

Nike expects the program to produce about $2.5 billion in cumulative savings through fiscal 2031. It also expects to take roughly $1 billion in pretax charges connected with the restructuring, mainly related to employee costs.

The company has not yet determined exactly how many jobs will be cut, but as per reports, employees are expected to begin receiving notifications in 2027.

How the Jumpman logo was created

The story behind the Jumpman goes back to Michael Jordan’s early relationship with Nike, Jordan signed with Nike in 1984, during his rookie season. The first Air Jordan shoe arrived in 1985 and became the beginning of a partnership that would eventually grow into one of the biggest names in sportswear.

But the Jumpman did not appear on that first Air Jordan. The silhouette became part of the Jordan line with the Air Jordan 3, released in 1988. Designer Tinker Hatfield was brought into the project as Nike worked on the next generation of Jordan shoes, as per Smithsonian Magazine.

The logo was based on an image of Jordan in a leaping pose. That silhouette eventually became the Jumpman that fans now associate with Jordan Brand.

Nike’s own history of the Air Jordan 3 describes the shoe as the point at which the Jumpman became part of the Jordan identity.