(Source: www.businessinsider.sg)

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Nike basketball shoes are poised to blow up as
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Facebook/Jordan

Trends are shifting, and it’s good news for Nike.

Signs point to a rebirth of denim, and it’s only a matter of time before jeans become the bottom du jour again, according to a new research note by UBS.

As the dominant athleisure trend “moves past its peak” UBS says “a strong denim cycle has begun,” citing product experts and fashion magazines.

That’s great for brands that specialize in denim, like Levi’s, but what does it have to do with Nike?

It turns out that, according to UBS, historically when denim is popular, basketball shoes are tend to be popular as well.

Basketball is a huge category for Nike, and it’s the undisputed leader in basketball footwear worldwide.

The Jordan Brand is almost completely dedicated to basketball, though it’s recently been making inroads in football to hedge against downturns and its current oversupply problems. Nike basketball and Jordan combined sold $4.3 billion worth of product last quarter in wholesale alone.

Basketball has struggled recently, as current trends aren’t favorable to its high-top designs. They don’t fit with the slim athleisure styles that are now so dominant.

A resurgence, which would be a reversal of trends going on two years, would also be beneficial to Under Armour, which has a shoe business centered on basketball and star Steph Curry, as well as Adidas which sees an opportunity in the space.

Only time will tell how the big three shake out in terms of market share.

More Info: www.businessinsider.sg

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