Michael Jordan's brand makes up greater than 11% of Nike's overall business. Yahoo Finance's Brian Sozzi shares how Nike contnues to rake in billions of dollars off of the Jordan brand.

Video Transcript

- All right, Nike earnings were out last Thursday after the bell and they are still top of mind for Brian Sozzi in sales. I know you spent the weekend thinking about your sneaker collection, which as far as I know does not include any Jordan brand sneakers yet. But as you note, the company or the brand with inside Nike's portfolio is essentially the same size as Under Armour and continues to just be a major growth driver sales of 31% over last year.

BRIAN SOZZI: Yeah, I spent the weekend practicing a little golf. My new Nike Golf sneakers but those are to your point, Myles, not Jordan's. I'm very much-- not necessarily a sneaker head like you or our very own Senior Fed Correspondent Brian Cheung. Nonetheless, I'm still pretty amazed by the strength in the Jordan brand from the company's most recent quarter reported late last week.

Annual sales and Nike just casually slip this in on the earnings call the top $5 billion for the latest 12 months, that was up 31% year over year. Really just mind blowing gains for brand has been around for as long as, I think, I've been on this planet. Some of the main sponsored athletes here for the Nike brand right now are Zion Williamson, Jayson Tatum, Asia Durr from an NBA sponsored athlete perspective.

Some of the top sneakers and Nike called out on the earnings call at least for right now that is driving the results-- the Air Jordan 1, the Air Jordan 11. These are retro releases in many respects of shoes that were popular back when I was in high school and in middle school, you know, many years ago. Also Zion Williamson's first sneaker also dropped in the most recent quarter, that also saw some very strong demand.

And a fun fact here, sales of Jordan products for women tripled in the most recent quarter. They have some really awesome stuff, you go to Nike women's that portion of the website and it's this trendy for looking stuff that sells at a significant premium. So I am not surprised to see sales more than triple their for Nike women's business. And I'm still looking at Nike stock to this day, the stock closed Friday's session at a record high came out of the gate very strong finish session up about 15% as it should. I mean the quarter was absolutely phenomenal.

But I'm looking at some fun facts here from Yahoo Finance Plus. The Jordan brand alone, that brand alone is the entire size of one Under Armour. Under Armour-- for this current fiscal year is only expected to have about $5.3 billion in sales. It's amazing that one single brand inside of a Nike is worth more or puts on more in sales than the entire company that is Under Armour. Also Nike stock as I mentioned it hasn't been this high well ever before. And then lastly, a 33 times for PE ratio.

Nike stock trades pretty big discounts to Adidas and Lululemon more than 10% discount as compared to Adidas and Lululemon. Which is interesting, considering just the strength of Nike's past six months. And I know Adidas and Lululemon have growing very strongly but the core that Nike just put up here really raises the question on why that discount in fact exists?

And last but not least, here my hot take is this-- here comes a big fall and winter season for Nike, back to school holiday probably pretty big seasons for the company here. Analysts' estimates need to come up probably significantly further, they haven't been raised that far in the two days since the earnings end reported. Overall Myles, I took the Nike. It's amazing how they can continue to come up with this innovation literally, every single day.