Michael Jordan Still Dominates Basketball 13 Years After Retirement

In a new report, analyst Kate McShane breaks down the results of Citi Research’s annual U.S. basketball footwear survey. McShane identifies the top trends in basketball footwear and which stocks are Citi’s top footwear picks.

According to the report, Michael Jordan and Nike Inc (NYSE: NKE) continue to dominate the space 13 years after the superstar’s retirement.

“Our survey results indicate slightly more cautious outlook on the basketball category among independents following several years of robust comps, but the fundamentals driving the business (led by new technology/fashion, a strong Nike pipeline, popularity of the NBA) remain intact, with the category likely remaining stable for the next 12-18 months,” McShane explained.

Related Link: Michael Jordan: The $1 Billion Man

She adds that the number of retailers expecting flat-to-positive basketball footwear sales growth in 2016 is consistent with 2015’s numbers, but specialty and larger stores are demonstrating the most strength.

One uncertainty this year will be the impact of a 21-day delay in tax refund checks this year compared to 2015. McShane said this delay could weigh on the February sales period.

McShane describes retailers as “modestly upbeat” when it comes to back-to-school sales, with 49 percent expecting orders to be flat year-over-year.

Citi’s top Buy-rated stock picks in the space include Nike, Under Armour Inc (NYSE: UA) and Foot Locker, Inc. (NYSE: FL).

Disclosure: the author holds no position in the stocks mentioned.