Nike’s stock surged on Wall Street, and in Tel Aviv—Retailors was rising. The connection between the two isn’t new, and it’s expected to continue shaping Retailors’ trajectory. Nike accounted for 68% of Retailors’ revenue in the first nine months of 2024, and Retailors is one of Nike’s largest franchisees worldwide. Beyond its stores in Israel, the company operates Nike stores in Canada, Australia, New Zealand, and various European countries—and has recently expanded into France.

In many ways, Retailors is Nike. While the company holds franchise rights for additional brands like Foot Locker, Champion, and Converse, Nike is its dominant business—both financially and in terms of brand perception. That means when Nike soars, Retailors benefits, and when Nike stumbles, Retailors takes a hit.

Nike’s Decline and Recovery

Nike’s stock had a rough year. Under its former CEO, John Donahoe, the company prioritized online sales at the expense of physical retail. The strategy worked well during COVID, but as consumers returned to malls, Nike lost shelf space to emerging brands like On and Hoka.

The major downturn came in June, when Nike issued a weak revenue forecast for the upcoming year. The stock plunged 20% in a single day, dragging Retailors down with it, causing a 10% drop on the Tel Aviv exchange.

Now, Nike is under new-old leadership. Elliott Hill, who spent 32 years at the company before retiring in 2020, has been called back as CEO. The expectation is that Hill will refocus on physical retail, a strategy that could restore investor confidence and lift Nike’s stock, which is currently trading at its pandemic-era price levels.

Nike’s Impact on Retailors

Retailors is directly impacted by Nike’s performance, but its success depends not only on Nike’s brand strength but also on its ability to expand Nike’s footprint. In 2024, Retailors is expected to generate approximately 2.3 billion ILS in revenue, with an operating profit of 190 million ILS, translating to an 8% margin.

Expanding into France could push its annual revenue past 3 billion ILS, potentially raising operating profit to 240 million ILS and net profit to 300 million ILS next year.

Of course, risks remain—Nike is still facing challenges, same-store sales growth isn’t guaranteed, and entering new markets is never easy. But when the opportunity arises to deepen ties with a global powerhouse like Nike, Retailors isn’t about to pass it up.