The publicity and controversy around the Nike’s endorsement deal with Colin Kaepernick is reaping rich benefits for the US sports brand Nike.
Nike’s market value has touched $6 billion following the controversial “Just Do It” campaign featuring NFL star Colin Kaepernick was rolled out this month.
Nike’s stock prices, which took an initial 3.9% plunge shortly after Kaepernick had shared the campaign on Twitter, have now spiked up to 36% for the fiscal, making the American sportswear giant the top performer on the Dow’s index of 30 blue-chip stocks.
Nike shares reached an all-time high at $85.67, adding nearly $6 billion to the company’s market value. This comes close on the heels after a research by Thomson Reuters last week revealed that Nike sold 61% more merchandise since the controversial ad campaign featuring the former San Francisco 49ers quarterback came out this month.
Nike, according to a study, sold out far more items between September 3 and 13 than in the 10-day period before the campaign was rolled out. The company discounted fewer products during the same period and saw its Colin Kaepernick women’s jersey sell out on September 17.
Nike entered the eye of the storm, receiving massive outrage and criticism after the extended its deal with Kaepernick, which had sparked a national controversy. Kaepernick had become a subject of intense, heated debates after he started kneeling during the national anthem before the start of the game to protest against racial injustice and police atrocities.
Nike entered the eye of the storm, receiving massive outrage and criticism after it launched the new ‘Just Do It’ campaign to announce the contract extension with the controversial NFL free agent. The 30-year-old first tweeted the ad, captioned as “Believe in something, Even if it means sacrificing everything,” on the Labor Day weekend, ahead of Nike’s announcement.
The Kaepernick Nike campaign immediately invoked mixed response with some calling for a boycott of the Nike products form the masses with some posting videos of themselves on social media burning Nike products.
US President Donald Trump, who has always taken a bitter stand against NFL players kneeling during the national anthem, heavily criticised the company while declaring them as unpatriotic.
Now, the sportswear giant seems to be basking in the unforeseen commercial glory which is in contrast with Trump’s claim that Nike would get “killed” by its decision to sign an endorsement deal with Kaepernick.
Amid receiving mixed reactions, Nike netted media mileage worth $43 million within 24 hours of sharing the campaign on twitter with a 31% surge in online sales. The stock price, after suffering a sharp 3.9 per cent plummet initially, climbed up nearly 7 per cent a week later.
The gains in the first 24 hours, according to Bloomberg, included $10.91 million in negative buzz, which also included a sharp criticism by Trump; $19.01 million in positivity created by the campaign and $13.76 million in the neutral news coverage.
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