Nike shares reached an all-time high Thursday after the sportswear company was blasted last week by President Donald Trump and protesters upset with its envelope-pushing ad campaign featuring athlete Colin Kaepernick.
The sporting goods giant, a member of the blue-chip Dow index, finished at $83.47 on Thursday, its highest-ever closing price, prompting applause on Twitter from basketball star and self-professed ‘#NikeLifer’ LeBron James.
‘Well I mean WE’RE on [fire],’ James wrote before adding a series of fire emojis.
The new record came 10 days after Nike unveiled a sweeping new ‘Just Do It’ marketing blitz featuring Kaepernick, 30, who has been effectively blacklisted from the National Football League after protesting racism in law enforcement.
Shares of the Oregon-based Nike Inc plummeted 3 per cent to $79.71 last week after they went public with their decision to publicly back the former NFL quarterback.
The stock value increased to $83.51 in midday trading Friday.
Nike unveiled it’s new campaign centered around Colin Kaepernick, who has been effectively blacklisted from the National Football League after protesting racism in law enforcement
Nike stock prices reached an all-time high Thursday, closing at $83.47. It reached $83.51 midday Friday
LeBron James, who has a lifetime contract with Nike, overwhelmingly approved the latest stock numbers posted by the footwear giant Thursday
The Kaepernick campaign prompted some consumers to take to social media to destroy their Nike gear and provoked criticism from US President Donald Trump, among others.
But many marketers have described the ads as a savvy bet on higher sales from millennials and non-white consumers, an idea that has been supported by some data since the Kaepernick spots were unveiled.
Online sales for Nike rose 31 per cent from the Sunday to Tuesday over the Labor Day holiday weekend period that included the Kaepernick ad, which quickly went viral after being teased on social media on the night of Monday September 3.
Nike faced backlash over its deal with Kaepernick. The NFL star sparked controversy when he started kneeling during the national anthem in protest
‘Just like the NFL, whose ratings have gone WAY DOWN, Nike is getting absolutely killed with anger and boycotts,’ Trump said on Twitter on Wednesday. ‘I wonder if they had any idea that it would be this way? As far as the NFL is concerned, I just find it hard to watch, and always will, until they stand for the FLAG!’
Online sales for Nike rose 31 percent from the Sunday to Tuesday over the Labor Day holiday weekend period that included the Kaepernick ad
That is better than the 17 per cent rise over the same period in 2017, according to data from Edison Trends.
Over the course of the six days ending September 9, Nike’s online sales dipped nine percent, but that was smaller than the 32 percent fall experienced over the same stretch in 2017.
‘There was speculation that the Nike/Kaepernick campaign would lead to a drop in sales but the data does not support that theory,’ Edison Trends said through a spokesman.
The Edison data showed a rise in Nike online sales in some more politically progressive states, such as Maryland and New Jersey, while Nike sales fell sharply in some of the more conservative states, including Idaho and Wyoming.