Nike shares have bounced back after suffering a massive drop in value following the announcement of an advertising campaign featuring NFL protester Colin Kaepernick.
Shares plummeted 3 per cent to $79.71 at the start of the trading day on Tuesday last week and finished the session at $76.60 after Kaepernick posted a black-and-white close-up of himself on Instagram.
But on Tuesday this week the apparel giant’s shares rose about half a percentage point to close at $82.63.
Kaepernick, the first NFL player to kneel during the national anthem as a protest against racism, will be one of several faces for a campaign marking the 30th anniversary of Nike’s famous slogan.
Nike announced on Sunday that its online sales have already increased 31 per cent in the wake of the campaign.
The sportswear company’s sales surged 31 per cent compared to last year over the Labor Day weekend, according to digital commerce research company Edison Trends.
Sales in particular increased on Monday and Tuesday after Nike debuted its new 30th anniversary campaign and aired a new ad featuring the former San Francisco 49ers quarterback.
‘There was speculation that Nike’s Colin Kaepernick ad campaign could lead to a drop in sales… At this point, does not seem to support that theory,’ Edison Trends said.
‘In fact, Nike sales grew 31 per cent from Sunday through Tuesday over Labor Day this year, besting 2017’s comparative 17 per cent increase.’
Nike is just the latest sports brand to face boycott calls, which industry analysts said can alienate some customers, while winning over others, but often blow over quickly.
‘Nike is not a stranger for backing sporting personalities who take views and act on them. Politicizing sport is likely to result in polarizing demographics,’ said John Guy, an analyst at Mainfirst Bank in London.
‘Freedom of speech is one of America´s core tenants, so placing this freedom within sporting context for a brand as big as Nike will always make headlines,’ he added.
Some analysts said the boycott would not have a big impact on Nike, which in June reported a major sales rebound in its North America business and forecast strong growth for 2019.