Nike Inc | $NKE Stock | Shares Suffer Worst Day in Five Months

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Nike Inc (NYSE: NKE)

 

Nike was the worst-performing Dow component on Tuesday, after going down 2.49%, or $3.03 to trade at $79.71 in the morning hours of regular trading.

Nike stock chart

The drop came after the company revealed that it would feature former San Francisco 49er quarterback Colin Kaepernick as the new face of its “Just Do It” advertising campaign.

Kaepernick, 30, shared a photo of the campaign on his Twitter account on Monday, which Nike retweeted on its corporate Twitter account.

The star, 30, first hit headlines two years ago when he led player protests against police brutality and racial discrimination by kneeling during the playing of the national anthem.

Nike’s move triggered criticism on social media, with a section of its customers calling out on the company for its partnership with the player. Some used the hashtags #JustBurnIt and #NikeBoycott to express their anger over the company’s involvement with the player.

The hashtags were among the most trending topics on Twitter early Tuesday, with more than 30,000 people using it. Some vowed to destroy all the products that they had bought from the company.

Others even went on to post images of themselves ripping and burning their Nike-branded apparel and shoes. However, a number of social media users and athletes such as Serena Williams, LeBron James, Chris Paul and Kevin Durant were in support of the Kaepernick and Nike, posting images of the ad on their personal Instagram accounts.

The Beaverton, Oregon-based U.S. brand has been sponsoring Kaepernick since 2011 but he has reportedly signed a new deal that will include a signature apparel and shoe. President Trump has time and again criticized players who kneel during the national anthem, saying that he would be pleased to see them get fired by NFL owners.

Some industry analysts say that Nike’s move could win over some customers, but end up alienating others. Others believe that a boycott is not likely to have a significant impact on the company’s forecast growth outlook and sales in its North America segment for fiscal 2019.  

Nike Inc Company Profile

Nike, Inc. is engaged in the design, development, marketing, and sale of athletic footwear, apparel, accessories, equipment, and services. It operates through the following segments: North America; Europe, Middle East & Africa; Greater China; and Asia Pacific & Latin America; Global Brand Divisions; Converse; and Corporate.

The North America; Europe, Middle East & Africa; Greater China; and Asia Pacific & Latin America segments refers to the design, development, marketing, and selling of athletic footwear, apparel, and equipment. The Global Brand Divisions represents NIKE Brand licensing businesses.

The Converse segment designs, markets, licenses, and sells casual sneakers, apparel, and accessories. The Corporate segment consists of unallocated general and administrative expenses. The company was founded by William Jay Bowerman and Philip H. Knight in 1964 and is headquartered in Beaverton, Oregon. –FinanceYahoo

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