Nike Inc. (NYSE:NKE) stock was up 1.77% in early afternoon trading on September 10. Shares are down 1.18% month-over-month as Nike received backlash following the launch of a controversial ad campaign.
The campaign centered around quarterback Colin Kaepernick, who began to kneel for the national anthem at NFL games in 2016. This style of protest has caught fire among fellow players and has highlighted political rifts in fans and owners alike.
Nike sales appeared to bolster the reasoning behind the move over the U.S. bank holiday weekend. According to Edison Trends, online sales grew by 31% over the holiday. The results may confound some critics who condemned the company for seemingly "picking sides" as the cultural and political warfare in the U.S. drags on.
Nike is set to release its fiscal 2019 first-quarter results later this month. In the fourth quarter of fiscal 2018 Nike saw a return to growth in its North American business. Revenue rose 13% year-over-year to $9.8 billion and net income rose 13% to $1.1 billion.
For the full-year revenues climbed 4% on a currency-neutral basis to $36.4 billion. Growth was largely driven by momentum in international markets.
The bold ad campaign may be a further attempt to reinvigorate growth in North American markets. Judging by the early response it may pay off, at least in the short term.
For investors, Nike will represent another test case for corporations looking to navigate an increasingly polarized political environment in North America and across the developed world.
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