Open 24/7/365

We Have A Life-Time Warranty /
Guarantee On All Products. (Includes Parts And Labor)

Nike Says The Colin Kaepernick ‘Just Do It’ Campaign Is Driving Traffic And Engagement (#GotBitcoin?)

Nike Inc. took a risk by casting Colin Kaepernick in its latest “Just Do It” ad, and the company says it’s paying off. Nike Says The Colin Kaepernick ‘Just Do It’ Campaign Is Driving Traffic And Engagement

On the fiscal first-quarter earnings call late Tuesday, Nike Chief Executive Mark Parker said the ad, which also includes tennis champ Serena Williams and skateboarder Lacey Baker, is inspiring people across the globe.

“Like… many campaigns, it’s driving a real uptick, I think, in traffic and engagement, both socially as well as commercially,” Parker said, according to a FactSet transcript.

“We’ve seen record engagement with the brand as part of the campaign. And our brand strength, as you well know, is a key dimension that contributes to the ongoing momentum that we’re building across the Nike portfolio.”

Nike’s decision to feature the former NFL quarterback in the latest ad was met with a stock price dip and backlash, including calls for a boycott. But the company quickly rebounded, with shares turning up and online sales jumping 31% from Sunday of Labor Day weekend to the following Tuesday.

Nike’s Kaepernick Ad Provides Long-Term Gain After Near-term Pain

“We feel actually very good and very proud of the work that we’re doing with Just Do It, introducing Just Do It to the new generation of consumers on the 30th anniversary of the campaign,” Parker said. “We know it’s resonated actually quite strongly with consumers obviously here in North America, but also around the world.”

The company also reported better-than-expected quarterly results. Earnings per share were 67 cents, beating the 63-cents-per-share FactSet consensus, and sales totaled $9.95 billion, ahead of the $9.93 billion FactSet guidance.

Parker highlighted double-digit revenue growth internationally and 6% growth in North America, a region that had been challenged.

Even before the earnings release, Nike was upgraded at Canaccord Genuity based on innovation, improved customer experience, and more controlled distribution of the company’s iconic Jordan brand.

After the results, analysts were largely bullish, focusing on details like the pipeline for new merchandise, which includes the Air Max 720 that Parker said has been engineered for “maximum comfort,” the opportunities in certain categories, like women’s, and growth in digital.

“While improvement in the footwear business continues to be the focus for many investors (+10% in 1Q19), Nike’s apparel business is quietly posting impressive results,” wrote Susquehanna Financial Group in a note. Analysts there rate Nike shares positive with a $100 price target.

Still, shares closed down 1.3% on Wednesday. Analysts suggest a few reasons, among them: share price acceleration over the past year, with the stock up 56% for the last 12 months, outpacing the Dow Jones Industrial Average DJIA, -0.40% (up 18.4%), for the period); conservative guidance versus elevated expectations; and challenges in North American fundamentals near term.

“[W]e believe the industry shift from performance to lifestyle has reduced barriers to entry (larger fashion/pop culture/price element vs. innovation in the past) and elevated competition in the athletic space,” adds J.P. Morgan analysts. They estimate the luxury sneaker market at about $3 billion, for example.

Parker talked about Nike’s “ability to create unique intersections between sport and style,” with Serena Williams wearing gear that was designed through a collaboration with Virgil Abloh, the designer behind brands like Off-White and the artistic director of Louis Vuitton’s menswear.

“QUEEN”@Nike @nikewomen @Nikecourt @virgilabloh

— Serena Williams (@serenawilliams) August 13, 2018

“As I’ve said before, it’s not lifestyle versus performance or fashion versus sport,” said Parker on the call. “The consumer continues to be inspired by seeing those worlds come together.”

Analysts were largely bullish, with Baird raising its price target to $94 from $90 and maintaining its outperform rating.

“More broadly Nike’s pursuit of custom consumer experiences at scale could prove transformative over time, with NKE leveraging company-owned digital (SNKRs continuing to roll out globally; new Nike Live store, Nike App at retail expanding) and key global partners (recent pilot announcement; Nike Plus partnerships with Tmall, WeChat) supported by enhanced data capabilities,” analysts wrote.

March 16, 2018

Two Nike Execs Leave Amid Complaints About Work Environment

Two Nike executives have resigned in the midst of complaints about the work environment.

Nike Brand President Trevor Edwards and VP Jayme Martin resigned on Thursday — the same day that Nike sent a company-wide email to employees addressing workplace conditions and how to “evolve” company culture.

Nike said in a statement that “there has been conduct inconsistent with Nike’s core values and against our code of conduct.”

Martin, who was the vice president and general manager of global categories, joined Nike in 1997. Nike wouldn’t comment on Martin’s departure. He worked under Edwards.

A Nike spokeswoman said “there have been no direct allegations of misconduct against,” Edwards.

They would not comment about direct complaints about Martin.

Neither Martin nor Edwards immediately responded to requests for comment.

Edwards joined Nike in 1992 and will retire in August. While he has immediately resigned his position, he will continue to serve as an adviser to CEO Mark Parker to help Nike through the transitional period.

Nike also announced that Parker will stay on as chairman, president and CEO beyond 2020. Parker thanked Edwards for his 25 years of work in a statement on Thursday.

“He has helped us grow and strengthen our brand on a global scale,” Parker said.

“I am committed to stay in my role as Chairman, President and CEO beyond 2020. Trevor has decided to retire. We are fortunate to have a strong management team in place who is well suited to drive our next stage of growth and to steward and evolve our culture in the future.”

Go back

Leave a Reply