Nike took a bold step when it signed Colin Kaepernick as one of its brand ambassadors in 2018. It was a move that was met with both praise and criticism. While many saw the move as an act of courage, others saw it as one that would hurt the company’s bottom line. The question remains – did Nike lose money after signing Kaepernick? In this article, we will explore how this move impacted Nike’s financial performance. We will examine the data, explore the opinions of stakeholders, and look at the overall impact of this controversial decision.
No, Nike did not lose money after signing Colin Kaepernick. The move was initially met with criticism, but it caused Nike’s sales to jump by 31% and the company’s stock to reach an all-time high. Nike also received an increase in social media engagement and positive sentiment from consumers. The campaign was a huge success and proved to be a great decision for the brand.
Did Nike Lose Money After Signing Kaepernick?
Nike’s decision to sign former NFL quarterback Colin Kaepernick as one of its brand ambassadors in 2018 sparked a strong reaction from both sides of the political aisle. While some praised the move as a powerful statement of support for Kaepernick’s stance against racial injustice and police brutality, others felt the move was anti-American and called for a boycott of the brand. So, did Nike lose money after signing Kaepernick?
Immediate Impact
In the immediate aftermath of the announcement, it appeared that Nike did suffer some financial losses due to the Kaepernick controversy. The company’s stock price dropped 3% in the days following the announcement, and some customers destroyed their Nike apparel in protest. The company also faced criticism from some of its long-term sponsors, such as the NFL and the National Rifle Association, who felt the move was inappropriate.
Long-term Impact
Despite the initial backlash, Nike’s decision to sign Kaepernick seems to have paid off in the long run. In the months following the announcement, the company’s stock price recovered and ultimately reached an all-time high. Nike’s sales also increased by 10% in the year following the announcement, and the company reported record profits in 2019.
Conclusion
While Nike faced some backlash when it signed Kaepernick, it appears that the decision ultimately had a positive impact on the company’s bottom line. The company’s stock price recovered, sales increased, and profits hit a record high. In the end, it appears that Nike’s decision to stand by Kaepernick was a financial success.
Frequently Asked Questions
Q1. Did Nike Sign Colin Kaepernick?
Yes, in September 2018 Nike signed Colin Kaepernick to an endorsement deal, making him one of the faces of their “Just Do It” campaign. Kaepernick had been a controversial figure since 2016 when he decided to kneel during the national anthem before NFL games to protest police brutality and racial injustice.
Q2. What did Nike’s Stock Price do After Signing Kaepernick?
After the announcement of the endorsement deal, Nike’s stock price initially dropped by 3%, but it quickly recovered and ended up rising by 6% over the following week. This was despite the fact that Nike received a backlash from some customers who disagreed with Kaepernick’s message.
Q3. Did Nike Lose Money After Signing Kaepernick?
No, Nike did not lose money after signing Kaepernick. In fact, according to analysts at Susquehanna Financial, the company’s sales increased by 31% in the weeks following the announcement, and their online sales rose by a staggering 82%. This suggests that the endorsement deal paid off for Nike in terms of increased sales and profits.
Q4. How did the Kaepernick Deal Impact Nike’s Brand?
The Kaepernick deal had a positive impact on Nike’s brand. After the announcement, Nike’s favorability rating among consumers rose from 43% to 57%, and the company’s brand awareness also increased significantly. This suggests that the endorsement deal was a success in terms of increasing Nike’s brand recognition and appeal.
Q5. Did Nike Face any Backlash After Signing Kaepernick?
Yes, when Nike announced the endorsement deal with Kaepernick there was an immediate backlash from some customers who disagreed with his message. Some customers even went as far as to burn their Nike products or post pictures of them cutting the Nike logo off their clothes. Despite this, the deal was ultimately a success for Nike and resulted in an increase in sales and profits.
Q6. How Did Kaepernick’s Endorsement Impact the NFL?
Kaepernick’s endorsement deal with Nike had a mixed impact on the NFL. On the one hand, it was seen as a sign of solidarity with Kaepernick and his message of racial justice, which was welcomed by many. On the other hand, some felt that the NFL was not doing enough to protect Kaepernick’s rights and that the deal was an attempt to distract from their inaction.
In conclusion, Nike has undoubtedly seen a dip in its profits since signing Kaepernick as its spokesperson, but they may have not lost money in the long run. Despite the initial backlash against their decision, the public’s opinion of Nike has improved significantly in the time since the deal was made, and it has likely increased the company’s overall market share. While the financial results of their decision may remain unknown for some time, it is clear that Nike made a bold move that has paid off in terms of public perception and support.
