It’s difficult to say that the advertisement campaign featuring former NFL star Colin Kaepernick caused Nike to lose face in front of investors. If anything, Kaepernick added $6 billion to Nike’s market value.
Nonetheless, Nike’s shares fell by more than 4 percent in after-hours trading despite a 10 percent rise which equates to approximately $9.95 billion and another boost of 15 percent, translating to $1.1 billion profit.
Investors weren’t satisfied with 10 percent revenue growth, with one of them stating that it is not enough and that it should be higher than that.
Even with the fall in shares, it could be only temporary and Nike is already managing to pay off the investments, even if it is minimal.
North American sales rose up to 6 percent during the quarter, its second quarterly increase in a row. Nike’s total sales in apparel surged 11 percent, where footwear had 10 percent and digital sales skyrocketed to 36 percent.
Sales in China soared to 20 percent, and in Nike’s Asia Pacific & Latin America division were 14 percent. Europe, Middle East & Africa segment jumped 9 percent only.
Meanwhile, Nike also repurchased 17.8 million shares for around $1.4 billion, during a $12 billion stock buyback program.
Nike is generally pleased with their actions, even with the backlash that came with their decision, but risks have to be taken to come out at the top.